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Latest figures show that the number of new job postings rose for the first time since June 2024.

And, in January 2025 job postings increased by 7.2% compared to the previous month, with employers coming back to the job market despite the economic challenges.

However, the Recruitment and Employment Confederation (REC)/ Lightcast monthly Labour Market Tracker, states that while this is ‘a bright spot’ in a week of difficult news about the UK economy, it doesn’t necessarily indicate a broad or fast recovery.

REC Deputy Chief Executive Kate Shoesmith, explained, “While there are tough conversations going on in boardrooms across the country, today’s report suggests it is too soon for gloom about the UK economy’s prospects overall for 2025.

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“The increase in job postings is a clear sign that employers will hire when they need to. A 34.4% increase in new jobs signals a solid rebound in demand, showing that businesses remain resilient, despite both domestic and international headwinds. We will look closely in the coming months to see if we are looking at a broader turn.

“The government’s increased focus on economic growth is encouraging, but fostering business confidence requires tangible actions, not just rhetoric. Ongoing fiscal uncertainty, looming national insurance increases, and a potentially burdensome employment rights framework may yet dampen momentum. For real growth, businesses need a clearer strategy on how government industrial policies will truly drive economic progress.”

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