Job Market in the UK 2025-26

• The UK has around 1.2 million job openings with a strong demand in in-demand sectors.
• South East, like Winchester, Manchester, and Aberdeen are some of the best places to work in the UK with high employment rates
• In the first quarter of 2025, the economy grew by 0.7%, thanks to a rise in service outputs and production.
• The government has introduced a plan to cut net migration by around 100,000 each year, with new visa rules set to start in late 2025.

UK Job Outlook

The UK job market in 2025 is going through some changes. While there are still good long-term job options out there, hiring is slowing down in various sectors. Recent HMRC data shows that the number of people on payroll dropped by 109,000 in May 2025—the biggest drop in more than ten years. Still, there are solid opportunities for skilled workers, especially in areas like clean energy, innovation, and digital tech.

The unemployment rate has ticked up to 4.6%, the highest it's been since 2021, which shows some shifts in the job landscape. On the bright side, there are over 1.44 million job vacancies in the UK, with high demand in healthcare, IT, education, and green industries. Cities like Manchester, Bristol, and Edinburgh are still busy job markets for both locals and those from abroad.

Here are some key factors affecting the UK job market in 2025:

• Wage Growth: Average pay is only up by 5.2% (not including bonuses).
• Economic Changes: Increases in national insurance and global tariffs are making companies more cautious about hiring.
• Sector Changes: More growth in clean energy, AI, and research, while retail and manufacturing are shrinking.
• Hiring Hesitation: 33% of businesses expect to cut staff, and 35% have stopped hiring for now.
• Skill Gaps: There's still a high demand for nurses, teachers, IT specialists, and engineers.

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In-Demand Jobs in the UK

The UK job market is still looking for skilled workers, especially in areas like healthcare, tech, engineering, and education. If you are considering moving here for work, jobs on the Shortage Occupation List are a good option since they have quicker visa processing and lower salary requirements for foreign workers.

Occupations	Average Salaries per year
Engineering	£43,511
IT	£35,000
Marketing & Sales	£35,000
HR	£32,842
Healthcare	£27,993
Teachers	£35,100
Accountants	£33,713
Hospitality	£28,008
Nursing	£39,371

 

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Top in demand occupations in the UK

 

Workforce requirements in different cities in the UK

The demand for skilled workers in the UK job market differs from one city to another. Factors like the types of industries in the area, how well the economy is doing, and how many businesses are around play a major role in this category.

The table below has the list of the top 10 cities in the UK along with the average salary offered and the employment growth rate:

City	Average Salary	Employment Growth rate
Milton Keynes	£38,613	3.90%
Oxford	£36,692	16.40%
York	£32,533	2.90%
St. Albans	£46,551	5.30%
Norwich	£31,559	6.70%
Cambridge	£38,666	4.20%
Colchester	£34,694	-2.80%
Aberdeen	£32,239	-6.20%
Bristol	£34,215	8.70%
Coventry	£33.887	1%

 

In-demand skills in the UK

The job market in the UK is changing fast as we head toward 2025. Employers are on the lookout for people who have a mix of technical skills and soft skills. Some key fields where jobs are available include technology, marketing, finance, healthcare, and leadership.

Given below is a breakdown of the skills that are in high demand now:

Technology Skills	Marketing Skills	Finance & Accounting Skills	Healthcare Skills	Leadership & Communication Skills
Artificial Intelligence (AI) & Machine Learning	Digital Marketing & SEO	Financial Analysis & Forecasting	Telemedicine & Digital Health Proficiency	Strategic Decision-Making
Cybersecurity & Information Security	Content Creation & Management	Block chain & Digital Payment Systems	Patient Management Systems	Effective Communication
Cloud Computing (AWS, Azure, Google Cloud)	Social Media Strategy	AI-Driven Financial Modeling	Nursing & Clinical Care	Team Leadership & Collaboration
Data Analysis & Big Data Analytics	CRM & Email Marketing	Regulatory Compliance & Risk Management	Mental Health Support	Emotional Intelligence
Software & Application Development	Marketing Analytics Tools	Taxation & Auditing	Healthcare Data Analysis	Adaptability & Problem-Solving

 

Note: These skills are important for anyone wanting to stay ahead in the UK job market. Companies want to see both technical know-how and good people skills to help them stay innovative and efficient.

 

Remote work in the UK

Remote work has made its mark in the UK's job market, with many companies offering flexible options. Recent stats show about 40% of workers in the UK are doing some form of remote work, with 14% working fully from home and 26% using a mix of home and office.

This trend is especially strong in fields like tech, finance, and professional services, where digital tools make working from home easier. On the other hand, jobs in healthcare, manufacturing, and education usually require people to be on-site because they need hands-on work.

A recent CIPD survey shows that 78% of bosses are on board with remote work for suitable positions. Sectors like tech, finance, education, and consulting are at the forefront of these flexible options, allowing international candidates to work from other countries before moving.

Companies have seen the perks of flexible work, like happier employees, lower costs, and better productivity. As a result, many have changed their office setups to support hybrid work, with more than half of businesses updating their work spaces since the pandemic.

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UK Government Policies & Initiatives

The UK government has introduced a set of policies to boost the economy, create jobs, and support workers' rights. These plans aim to encourage new ideas, help important industries, and make sure the job market is fair and inclusive.

Given below are the six main policies and initiatives taken by the UK government to support its employees:

1. 10-Year Industrial Strategy (IS-8)

This strategy is all about boosting eight sectors that are expected to grow: advanced manufacturing, clean energy, creative industries, defense, digital tech, financial services, life sciences, and professional services. The goal is to double investments in advanced manufacturing to £39 billion and clean energy to over £30 billion each year by 2035.

2. Employment Rights Bill

This bill brings in important changes to workers' rights, like protections against unfair dismissal, flexible work options, and better parental leave. It aims to update employment laws to better fit how work is changing.

3. Get Britain Working White Paper

The target here is to reach an 80% employment rate by tackling economic inactivity and supporting people with health issues. There’s also a £240 million plan to upgrade job centers and boost mental health support.

4. Skills and Apprenticeship Investment

There’s £275 million set aside to improve technical training and apprenticeships, especially in engineering, defense, and advanced manufacturing. This includes creating new technical colleges and short courses in AI and digital manufacturing.

5. Energy Cost Reduction for Businesses

This plan is to help cut electricity costs for over 7,000 businesses that use a lot of energy, like those in steel and ceramics. The aim is to make them more competitive and help create jobs in manufacturing.

6. Support for Disabled Workers

The government is committing £1 billion each year by 2029-30 to help disabled individuals and those with health issues find or return to work. The focus is on providing strong employment support and breaking down barriers to getting jobs.

Employee Benefits in the UK

The UK government offers several important benefits to support workers:

• Statutory Sick Pay (SSP): You can get £116.75 a week for up to 28 weeks if you are off sick.
• Maternity Pay: For the first 6 weeks, you get 90% of your average weekly earnings, and then £172.48 per week for the next 33 weeks.
• Paternity Pay: You can receive £172.48 a week for up to 2 weeks.
• Adoption Pay: This is the same as maternity pay.
• Shared Parental Leave: Parents can share up to 50 weeks of leave and get paid for 37 weeks of it.
• Holiday Entitlement: You are entitled to 28 days of paid annual leave, which includes public holidays.
• Minimum Wage: The minimum wage is £11.44 an hour for workers aged 23 and older.
• Auto-Enrolment Pension: Employers need to offer a workplace pension scheme with minimum contributions.

Note: These benefits aim to support wellbeing, maintain a good work life balance, and provide financial security for employees in the UK.

 

Job Opportunities in the UK: Challenges for Job Seekers

There is a lot happening in the UK job market, especially in fields like IT, healthcare, engineering, and education. But for many job seekers, particularly those from abroad, landing the right position can be tough.

Given below are some of the most common challenges faced by job seekers in the UK:

• Visa Sponsorship Issues: Not every employer is willing to sponsor foreign workers because it can be expensive and comes with some legal responsibilities.
• High Competition: Sought-after job sectors draw in many local and international applicants, making it a crowded market.
• Foreign Qualification Recognition: If you earned your degree or certifications outside the UK, you might need to get them validated (like through UK ENIC) before employers accept them.
• Lack of UK Work Experience: Many employers tend to favor candidates who know the local work environment and have experience in the UK.
• Skills Mismatch: Some job seekers might not have exactly what employers are seeking, even if they have relevant backgrounds.
• Location-Based Gaps: Major cities like London and Manchester usually have more jobs than smaller towns or rural areas.
• Complex Hiring Processes: Tailoring your CV, writing cover letters, and navigating various job sites can feel a bit overwhelming.
• Language & Communication Barriers: Being able to communicate clearly and understanding British workplace norms is crucial, especially for those who are not native English speakers.

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How to navigate the UK Job Market successfully?

Finding a job in the UK can be exciting but tricky, especially if you are coming from abroad. To increase your chances, it helps to plan ahead and know what employers are looking for. Whether you are a skilled worker, fresh out of school, or changing careers, here are some tips to get you started.

• Understand the UK Job Market: Look into growing industries like healthcare, IT, engineering, and finance. The UK Shortage Occupation List can help you spot jobs that might offer visa sponsorship.
• Update Your CV: Make sure your CV is clear and to the point, showcasing your relevant skills and achievements. Skip the personal details and photos, and include a strong personal statement.
• Target Visa-Sponsoring Employers: Check out the GOV. UK list of employers who can sponsor visas and look for jobs that offer Skilled Worker roles.
• Upskill if Needed: Consider getting certifications that match UK standards, like PMP, ACCA, or IELTS, especially if you are switching careers or improving your qualifications.
• Network and Use Job Portals: Join LinkedIn groups, participate in online job fairs, and sign up on popular UK job sites like Reed, Indeed, etc. to widen your job search.

With the right planning and tools, finding work in the UK can be easier and more rewarding. Y-Axis is here to help you from evaluating your profile to guiding you through the visa process and job hunting.

 

UK Job Market Summary

The UK job market has plenty of options in fields like healthcare, IT, finance, education, and construction. There are usually more than 2 million job openings, showing a real need for workers from the UK and abroad. Cities like Oxford, Milton Keynes, and York are seeing the most job growth. If you are a skilled worker, jobs on the Shortage Occupation List can help you get a visa more easily. Right now, digital skills, flexibility, and work experience are really important, making the UK a great place for people looking for jobs.

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