Job vacancies fell in 2024. Should we worry?
Posted on 4th March 2025
At the end of 2024 reports showed the sharpest decline in job vacancies since August 2023.
Increasing employment costs appear as one of the reasons behind the falling demand for candidates. However, employers remain willing to pay higher starting salaries for the most talented recruits. At the same time, the Midlands is bucking the trend for temporary employment, showing a small increase, compared with other regions.
The overall UK employment picture
Traditionally, December is one of the quieter months for recruitment, so should we worry about the apparent downturn in vacancies?
Figures from the Office for National Statistics (ONS) showed UK vacancy numbers falling in the three months from October to December 2024. This is a continuing trend seen over the last two and a half years. Despite this, the most recent figures show:
a small increase in employment
more people becoming self-employed
increases in government supported training.
A temporary hitch or an employment problem?
Increases to minimum wages and National Insurance thresholds and levels in April will certainly add to employers’ financial concerns. However, forecasters have some optimism for the UK economy this year.
The most significant reductions in vacancies were for executive and professional roles and for those in IT. Starting salaries for permanent staff increased strongly in December with a more modest increase for temporary workers. The number of job seekers has increased too, with the sharpest rises for permanent and temporary roles since June last year.
There are increasing concerns about the number of young people who aren’t in employment, education or training (NEET). The figure was at its highest level for 11 years at the end of 2024. For employers these young people have potential to become long-term contributors to business success.
The increased cost of employment
Overall unemployment figures have increased slightly, to 4.4% for working age adults, so employers can still choose from a significant talent pool.
Average annual earnings growth in the UK went up by more than 1% to over 5% in October last year. Along with the extra NICs, added employment costs are probably enough to make employers pause their recruitment plans. However, predicted economic growth will almost double in 2025 to a modest 1.7%, so there’s cause for optimism.
Looking ahead
The UK’s jobs market is changing, influenced by automation, different expectations for both employers and candidates, and evolving business needs. It’s estimated that almost two-thirds of children now at primary school will work in roles that don’t yet exist.
Meeting current needs for both employers and job seekers is part of our role as a recruitment agency. However, we must also look ahead to help everyone meet future skills needs. We can advise on the best approaches to build a resilient workforce ready to respond to fast-changing workplaces.
Recruitment strategies must take account of more than immediate vacancies. They should define long-term skills needs and competencies and identify how to attract the strongest candidates.
Job seekers must take account of their possible career paths to identify the best opportunities for them.
Here to help
With over 22 years’ experience Ascendant Recruitment can help employers and job seekers alike explore the varied skills and opportunities Milton Keynes has to offer.
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