What is the current state of the UK labour market?

The UK labour market is in a fragile state with weak hiring demand and limited signs of recovery, reaching its weakest point in nearly 15 years.

What are the latest UK unemployment figures?

Unemployment in the UK rose to a five-year high in the final quarter of 2025, and is projected to peak at 5.3% this year.

Which sectors are experiencing changes in hiring demand?

Engineering shows improved demand for permanent staff, while retail and hospitality sectors face the steepest reductions in permanent vacancies and temporary worker demand.

Home / Business and Economy / UK Jobs Market Hits 15-Year Low Amidst Uncertainty

UK Jobs Market Hits 15-Year Low Amidst Uncertainty

9 Mar

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Summary

UK jobs market is at its weakest in nearly 15 years.
Unemployment rose to a five-year high in late 2025.
Services sector drives a modest rise in business output index.

UK Jobs Market Hits 15-Year Low Amidst Uncertainty

The UK's labour market is currently in a fragile position, experiencing weak hiring demand and showing minimal signs of recovery. An employment index from BDO has recorded its weakest reading since March 2011, reflecting a significant contraction in the jobs market.

This downturn aligns with official figures showing UK unemployment surged to a five-year high in the final quarter of 2025, with youth unemployment also at an 11-year peak. The Office for Budget Responsibility anticipates unemployment to peak at 5.3% this year.