LiveCareer®, a career service dedicated to CVs and cover letters, has released findings from its UK Employment Outlook report today based on the responses of more than 1,000 UK workers. The survey examined the overall labour market, hiring and return-to-office mandates in 2025. The results paint a grim picture for the labour market this yea with more than half of those surveyed (56 per cent) thinking the UK labour market will take a turn for the worse in 2025.
The survey found:
- 58 per cent predict the UK labour market will have fewer job openings in 2025
- 61 per cent feel job searching will be more difficult compared to 2024
- 63 per cent report that the UK labour market has become more competitive
- 75 per cent anticipate more UK employers will announce return-to-office (RTO) mandates
- 79 per cent feel UK salaries are not keeping up with inflation and the cost of living
“The workforce has inside knowledge of their employer’s overall financial health, stability, and are a good judge of what’s to come, for example, if layoffs are imminent,” says Jasmine Escalera, career expert for LiveCareer. “More than 58 per cent of our survey respondents expect layoffs to increase this year and 56 per cent think the overall health of the UK labour market will decline. We should take heed and consider this a warning for what’s to come in 2025.”
Workers are increasingly concerned about the ability to land a new job in 2025. The majority of those polled anticipate fewer job openings and feel finding a new role will be a far more challenging prospect compared to last year.
The UK workforce does not have high hopes for the continuation of remote work on a broad scale and anticipate further losses to jobs offering flexible work arrangements. 51 per cent of respondents say there will be fewer remote work opportunities in 2025 while 75 per cent think more companies will announce RTO mandates compared to 2024.
Rising living costs and economic uncertainty are making it harder for workers to keep up with everyday expenses. As wages struggle to keep pace, many find their paycheques stretched thin, raising concerns about financial stability in the year ahead.
When asked about the most important factors when considering a new job, salary and benefits was the top consideration for respondents (76 per cent) but the economic environment and inflation can make it difficult to land a salary that covers the rising cost of living expenses.
