Hiring confidence is creeping back — are you ready to act?

With the UK Government increasing Employers’ National Insurance Contributions from 13.8% to 15% and lowering the threshold to £5,000, businesses are facing higher payroll expenses . These changes, coupled with a 6.7% rise in the National Living Wage, are prompting companies to reassess their hiring strategies.

After a subdued start to the year, the job market is showing signs of momentum. However, the increased financial pressure means that recruitment is becoming more cautious, strategic, and focused on flexibility.

With over 1.55 million job ads active in February, the market stabilised, but the big story this spring is regional and sector-specific movement (REC & Lightcast, April 2025). In particular, Scotland, the East Midlands, and key areas of the North are powering vacancy growth — while cautious optimism begins to emerge in Financial Services, Facilities Management, Construction, and Distribution.

From skill shortages and cost control to the rising impact of sickness absence.

Let’s break down what’s happening — and how to stay ahead.

FM & Distribution: Temporary Talent Is More Crucial Than Ever

The post-Christmas lull in FM and Distribution hiring is behind us. These sectors are back in motion — but the game has shifted. While vacancy levels remain stable, the challenge now is flexibility.

Recent data shows:

• Job ads for gardeners and landscapers surged over +30% from January to February, as FM firms geared up for the spring season (REC Labour Market Tracker, Apr 2025).

• Security roles saw a slight decline after a January peak, but demand for frontline operational staff like cleaners, porters, and caretakers remains solid.

• In Distribution, delivery operative postings dropped sharply in February (-11.6%) after the seasonal rush — but warehouse, logistics and planning roles are already seeing renewed demand.

This all points to one thing: employers are balancing fixed teams with temporary and interim hires to maintain service and handle sudden absences.

How to Stay Ahead:

• Rely on temp talent pools. We’re seeing spikes in absence levels — and businesses that can backfill roles at speed have the edge.

• Plan for volume, not just today. Distribution hiring will ramp up again in late Q2 — now is the time to secure supervisors and planners.

• Use flexible contracts. Having agile hiring options (temp-to-perm, rolling interim) ensures stability without long-term cost exposure.

Construction: Skilled Trades Are in High Demand — Again

The construction sector is bouncing back fast.

February saw a 4.7% rise in active construction job ads, building on January’s momentum. And while generalist roles are growing steadily, specialist trades are in real demand:

• Rail construction operatives: +20%

• Stonemasons: +19%

• Plasterers: +16%

• Carpenters and Joiners: still among the top-performing roles

The industry’s challenge remains unchanged: there aren’t enough skilled workers. With major infrastructure projects ramping up and housing initiatives back on the table, competition for experienced tradespeople is fierce.

How to Secure the Best People:

• Act early. The best tradespeople are in high demand — waiting to hire will cost you time and delays.

• Blend perm and interim. Many contractors are preferring short-term gigs right now — securing reliable freelancers will be just as important as growing your perm team.

• Retain, retain, retain. The firms doing best are upskilling their workforce and keeping their talent engaged with clear progression and perks.

Financial Services: Holding Steady, But Gaps Are Emerging

Hiring in Financial Services continues to reflect a selective, cautious optimism.

While some roles saw a drop in job adverts from January to February, others are still in demand:

• Finance & Investment Analysts: -8.7% from January — but still well above 2023 levels.

• Chartered Accountants and Compliance professionals remain among the most searched roles on talent platforms.

• Mid-sized firms (50–249 employees) are the most bullish, with a +19 net intent to hire in the next 3 months (REC JobsOutlook, Apr 2025).

What we’re seeing is strategic hiring: businesses are building lean, highly skilled teams, often using contractors to fill gaps while permanent roles are being reviewed.

How to Build the Right FS Team:

• Hire where it counts. FS teams need compliance, analytics, and digital banking talent — those roles shouldn’t wait.

• Go interim for change and compliance projects. We’re seeing strong uptake in contract FS roles tied to regulation and reporting.

• Plan for Q2-Q3 growth. Economic sentiment is turning — and firms that have prepped their talent pipelines will move faster when budgets open up.

Confidence Watch: Signs of Life, But Not a Surge

Business confidence is inching up — slowly.

• Employer confidence in the UK economy improved slightly in Q1 (net: -23) but remained negative overall.

• Confidence in hiring and investment decisions rose to net: -4, with December seeing the peak optimism at net: +2 (JobsOutlook, Apr 2025).

What does this mean? Businesses are watching costs closely — but not standing still. The appetite for permanent hires is picking up in the North and Midlands, especially in mid-sized organisations.

Meanwhile, temporary hiring sentiment is also improving, especially in FM and Distribution where absenteeism is biting hard.

The Hidden Hiring Risk: Sickness Absence Is Costing You

Sickness absence is no longer just a seasonal challenge — it’s a structural issue.

Recent data shows:

• 48.5% of employers say absence has reduced productivity.

• 36.5% report a decline in service quality.

• Only 13% of businesses say they’re not taking action.

And with illness-related absence now at a decade-high, businesses are turning to:

• Flexible working (51%)

• Workplace health training (40%)

• Mental health support (30%)

What This Means for Hiring:

• You need contingency staffing. Interim hires and temp pools are essential when permanent staff are unexpectedly off.

• Health and wellbeing will impact retention. Candidates are asking about flexibility and support — firms that offer it will attract better talent.

• It’s not just a HR issue — it’s a recruitment one. Absence planning now belongs at the centre of your workforce strategy.

What’s Next? Build Agile, Resilient Teams

April’s recovery in hiring activity is promising — but the lesson is clear: growth is patchy, talent is tight, and employers need to stay flexible.

Whether you're hiring a project team in construction, expanding your FS compliance function, or covering sudden demand in FM and Distribution — the key is speed, planning, and access to talent that can move fast.

Let’s talk about how we can support your Q2 hiring goals. From permanent placements to temp solutions, we’re helping clients across the UK build strong, forward-thinking teams.

📩 Drop us a message at office@mostonconsultants.co.uk to start the conversation.

See you next month.