Market update, October 2025
After a long and very hot summer in the UK, it feels like everyone is back to work, heads down until the Christmas break. Rather than the usual seasonal slowdown, we remained busy at Levick Stanley, with a steady flow of new roles and strong engagement from candidates. Hopefully this will continue into the third quarter of this financial year.
Across the wider market, the last few months have delivered a mix of headlines – from strategic trade partnerships and cautious hiring signals, to growing investment in AI and digital infrastructure. Here’s what we’re seeing, and how it might shape hiring for the rest of the year.
Hiring intentions dip
According to the latest ONS Labour Market Overview (Sept 2025), UK job vacancies have fallen by 10,000 this quarter – a 1.4% decline that reflects softening hiring sentiment across many sectors. At the same time, employment remains high and average earnings continue to rise, suggesting a market that’s cooling but far from stagnant.
UK/USA tech deal: What it means for hiring
The new UK-US Tech Prosperity Partnership promises to deliver real economic uplift, with investment coming from major players, including Google, Microsoft and Blackstone. Over 7,600 jobs are expected to be created, many of which will fall into the transformation, digital and data centre infrastructure spaces.
This deal reflects a wider confidence in the UK as a tech hub, with change and transformation sitting at the heart of many of these initiatives. We expect to see continued demand for experienced talent in strategy, programme leadership and enterprise architecture.
AI: Disruption with opportunity
AI’s potential to reshape the workforce continues to dominate headlines. The World Trade Organization projects AI will boost global trade by nearly 40% by 2040, but the more immediate challenge is how organisations and workers adapt.
Only 43% of UK workers feel they’re receiving adequate support and training to keep pace. But as Forbes points out, this isn’t the first time work has evolved, and history shows that adaption not automation defines success. The organisations that treat AI as a partner to human capability, rather than a replacement, will be better placed to compete for top talent.
Retention, skills and the changing expectations of talent
A new TechRadar report revealed that more than half of UK SMB employees have considered quitting in the past year, citing stress, lack of progression and misalignment between expectations and experience. For employers, the cost of mis-hires and preventable attrition now averages £233k annually.
Meanwhile, 49% of HR leaders say they’re struggling to attract candidates under 30, signalling longer-term risks to talent pipelines. As expectations shift and skill demands grow, retention and development strategies will play a critical role in keeping organisations competitive.
What this means for hiring organisations
With rising costs and cautious market sentiment, employers need to focus on value rather than volume. Every hire should deliver against both immediate outcomes and long-term capability needs. AI, automation and digital transformation are changing the skills landscape fast.
If you are finding it difficult to attract or retain the right transformation talent, or you’re unsure how to balance immediate delivery with future growth, get in touch with the team.
What this means for job hunters
Success depends on staying adaptable. Increasingly, employers are looking for individuals who can work alongside AI and digital tools, not compete against them. If you’re thinking about your next move, or want to understand where your skills are best placed in a shifting market, we’d love to talk. We’re here to help you navigate your next step with clarity and confidence.