Tech Roles Remain Critical in a Wider Labour Market Cooldown
The latest labour market data from the ONS shows that UK job vacancies have fallen by nearly 13% year-on-year, with 94,000 fewer roles advertised compared to this time in 2024. At first glance, it points to a cooling market. But for many employers, hiring remains just as difficult if not more so.
While some sectors have scaled back recruitment, demand for skilled workers in tech, data and public services remains high. Employers in these areas are still competing for limited talent, often under tighter compliance and onboarding pressures.
Labour Market Stats at a Glance
According to the June 2025 ONS bulletin, the UK labour market continues to soften. The estimated number of vacancies between March and May 2025 was 898,000 — a drop of 13% compared to the same period last year, and the 22nd consecutive quarterly decline. Vacancies are now below pre-pandemic levels for the first time since 2021.
At the same time, unemployment has edged up slightly, while the economic inactivity rate has remained stubbornly high. Employers across many sectors are exercising caution, freezing headcount or delaying new hires in response to ongoing economic pressures.
The Recruitment and Employment Confederation (REC) expressed concern, warning that the government must act to avoid compounding the issue. In its June 2025 statement, the REC urged policymakers to avoid “unnecessary additional burdens on hiring” and called for “a truly effective industrial strategy to support businesses as they navigate an increasingly complex economic environment.”
Tech Vacancies Remain High
Despite the wider slowdown, demand for high-skill tech roles remains strong. From cybersecurity analysts to data engineers, employers across both public and private sectors are still battling to recruit the people needed to keep up with digital transformation.
In fact, these roles have become even more business-critical in 2025. The latest Future of Jobs Report from the World Economic Forum indicates that vacancies for roles with these skills are some of the fastest growing. AI adoption, cloud migration, and the push for automation mean organisations can’t afford to fall behind and that’s especially true in the public sector, where legacy systems are under pressure to modernise.
Yet with limited talent supply, these positions are staying open longer and attracting higher salary expectations. High quality candidates have more negotiating power, and many expect remote or hybrid work options as a minimum.
This in turn is increasing the importance of secure digital onboarding processes. Pre-employment screening, right to work checks, and identity verification are no longer back-office admin, they’re a core part of your hiring strategy. Get them wrong, and you risk losing top candidates or falling short on compliance.
What Employers Should Do Now
In a labour market that feels more complex than it looks on paper, employers can’t afford to rely on pre-2020 hiring habits. Fewer vacancies might suggest a quieter market, but the reality is that finding and safely onboarding the right candidate still requires careful planning.
Our advice is to start with the fundamentals. Review your recruitment process to ensure it’s fit for purpose in the modern labour market. Are your job specs clear and realistic? Is your onboarding process efficient without cutting corners?
And crucially, if you’re business is recruiting remotely, or is involved in regulated activity you need to be sure your compliance and vetting is robust enough without being burdensome. A smooth application process for job seekers boosts how they perceive your organisation, before they’ve even started work.
Implementing processes that can be applied to remote or hybrid workers will also boost the talent pool you have access to, particularly for anyone recruiting for senior tech roles.
At Personnel Checks, we help businesses stay compliant, competitive and candidate-friendly — even in a shifting market. Whether you're hiring remotely, scaling quickly or managing regulated roles, our background screening and onboarding tools are designed to make recruitment smoother, safer and more efficient.
To learn more about how we can help your business, get in touch! You can drop us a message here, or give us a call on 01254 355688/