July 2025 Jobs Market: What South West Employers & Candidates Need to Know

July 2025 Jobs Market: What South West Employers & Candidates Need to Know

Based on the latest KPMG and REC, UK Report on Jobs

Hiring Activity Slows But Opportunities Are There

The July 2025 Jobs Report highlights a challenging but opportunity-filled market for South West businesses and job seekers.

👉 Permanent placements fell at their fastest rate in nearly two years, with the South of England reporting a significant decline.
👉 Temporary billings also contracted sharply, reflecting a slowdown in short-term hiring across the region.

Employers remain cautious, influenced by cost pressures and economic uncertainty. Many are hiring only when necessary and delaying long-term commitments.

Candidate Supply Is Growing - A Window of Opportunity

For the first time in over four years, candidate availability surged, especially in the South West. This is largely due to redundancies and increasing concerns over job security.

✔️ For businesses, this means a deeper talent pool and more choice when hiring.
Now is an ideal time to engage with the market and secure great people before conditions tighten again.

Sector Spotlight — Engineering & Construction Defy the Trend

Amidst a broader market slowdown, Engineering and Construction stood out for maintaining positive demand:

🔹 Permanent vacancies in both sectors increased slightly
🔹 Construction led temporary hiring growth despite other sectors like Retail and Secretarial seeing sharp declines

These sectors remain key hiring opportunities in the South West’s market.

Pay Growth Softens - Act Decisively on Top Talent

With improved candidate availability and reduced demand, pay growth eased in June, marking the slowest rise in four months.

👉 This presents employers with better negotiating conditions.
However, in high-demand areas like Engineering, competition for talent remains strong.

Our advice? Be proactive and decisive when you find the right fit as the market won’t wait forever.

What Should South West Employers Be Doing Right Now?

✅ Review your workforce plans - There’s talent out there, and it’s a great time to hire.
✅ Prioritise key sectors - Focus on Engineering, Construction, and other resilient areas.
✅ Move quickly on quality candidates - Market hesitancy doesn’t mean you should delay.
✅ Work with trusted recruitment partners - That’s where we come in!

Let’s Talk Recruitment

At Cathedral Appointments, we’re here to help you navigate the shifting market with honest advice, a trusted network, and a deep understanding of the South West.

Looking to hire or thinking about your next move?
📞 Get in touch - we’d love to support you.