New data from the Office for National Statistics (ONS) reveals that the UK unemployment rate for people aged 16 and over rose to 4.8% between July and August 2025 - marking an increase on the previous quarter and the same period last year.
While headlines may suggest concern, this shift reflects a more nuanced change in the labour market. Employers are advertising fewer roles overall, but when they do go to market, they’re doing so with greater intent to hire and retain.
As Mark Rothwell, CEO of Hiring Hub, explains:
“We’ve definitely seen a drop in the number of roles available, but fill rates are increasing. When employers go out to market now, they tend to have a much higher intent to recruit."
A Changing Landscape for Employers
For employers, today’s shifting labour market calls for greater agility and strategic clarity. With fewer vacancies being advertised overall, organisations are becoming more selective about the roles they choose to open — and more deliberate about securing the right talent when they do. As unemployment rises, many businesses are concentrating on:
Strengthening workforce planning: ensuring hiring decisions align with long-term business needs rather than short-term pressures.
Leveraging expert, consultancy-led recruitment support: refining job requirements, streamline processes, and attract high-quality candidates.
Enhancing the candidate experience: recognising that even in a competitive labour market, top talent expects clarity, empathy, and professionalism.
While a changing economy can introduce uncertainty, it also presents opportunities for employers to build stronger, more resilient teams. By approaching hiring with foresight and partnership-driven thinking, organisations can navigate the challenges of a shifting market and position themselves for sustainable growth.
Advice for Jobseekers: Standing Out in a Tougher Market
For candidates, the current market means preparation and presentation matter more than ever. Rothwell shares several insights that can make the difference:
Develop strong soft skills
Employers continue to prioritise communication, teamwork, and reliability. Showcase these through clear examples in your CV and interviews.Leverage all experience
Even personal projects, volunteer work, or community roles can highlight transferable skills - use them to your advantage.Focus on in-demand skills
Skills in AI, data, tech, and languages remain highly sought-after. Look for employers offering training or upskilling options.Always provide references
Include at least two credible references to demonstrate reliability and integrity.Be transparent
Honesty on your CV is non-negotiable. Employers value authenticity and trust.Stay professional
Whether in-person or online, first impressions count. Dress appropriately, prepare thoroughly, and engage confidently.Do your research
Understand the company’s values, goals, and culture before your interview - it shows genuine motivation.
Guidance for Employers: Building Stronger Recruitment Foundations
Recruitment is a two-way street - and employers have a vital role in creating an environment that attracts, engages, and retains the best talent. Rothwell advises organisations to:
Invest in training and upskilling
Closing skill gaps through learning and development helps boost retention and engagement, particularly among early-career hires.Champion inclusive hiring
Review job descriptions and interview processes to ensure accessibility, fairness, and diversity.Open pathways for entry-level talent
Graduate schemes and apprenticeships remain effective ways to secure future talent pipelines.Communicate career progression
Candidates want to see growth potential - clarity about progression routes can be a powerful attractor.Promote your employer brand
Highlight what makes your business unique - flexibility, culture, values, or benefits - to connect with top talent.Use accurate job titles
Benchmark roles against the wider market to improve visibility and attract the right candidates.Maximise reach through smart advertising
Use multi-posting tools to ensure your vacancies reach the most relevant audiences across UK job boards.
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The Employer’s Role in a Shifting Economy
As the UK labour market continues to adjust, employers play a pivotal role in shaping how organisations respond to emerging challenges and opportunities. The latest ONS data underscores the importance of thoughtful, strategic hiring decisions - ensuring businesses attract the skilled talent they need while supporting current employees to adapt, retrain, and progress.
In periods of uncertainty, strong employers don’t simply fill vacancies - they cultivate a culture of clarity, communication, and long-term thinking. Organisations that invest in workforce planning, embrace data-driven insights, and prioritise employee development will not only navigate changing market conditions but also strengthen their foundations for the future.
By combining strategic foresight with genuine support for their people, employers can become resilient leaders in a rapidly evolving world of work.
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