UK sees bigger than expected drop in jobs

There were more than 1.3 million active job postings in December 2025, down from that same time last year, data from the latest Recruitment & Employment Confederation (REC) and Lightcast Labour Market Tracker shows.

The number of overall active postings in December 2025 was 1,311,956, a decrease of 11.1% on the number of job postings in November 2025. The number of new job postings in the UK was 573,597 – down by 8.2% on last month. Big falls from November to December are seasonally typical.

• The total number of active job postings in December 2025 stood at 1,311,956, representing an 11.1% decrease from November 2025. Such falls are typical in the run-up to Christmas.
• Of more concern was the drop of 7.1% from December 2024, which was affected by the same seasonal factors.
• The top five hiring hotspots, based on growth in active job postings, were Isle of Anglesey (27.0%), Dumfries and Galloway (19.7%), Scottish Borders (18.7%), Northumberland (16.7%), and Causeway Coast and Glens (16.3%).
• The sharpest declines in job postings were recorded in Torbay (-17.2%), Dudley (-17.4%), West Sussex (North East) (-18.6%), East Surrey (-23.9%), and the Isle of Wight (-26.9%).

A bigger downturn than expected

“The late Budget meant that few firms had time to put revised hiring plans into place before the Christmas break, contributing to a sharper December downturn than usual,” said REC Chief Executive Neil Carberry.

“All eyes are now on January for signs of recovery. There is some optimism for hiring in employer survey data, but it is persuading firms to take the leap that matters. Even so, jobseekers still enjoyed plenty of choice with total new postings last month roughly matching the population of Edinburgh.”

Carberry noted that there is a startling variety in the occupations that grew in demand in 2025, although they loosely relate to key trends for the year ahead in infrastructure, net zero and demographic changes.

The sharpest declines in job postings last year hit roles most exposed to automation, digitalisation and cost pressures, he said.

“If the government wants firms to have confidence to grow, it needs more than interest rate tweaks. It must champion enterprise and investment, make its industrial strategy more impactful, tackle soaring costs such as energy, and avoid tax hikes that stall growth.”

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