The UK labour market saw fewer new job postings in July, signalling a “summer slowdown” for the UK economy.
Last month saw a 9.2 per cent drop in new job postings, compared with June, latest findings from the Recruitment and Employment Confederation (REC) and Lightcast’s labour market tracker show.
New job postings were also lower over the year, with an 11 per cent decline across the country. However, the overall number of active postings rose by 3.4 per cent month on month, leaving around 1.5 million vacancies still live across the country.
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Neil Carberry, chief executive of the REC, said the figures reflected a seasonal slowdown, but argued the underlying market remained resilient.
“Despite a long slowdown driven by uncertainty and rising costs, the British labour market is still creating lots of opportunities,” he said. “Recruiters tell us that firms entered the summer break with a little more positivity than they had earlier in the year, so there is some hope of a bounce once the summer slowdown is over.”
Carberry added that government policy would be critical in maintaining momentum. “If ministers want growth, they must deliver stability and backing for businesses, by moderating policy costs, reforming skills funding and putting the workforce at the heart of economic strategy,” he said.
Wages rising as hiring slows
Separate figures from Employment Hero also indicated softer hiring intentions. Employment levels grew by 2.7 per cent year-on-year, down from the 8.3 per cent increase seen in July 2024, according to its July jobs report.
However, wages continued to rise, following increases in the national minimum wage. Across all age groups, pay rose by 2.7 per cent, while Generation Z saw their wages grow by 5.6 per cent.
Keven Fitzgerald, UK managing director of Employment Hero, said that a mix of rising pay and weaker hiring was hitting smaller firms hardest. “That combination of slower hiring but higher pay is putting real pressure on small businesses,” he said.
He added that fewer seasonal opportunities for young people could have longer-term consequences. “It’s sad to see summer jobs declining as they’re such an important part of growing up,” he said. “Without that stepping stone, young people will enter their first full-time roles without their skills being tested and that makes life harder for them and harder for the employers trying to manage them.”
Opportunities for HR
Despite the challenging labour market conditions, the summer slowdown could present opportunities for HR teams to secure top talent.
Data from recruitment company Michael Page showed that 20 per cent of job seekers plan to start their search in the summer period.
Recruiting during these months could see employers face less competition in the jobs market, with Michael Page advising companies to streamline their recruitment approach and ensure clarity and transparency throughout the hiring process.
For more guidance, read the CIPD’s factsheet on recruitment and selection