The Jobs Market Isn’t Broken, It’s Evolving

It’s easy to feel like the UK jobs market is stuck in a doom loop. Headlines warn of falling vacancies, slowing recruitment, and businesses squeezed by rising costs. The truth is more nuanced and, if we look closely, there’s cause for optimism.

For months, the narrative from policymakers has been that more people need to get into work. The long-term sick, disabled individuals, young workers, and even older employees have been told they’re not doing enough to find jobs. But the reality is stark: the jobs simply aren’t there. According to the CIPD Labour Market Outlook, only 57% of private-sector employers plan to recruit in the next three months, which is down from 65% last autumn and marks one of the lowest readings outside the pandemic era.

Certain sectors hospitality, retail, and social care, feel this more acutely. They’re the industries that traditionally provide opportunities for younger and lower-paid workers, yet rising employment costs and tight budgets make hiring increasingly difficult. Businesses aren’t ignoring the workforce; they’re adapting to the economic pressures in front of them.

KPMG/REC’s Report on Jobs gives a more detailed view of the market. Their Permanent Placements Index dropped to 40.0 in July. To put that in context, the index works on a scale where 50 means no change, numbers above 50 show growth, and numbers below 50 indicate a decline. So 40.0 doesn’t mean only 40% of roles were filled it shows that permanent hiring fell noticeably compared to the previous month. The good news is that this is a slight improvement on June’s 39.1, suggesting that while recruitment is still under pressure, the rate of decline may be easing.

But here’s the silver lining: the slowdown appears to be stabilising. July’s numbers suggest the market isn’t spiralling it’s finding its floor and the increase in candidate availability, far from being a problem, is an opportunity. Employers now have access to a larger, more diverse talent pool than they might have expected. For organisations willing to be strategic, this opens the door to better hires, filling difficult-to-recruit roles, and building stronger teams for the future.

At Corvus People, we’ve seen this first-hand. Companies that focus on thoughtful, targeted recruitment rather than chasing quick fixes are already seeing results. By understanding where the talent is, what motivates them, and how to create roles that match today’s realities, organisations can turn the market’s challenges into long-term advantage.

There’s also a broader lesson here: the jobs market isn’t collapsing. It’s evolving. The pressures on both businesses and employees are real, yes, but the opportunities are equally real. Slowing declines in vacancies, growing candidate pools, and small improvements in recruitment confidence all suggest the potential for a more balanced, sustainable hiring environment.

Of course, it’s not all smooth sailing. Employers need to be realistic about costs, focus on where they can create genuine value for employees, and embrace flexible approaches to work. But with the right strategy, the jobs market can move from contraction to cautious recovery, and that’s where the hope lies: in practical, positive action that benefits both businesses and people.

At Corvus People, we believe that navigating this evolving market is less about reacting to headlines and more about understanding the trends, the people, and the opportunities. With the right focus, companies can not only survive the current climate, but they can thrive.

The jobs market may be changing, but it isn’t broken. With careful planning, thoughtful recruitment, and a focus on opportunity rather than blame, organisations can embrace this evolution and come out stronger on the other side.

By Lesley Armstrong, Office Manager at Corvus People

Sources

https://www.independent.co.uk/voices/jobs-hiring-unemployment-recruitment-economy-minimum-wage-b2805443.html

https://www.ft.com/content/fdd5345f-1f81-469a-b0b8-961c4d84d21e?utm

https://moneyweek.com/economy/uk-wage-growth?utm