Job Market Report
January 2025
Provided by CV Screen
What’s happening to demand?
COMMENTARY
We have seen a continuing softening in the Jobs Market over the last 3 months (Q3 2024 to Q4 2024), with demand falling across both the Marketing and IT sectors. The number of roles in the Finance Sector grew in Q4 but as a whole, the number of adverts has been stable in 2024.
At the same time, the number of candidates who are active on the Job Boards has fallen. We believe that this is as a result of salaries cooling and candidates becoming more wary of change.
Demand for IT Staff
The demand for candidates within the Tech sector continues to fall. The number of IT vacancies being advertised was at a historical high in Q1 2022, but has consistently dropped over the last couple of years.
Over the last couple of years, the UK has seen a decline in IT vacancies due to a combination of economic uncertainty, rising operational costs, and shifting business priorities.
Additionally, the rise of automation and AI-driven solutions has streamlined certain IT functions, reducing the need for large in-house teams. Brexit has also played a role, impacting the availability of skilled overseas talent and making it harder for companies to fill specialist IT roles. Furthermore, as businesses focus on cost-cutting and restructuring, many are outsourcing IT functions or consolidating roles, leading to fewer advertised vacancies.
Demand for Finance Staff
The number of job advertisements for Accountancy & Finance staff has remained fairly flat throughout 2024. Compared to other sectors, there remains a healthy number of vacancies.
The number of accountancy and finance vacancies in the UK has remained steady over the past couple of years due to ongoing demand for financial oversight, regulatory compliance, and digital transformation. Economic uncertainty, including inflation and interest rate changes, has made strong financial management essential for businesses, driving demand for professionals skilled in cash flow forecasting, cost control, and financial planning. Additionally, evolving tax laws, CIS regulations, and ESG reporting requirements have kept companies reliant on finance professionals to ensure compliance.
At the same time, a shortage of qualified accountants and increasing competition for talent, particularly in management accounting, FP&A, and audit, have sustained vacancy levels. Many businesses are also upgrading their ERP systems (e.g., Oracle NetSuite, SAP), requiring finance teams with data analysis and automation expertise. SMEs and startups continue to expand their in-house finance teams, while some businesses prefer contract or interim finance professionals to navigate economic uncertainty. As a result, finance professionals remain a critical function, ensuring stable demand across the sector.
Demand for Marketing Staff
The sharp decline in marketing job vacancies over the past two years can be attributed to several key factors, primarily driven by economic uncertainty, budget cuts, and shifts in hiring priorities. As businesses have faced rising costs due to inflation, supply chain disruptions, and interest rate hikes, many have scaled back marketing budgets to focus on essential operations. This has particularly impacted roles in brand marketing, PR, and traditional advertising, where spending is often seen as discretionary in times of financial pressure.
Additionally, the increased focus on digital automation and AI-driven marketing tools has led to fewer junior and mid-level marketing hires. Businesses are relying more on freelancers, agencies, or AI-powered solutions for content creation, SEO, and social media management, reducing the need for in-house teams. The rise of data-driven performance marketing has also shifted hiring priorities toward analytics and growth-focused roles, leading to a decline in generalist marketing positions. Overall, businesses are being more selective with hiring, prioritising ROI-driven marketing efforts while reducing headcount in non-essential areas.
Availability of Staff
The availability of staff, measured by the number of active candidates on CV databases, has declined over the past 12 months. This trend suggests that as the jobs market becomes more uncertain and competitive, many professionals are opting to stay in their current roles rather than actively seek new opportunities.
Several factors contribute to this shift in candidate behaviour. Economic uncertainty, rising living costs, and a slowdown in hiring across some sectors have made job seekers more risk-averse. Many professionals are prioritising job security, stability, and financial certainty over the potential benefits of moving to a new role. Additionally, with fewer job openings and longer recruitment processes, candidates may feel that switching jobs carries greater risk, particularly in industries where redundancies have increased.
Employers have also played a role in reducing candidate availability. Many businesses, aware of the talent shortage, are focusing on retention strategies such as salary increases, internal promotions, and flexible working arrangements to keep their top performers. As a result, fewer professionals are actively engaging with job boards or recruiters, making the talent pool more competitive for hiring managers.
This trend highlights the importance of proactive recruitment strategies. Employers may need to rethink their attraction tactics, offering not just competitive salaries but also clear career progression, job security, and strong company culture to encourage candidates to make a move in a more cautious job market.
Outlook
The UK jobs market in 2025 presents a mixed outlook across IT, Finance, and Marketing, with opportunities in high-demand areas but continued challenges in more traditional roles. Businesses are navigating economic pressures, technological advancements, and shifting candidate priorities, making attracting and retaining top talent more critical than ever.
Despite economic uncertainty, business confidence is improving, with a report from Lloyds Bank in December 2024 indicating that 70% of companies expecting higher turnover in 2025.
However, candidate availability is tightening, with more professionals choosing job security over career moves. Employers must be proactive in their hiring strategies, offering competitive salaries, flexible working, and strong career development opportunities to secure the best talent in a highly competitive market.
At CV Screen, we specialise in helping businesses navigate these market challenges by connecting them with the right IT, Finance, and Marketing professionals. Whether you’re looking to hire permanent, contract, or interim staff, our extensive candidate database and market expertise ensure you find the best fit for your business.