The United Kingdom's employment landscape is displaying tentative indications of recovery according to fresh analysis, though concerning patterns reveal millennials remain particularly vulnerable to workforce reductions. Recent data examining hiring patterns through the final quarter of 2025 suggests a cautiously optimistic shift, yet significant demographic disparities persist.
Vacancy Figures Signal Potential Turning Point
Analysis conducted by recruitment platform CV-Library has uncovered that total job vacancies during the fourth quarter of 2025 surpassed those recorded in the same period during 2024. Furthermore, these figures remained roughly comparable to vacancy levels observed in Q4 2023. This development represents the first instance in six consecutive quarters where job vacancies have demonstrated a year-on-year increase, potentially marking a crucial inflection point for the national labour market.
Employer Sentiment and Hiring Intentions
A December 2025 survey of employers, also undertaken by CV-Library, indicated that a substantial 87% had chosen to pause their hiring decisions as they awaited the Autumn Budget announcement. This temporary hesitation reflects broader economic uncertainties influencing business planning. However, the longer-term outlook appears more favourable, with 71% of businesses expressing readiness to moderately or significantly increase their hiring activities throughout the course of 2026.
Millennials Bear the Brunt of Employment Reductions
Despite these emerging positive signals, a stark demographic challenge remains evident. Scrutiny of the latest Office for National Statistics data reveals that individuals leaving payrolled employment are disproportionately concentrated within the millennial generation. Specifically, the 25-34 age bracket accounts for a striking 76% of the total reduction in payrolled employees witnessed over the past year.
This trend presents a sharp contrast to employment patterns observed in older age groups. Both the 35-49 and 65-plus demographics experienced modest growth in employment during the same period, highlighting a generational divide in job market stability. The disproportionate impact on millennials, many of whom are in their prime early-career phase, raises significant concerns about long-term career progression and economic security for this cohort.
Industry Perspectives and Cautious Optimism
Lee Biggins, Founder and Chief Executive Officer of CV-Library, commented on the findings, stating, "After years of depressing job market data there are early, cautious signs of a recovery." He tempered this optimism with a note of caution, adding, "It's not time to break out the economic champagne just yet though, higher business rates, employment costs, and an employment rights bill that brings greater risk to hiring may yet derail any recovery."
Biggins specifically addressed the worrying trend affecting younger workers, noting, "And it's a worry that Millennials in their prime early-career phase are being hit hardest when it comes to the reduction in payrolled employees." He did, however, point to some encouraging sector-specific developments, remarking, "But, there are sectors like engineering and construction that are showing encouraging signs, and we'll have to wait and see whether this continues into 2026."
Sector-Specific Rebound and Transparency Issues
Further examination of the data identifies specific industries where hiring appears to be rebounding. Engineering, hospitality, and construction all displayed signs of recovery in late 2025, following a notably weak fourth quarter performance in 2024. This suggests that the tentative recovery may be unevenly distributed across different segments of the economy.
However, a persistent issue within the job market relates to salary transparency. The analysis reveals that fewer than half of all job postings (48%) include details regarding remuneration. This lack of disclosure persists despite compelling CV-Library data indicating that roles which do advertise a salary attract, on average, 60% more applications from potential candidates. This transparency gap may be hindering efficient matching between employers and job seekers.
The overall picture that emerges is one of fragile improvement within the UK's employment sector. While the increase in vacancies offers a glimmer of hope after a prolonged period of stagnation, the concentrated negative impact on millennial workers and ongoing challenges like salary non-disclosure underscore that a full and equitable recovery remains a complex and uncertain prospect.
