Employment Hero, the global authority on employment, recently unveiled its inaugural global Annual Jobs Report, revealing the latest trends in the UK employment sector, with data showing that workers in London feel somewhat resilient in the face of a weak labour market.
The stuttering labour market
The October 2024 Budget has had a lasting impact on the UK employment landscape. Negative perceptions of the jobs market are now widespread among London workers, as 42% of those surveyed believe that the labour market is getting worse.
At the same time, the majority (51%) of London workers feel there is too much competition for jobs, the highest proportion of all UK regions surveyed. The capital’s tough jobs market could be demonstrated by Londoners being the least likely to change jobs, as 58% are settled in their current role and have no intention to move elsewhere.
More positively, however, Employment Hero’s latest platform data shows a slight uptick in the employment rate in London over the past year. The region’s employment rate for September is up 1.3% compared to August, while over the full year the rate is up 0.3%. At the same time, wage growth in London is up 4.1% compared to August, although this reflects a slight decrease of 0.2% on a year-on-year basis.
A bullish outlook
However, despite the challenging market conditions, London workers are less likely to be job-huggers than their regional counterparts. The data shows that 49%, the lowest proportion of all UK regions, are prioritising job security over ambition. This, however, is still a significant proportion and may reflect broader concerns that London workers have around the health of the economy.
Elsewhere, in the face of a deeply competitive jobs market, the majority (53%) of London workers are confident they could land a new job within three months. Looking ahead, they also have a positive outlook on the future of their careers, as 73% feel confident their skills are valuable in the evolving jobs market.
The majority (58%) of London workers believe their employer provides good training and upskilling opportunities, the highest proportion of all UK regions surveyed, while 79% feel confident about adapting to new technologies in their role.
Kevin Fitzgerald, UK Managing Director at Employment Hero said: “Across the UK as a whole, we are seeing workers job hugging in an attempt to weather the current storm in the labour market.
“The impact of the hike in employer National Insurance Contributions last year continues to have a ripple effect right across the economy. As we head towards the Autumn Budget, avoiding more tax changes that trigger knee-jerk reactions from businesses will be critical to rebuilding confidence.
“In the face of these headwinds, workers in London are displaying a healthy degree of cautious optimism. Alongside confidence in their ability to find a new job quickly, it’s also encouraging to see that London-based workers feel they have the skills to future proof their careers, and that they feel supported by their employers to develop.”
The UK 2025 data is drawn from aggregated insights from more than 350,000 small businesses and 2 million employees in Australia, New Zealand, and the UK, alongside a YouGov survey of 3,635 workers, the report charts a global workforce navigating a world fraught with conflict and unease, but also opportunity for growth and reinvention.
Leave a Comment