13.01.26

Stream of Consciousness: My Take on the UK Labour Market and Job Economy

It’s widely acknowledged that the UK labour market has entered a new phase in the economic cycle.

Politics and tribalism aside – ‘it is what it is’. For both businesses and candidates, those that adapt best will win out in the new and emerging landscape.

Economic uncertainty, cautious hiring and rising costs have reshaped how people look for work and how organisations intend to recruit and re-engineer their workforces. The good news? Change always creates opportunity for those who are willing and able to adjust and compete.

The challenges and realities

First, let’s be honest about what’s difficult right now.

Hiring has slowed in many sectors as employers manage tighter budgets and start to pay much closer attention to efficiency, productivity and output – in a more-for-less mission to compete in a brutal and unforgiving climate.

Recruitment processes are more rigorous, and competition for good jobs has intensified.

The use of chatbots, job site fatigue, AI and ATS platforms (applicant tracking systems) are, to an increasing degree, depersonalising the candidate experience.

Skills shortages remain ‘a thing’. In areas like technology, healthcare, engineering, sustainability and data, demand still outpaces supply. Many organisations are also wrestling with hybrid working expectations, rising wage bills and the need to reskill teams as technology evolves.

In short, both sides feel the squeeze, just in different places.

Fish where the fish are – target high-growth and sustainable sectors.

Despite the headlines, the UK economy is far from static. It’s quietly and organically reshaping itself.

For job seekers, there are real opportunities in growing sectors and in roles that didn’t exist a decade ago. Digital skills, green jobs, cyber security, AI-adjacent roles, project management and specialist customer-facing positions are all seeing steady demand. Flexible and portfolio careers are also becoming more accepted, opening doors for contractors, freelancers and career switchers.

Employers, meanwhile, have an opportunity to rethink how they attract and retain talent. With candidates more selective, organisations that offer clarity, purpose, learning opportunities and genuine flexibility stand out quickly.

There’s also a chance to hire differently by focusing on aptitude, future potential and transferable skills rather than perfect unicorn CV matches.

In simple terms, the labour market may be tighter, but it’s also more thoughtful.

How to compete as a job hunter:

So how do you get noticed in this new environment?

Get specific. Generic CVs and applications struggle in a crowded market. Tailor your profile to the role you want, not every role you could do. Clear positioning makes you easier to say “yes” to.

Words speak – numbers SHOUT!

  • Show impact, not tasks. Employers want evidence. Replace lists of responsibilities with outcomes, results and problems you’ve solved – if you can’t put a number on it, it’s just words.
  • Invest in skills. Short courses, certifications and self-led learning signal momentum. You don’t need to know everything, but you do need to show curiosity and adaptability.
  • Use your network. Many roles are filled before they’re advertised. Conversations matter. A coffee chat can often achieve more than what ten applications could ever do.
  • Stay human. In an AI-heavy recruitment world, authenticity stands out. Thoughtful cover notes, clear communication and professionalism still carry weight.

A market in motion – demands agility, an open mind and a willingness to compete

The UK labour market isn’t broken; it’s evolving. Yes, the pace feels slower and the competition sharper, but opportunities still exist for those who can and do pivot and seek a new and better direction.

For employers willing to hire creatively and candidates prepared to sharpen their focus, this moment can be less about waiting it out and more about moving forward with intention.

Sometimes progress doesn’t shout. It quietly rewards the prepared.