Recruiters Bulletin Oct 25

Standley Associates — Recruiters’ Bulletin (October 2025)

Headline: A cautious hiring market: employers tighten budgets while demand for specialist sales and technology talent stays resilient. 

Recruitment in the UK

Overview (headline)
UK hiring activity has softened through 2025 as employers weigh higher employment costs, inflation uncertainty and an autumn budget environment — however, demand remains patchy, with pockets of resilience in specialist sales, tech/SaaS and short-term contract hiring.

Permanent market

Moderation in permanent placements. Permanent appointments have fallen overall during 2025, though the pace of decline eased in recent months (per the KPMG/REC Report on Jobs). Employers are short-listing more cautiously and taking longer to make senior permanent offers.

Sector winners and losers. Technology (SaaS, cybersecurity), green energy and some engineering niches continue to recruit experienced sales and commercial leaders; retail, hospitality and some consumer sectors remain subdued.

Pay dynamics. Base salary growth has stalled in many market-regulated roles, and starting salary increases are modest; variable pay and performance-linked packages are increasingly used to bridge employer and candidate expectations. 

Temporary / contract market

Contract roles are showing pockets of strength. Contract and interim hiring picked up in some months (notably in professional services, tech, and project delivery), with September reporting stronger year-on-year contract activity in some industry trackers. Clients are using temporary/contract workers to control fixed costs while accessing specialist skills quickly. 

Why clients choose contract: budget caution, project work, delayed approval for permanent headcount and the need for fast ramp-up skills (e.g., cloud migrations, commercial transformation) are supporting temp demand.

Key market behaviours for recruiters

Speed + candidate experience win roles — clients reward agencies that shorten time-to-offer and present well-qualified, ready-to-move candidates. T

Niche specialism pays. Deep market knowledge (e.g., German-market sales for European expansion, SaaS account executives) continues to deliver higher placement success.

Hybrid/flexibility as a differentiator. Candidates expect hybrid working and clear career progression; agencies should factor this into candidate packaging.

Quick stats to cite in your collateral

Vacancies in the UK have fallen versus pre-2020 levels and vacancy counts were reported lower in recent ONS data. Office for National Statistics

Recruitment in the EU - Overview (headline)

Across the EU the labour market remains relatively tight but stable: unemployment is low by historical standards, though slight upticks and sectoral divergence are visible. Employers across Europe are balancing demand for skilled sales, digital and export-oriented roles with cost pressures and evolving hybrid work preferences. 

Permanent market

Low unemployment, steady demand. Eurostat reports the euro-area unemployment rate at around 6.3% (Aug 2025), with the EU average near 5.9% — levels that support continued competition for experienced hires in priority sectors. 

Regional variation. Northern and central European tech hubs and export-oriented regions are recruiting strongly (e.g., Berlin, Munich, Amsterdam, Stockholm), while parts of southern Europe still show higher unemployment and softer hiring.

Compensation & mobility. Cross-border roles (sales & export functions) increasingly carry location premium clauses and mobility support (relocation, language training).

Temporary / contract market

Project-led hiring & EU funding cycles. Short-term contract demand is buoyed by EU and national projects (digitalisation, green transition) requiring expert consultants and interim commercial leaders. Contract work is a standard route for firms to access specialised skills without long-term commitment. 

Key market behaviours for recruiters:

Multilingual capability is a key differentiator. German, French and English remain a common baseline for cross-border roles; additional EU-language skills are a competitive differentiator.

Compliance & mobility complexity. Recruiters must navigate local employment law, tax and social security differences for cross-border placements — clear candidate briefing and client guidance add value.

Data & benchmarking demand. European clients increasingly request up-to-date salary benchmarking and market mapping before engaging agencies.

Advisory and Mentor Support

If you are in recruitment and considering how to move your business forward. We work with SME recruitment entrepreneurs to help expand their services and operations, whether solo start-ups, micro-recruiters, or established brands.

If you're a startup, a stand-alone recruiter, an SME, or an established recruitment business, please reach out to us to find out more.

Please note the information contained herein is an aggregate of news stories, official statistical sources, and commentary by commentators and organisations widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to check the news reports and will provide monthly summaries of the trends