Recruitment is evolving rapidly in 2025. The rise of AI, changes in workforce and in jobseeker expectations, and shifting economic conditions mean that businesses must stay ahead of the latest hiring trends to secure top talent.
With the UK job market showing signs of recovery after a decline in 2023, recruiters, both internal and external, are now focusing on smarter ways to discover quality hires, on data-driven strategies, and innovative technologies. In this article, I’ll run you through the key recruitment trends shaping the UK job market in 2025, backed by the latest research and statistics.
- Skill-Based Hiring Takes Centre Stage – A welcome change!
Skill-based hiring has gained significant traction, particularly as organisations fortunately move away from traditional degree-based/degree-focused hiring practices. Instead of focusing on formal qualifications as had traditionally been the way, companies are moreso assessing candidates based on their capabilities and potential, and seem to be genuinely looking at the bigger picture – looking at the person as a whole, their abilities and their potential.
It’s a game changer – For the better!
According to McKinsey, hiring for skills is five times more predictive of job performance than hiring based on education and twice as predictive as hiring based on experience. Additionally, employees hired based on skills rather than degrees tend to stay 34% longer, improving retention rates.
Large corporations like Google and IBM have already adopted this model. IBM, for instance, has implemented apprenticeship programmes that focus on skill development over formal education.
- AI-Driven Recruitment Optimises Hiring Processes
Whilst I’m not a huge fan of recruitment driven primarily by AI, I can’t deny that Artificial intelligence (AI) is revolutionising recruitment, and some of the more positive ways in which we see this is via automation of repetitive tasks such as initial CV screening, interview scheduling, and early-stage candidate matching. This form of AI-powered recruitment is already showing impressive results:
AI-selected candidates are 14% more likely to pass interviews than those chosen by humans, according to Columbia Business School.
Unilever’s AI-driven hiring process has saved over 100,000 hours annually and increased diversity hires by 16%, while also cutting hiring time by 90%.
AI-powered tools help mitigate unconscious bias, making recruitment more inclusive and objective.
The growing adoption of AI allows recruiters to instead focus their time on strategic decision-making and human-centred hiring, using the power of personal assessment and decision making rather than the more administrative side of the job.
- Employee Advocacy Boosts Employer Branding
As job seekers become more selective, employer branding has taken centre stage, becoming much higher on a candidate list of priorities and expectations. Job seekers are increasingly prioritising workplace reputation, with 88% of candidates considering brand trust a key factor in their decision-making.
Employee advocacy is proving to be an invaluable tool for enhancing employer branding online. Research shows that content shared by employees receives 8 times more engagement than brand-posted content, and is 25 times more likely to be reshared.
In addition to talent attraction, employee-led advocacy drives business success—leads generated through employee networks convert seven times more than other marketing leads. Companies that tap into this trend will gain a recruitment and sales advantage in 2025.
- Flexibility and Hybrid Work Continue to Shape Hiring
The debate around return-to-office (RTO) policies continues to evolve, with flexibility now a key expectation for many UK employees. Data from the Flex Index, a survey of flexible working habits by Scoop, finds that 72% of UK employers offer total work location flexibility, with only 28% requiring full-time office attendance. What a turnaround from the pre-Covid days!
Structured hybrid models, where employers specify office time, are the most popular, used by 44% of businesses, which kind of makes sense. Notably, 38% of UK employers require 2-3 days a week in the office, while only 3% mandate one or four days. Small businesses lead in flexibility, with 76% offering fully flexible work compared to 17% of large companies. Hurrah for the small business!
Recent data also shows the continued rise of hybrid working in the UK. In January 2025, 16% of British workers were fully remote, 25% hybrid, and 41% office-based. Flexible work arrangements, including regular or ad-hoc home working, were most common in 2023 (62%) – well, who doesn’t like a nice day of working from home! UK workers prioritise flexibility for work-life balance and manageable commutes, with many willing to accept pay cuts for flexible hours, location, or a 4-day work week. These findings highlight that flexibility is now a fundamental expectation, influencing hiring and retention strategies.
- Mobile-First Recruitment is a Must
In today’s digital world, mobile-first recruitment is no longer optional. According to Appcast, 67% of job seekers now complete applications using mobile devices. A cumbersome application process can lead to talent loss, with candidates instead preferring to look at employers offering a seamless mobile experience.
To stay competitive, companies have to optimise job applications, career sites, and recruitment processes for mobile use. People expect ease, convenience and speed. The ‘One-Click-Apply’ system appeals to many, although it has to be said that this does of course dilute the quality of the applications in terms of match the requirements of the role, but again this is where we see AI step in and eliminate highly unsuitable applications.
- Diversity and Inclusion Remain a Priority (Unless you’re ‘Target’!)
Diversity hiring is more than just a buzzword—it’s a business necessity. Companies with diverse teams benefit from enhanced innovation, better decision-making, and improved financial performance.
McKinsey reports that executive teams with more than 30% women outperform those with fewer women.
51% of employers say diversity policies attract candidates with unique skills.
And of course, in this political landscape, it would benefit all good companies to share clearly their DEI policies, to attract a wider talent pool to consider them.
To foster inclusivity, recruiters must ensure job postings are free of biased language, implement structured interviews, and pro-actively seek diverse talent pools.
- Candidate Experience Becomes a Key Differentiator
The UK job market has become increasingly candidate-driven, meaning organisations must prioritise positive candidate experiences to attract top talent.
Companies with a 5-star rating on a candidate review site see a 30% increase in applications.
78% of candidates who have a positive hiring experience are likely to refer others to the company.
Employers with strong candidate experience strategies report a 70% reduction in cost per hire.
Providing timely feedback, streamlining the hiring process, and maintaining transparent communication can significantly boost an employer’s reputation.
- Data-Driven Hiring Enhances Decision-Making
Data analytics is playing an increasingly important role in recruitment, helping organisations refine their hiring strategies and make informed decisions.
A data-driven approach can expand candidate pools by up to ten times, significantly increasing the chances of finding the right fit for a role. Structured interviews and objective assessments further enhance hiring accuracy, with 78% of HR professionals reporting improved quality of hire through data-driven methods.
Moreover, leveraging data helps reduce bias, with 69% of HR professionals stating that analytics has enabled them to make fairer and more effective hiring decisions.
The UK Job Market: Key Insights
The UK job market has seen fluctuations over the past year, with job creation peaking in early 2023 before declining. However, the market is showing signs of recovery in 2024:
The per-account job creation rate in the UK fell from 58.1 in Q1 2023 to 43.3 in Q4 2023 but began recovering in Q1 and Q2 2024 (47.6 and 47.7, respectively).
Temporary roles declined in Q3 2023 (-1.2%), grew slightly in Q4 2023 (+0.8%), declined again in Q1 2024 (-1.6%), and saw a small rise in Q2 2024 (+0.5%).
While job figures in 2024 remain below 2023 levels, the quality of jobs has improved, with better deal sizes and increased conversions.
This data indicates that while hiring activity may not yet have returned to pre-2023 levels, recruiters are focusing on quality over quantity.
Conclusion
As we move through 2025, companies that embrace skill-based hiring, aspects of AI-driven recruitment, and flexible work arrangements will gain a competitive edge. Meanwhile, employer branding, candidate experience, and diversity will continue to shape hiring strategies. With the UK job market in a state of gradual recovery, businesses that leverage data-driven insights and innovative technologies will be best positioned for success.
Navigating these changes requires more than just keeping up with trends—it demands a proactive, strategic approach. That’s where we come in. Our expert team at Courtney Recruitment specialises in helping businesses secure top-tier talent by leveraging the latest recruitment methodologies and insights, as well as almost 30 years experience of doing so. Whether you’re looking to strengthen your leadership team or build a workforce that drives long-term success, we have the expertise, network, and industry knowledge to make it happen.
Let’s shape the future of your hiring strategy together. Get in touch with Courtney Recruitment to discover how we can help you find and retain the best talent in 2025 and beyond.