Finance
UK job postings rise, easing some labour market gloom
Published by Global Banking & Finance Review®
Posted on February 21, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 21, 2025
2 min readLast updated: January 26, 2026
UK job postings rose in January, marking the first increase in seven months, suggesting resilience in the labour market despite higher employer taxes.
LONDON (Reuters) - The number of job postings in the United Kingdom rose for the first time in seven months in January, a survey showed on Friday, suggesting the country's jobs market might be weathering the hit from higher taxes on employers.
The Recruitment & Employment Confederation said total active job postings rose to 1.52 million, up 7.2% from a sluggish December, the first month-on-month increase since June.
While employers typically hire more staff at the start of the year, the 34.4% jump in new postings between December and January was stronger than the 27.9% rise between the same two months a year earlier.
The Bank of England is watching the labour market as it considers when to cut interest rates again. It has said an expected slowdown in hiring is likely to suppress longer-term inflation pressures.
Surveys have suggested that finance minister Rachel Reeves' decision to increase social security contributions paid by employers from April will reduced staffing or cause redundancies. But official data last week showed stronger-than-expected hiring in late 2024.
The number of job postings reported by REC is double the 759,000 job vacancies recorded by Britain's Office for National Statistics for January. The official data - which like the REC figures is not seasonally adjusted - shows a 1.3% rise in vacancies from a three-year low recorded in December.
"While there are tough conversations going on in boardrooms across the country, today's report suggests it is too soon for gloom about the UK economy's prospects overall for 2025," REC Deputy Chief Executive Kate Shoesmith said.
"We will look closely in the coming months to see if we are looking at a broader turn," she added.
(Writing by William Schomberg; editing by David Milliken)
Total active job postings rose to 1.52 million, up 7.2% from December.
The 34.4% jump in new postings between December and January was stronger than the 27.9% rise during the same period last year.
The Bank of England is monitoring the labour market as it considers when to cut interest rates again, noting that a slowdown in hiring could suppress longer-term inflation pressures.
Finance minister Rachel Reeves' decision to increase social security contributions may reduce staffing or cause redundancies, according to surveys.
The REC report indicates that despite tough conversations in boardrooms, it may be too soon for gloom about the UK economy's prospects overall for 2025.
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