Job Market Update: Q1 Insights & Q2 Outlook

From where we stand, the combination of Q4 2024 and Q1 2025 represents the lowest point in the UK job market in the past two years—a gradual decline that has finally culminated in reaching the bottom.

Key Trends We’re Seeing:

👉 Shift to “Data-First” Approaches: The industry has transitioned from a “digital-first” mindset to a more robust “data-first” approach. All organisations and sectors are prioritising data as a key driver of growth. For leaders, emphasising data-driven experience on their CVs is becoming increasingly important.

👉 Slow Hiring and Decision-Making: Job flow has been relatively low as businesses attempt to handle hiring in-house. Approval processes have been sluggish, with decision-making at its slowest in the past 12 months.

👉 Focus on Cost Control: 2025 is being dubbed “the year of the CFO,” as companies continue to focus heavily on controlling expenses. This financial mindset is driving more cautious hiring.

👉 Contract Roles Outpace Permanent Positions: There has been a noticeable increase in contract opportunities, particularly for senior-level talent. Organisations are opting for “fractional” hires or “try before you buy” arrangements, offering flexibility in case their needs change. Some companies are also relying on creative agencies to fill talent gaps while facing headcount freezes and budget constraints.

👉 Shift to Equity-Based Roles: Some senior professionals, especially those from large corporate backgrounds, are finding it difficult to secure corporate roles, therefore opting for equity-only positions in scale ups, due to budget constraints.

Looking Ahead: Spring 2025 Outlook

👉 Financial Services Recovery: The financial services sector is showing signs of recovery compared to the same period in 2024. This is a positive indicator, as we typically see management consultancies follow suit, with end-user brands not far behind.

👉 Rising Demand for Permanent Talent: As demand for talent begins to pick up, we expect counter offers to become more common. We’ve already started to see early signs of this in March, and we anticipate this trend to continue as we move into the spring.

👉 Company Behaviour: Good quality companies are making sensible offers, while bad companies show bad behaviours and low-ball proposals.

👉 Stronger Pipeline for Q2 2025: Despite the slow start, we have a robust pipeline of opportunities and are optimistic that Q2 2025 will show significant improvement over the same period last year. Our continued investment in relationships and specialisation seems to be paying off as we head into spring.

Conclusion:

👉 Although the first quarter of 2025 has been slow, we are seeing signs of stabilisation and potential growth. As companies adjust to new financial realities and the demand for talent increases, we are confident that the job market will improve in the Spring.