London – UK Regional Labour Market Trends, July 2025
Steady Gains, Strategic Caution: Hiring Trends in the Capital
Key findings include:
- Professional vacancies in London are forecast to grow by 6% year on year in 2025.
- IT, Banking and Sales are the key drivers of hiring demand.
- Technology and Consumer Goods & Services are the fastest-growing sectors.
- Major employers like J.P. Morgan and Capgemini are significantly increasing hiring, while others reduce headcount.
DOWNLOAD THE REPORT
DOWNLOAD THE REPORT
Hiring Momentum Builds Across the Capital
Professional vacancies in London are projected to rise steadily in 2025, reinforcing the city’s position as the UK’s top employment centre. With a 6% annual increase in hiring, London is expected to account for over a third of all UK vacancies. June marked the most active month so far, with hiring up 13.2% from May, while April posted the steepest drop, down 12.9% month on month. In quarterly terms, Q1 2025 saw a sharp rise of 17.8% compared to Q4 2024, while Q2 declined slightly by 3.3%. However, vacancy volumes in Q2 still remained 8.4% higher than the same period last year.
Technology, Banking and Sales Lead Profession Growth
The IT profession continues to dominate the London hiring landscape, with vacancies forecast to rise by 17.2% and its market share expected to reach 27.2%. Banking follows as one of the strongest climbers, with a 14.4% annual increase in vacancies and growing employer appetite across risk, compliance and revenue-facing roles. Sales is also seeing renewed activity, with hiring set to grow by 11.8%, led by corporate (B2B) roles. Meanwhile, Real Estate is facing significant pressure, with vacancies forecast to decline by 19.5%, reflecting cooling investor sentiment and uncertainty in commercial property development.
Technology and Consumer Sectors Gain Market Share
London’s sectoral growth in 2025 is being driven by a resurgence in technology and consumer-facing businesses. The Technology, Media and Telecoms sector is forecast to rise by 11.4%, with tech-specific roles up 17.4% year on year. Meanwhile, Consumer Goods & Services is set for the largest percentage increase across all sectors, with a 34.6% uplift in vacancies as household spending and brand investment rebound. Banking is projected to post strong gains within Financial Services, although the broader sector remains steady. On the downside, Professional Services is forecast to decline by 9.4%, suggesting a slowdown in advisory, consulting and legal recruitment.
Firms Show Mixed Hiring Strategies
Hiring intentions across top employers in London paint a mixed picture. J.P. Morgan Chase is projected to increase recruitment by 22.9%, while Barclays is expected to boost hiring by over 50%. Tech consultancy Capgemini is one of the strongest performers, with a 57.3% rise in professional vacancies, signalling continued investment in digital transformation. Construction and infrastructure specialist Balfour Beatty is also forecast to expand hiring by over 40%. In contrast, Turner and Townsend is expected to cut roles by over 60%, indicating a more cautious stance in the infrastructure and property planning market heading into the second half of the year.
Get the full report to uncover where hiring demand is rising, which sectors are shifting, and how you can stay ahead of client needs.
All data featured in this report is available in the Vacancy Analytics platform, which is updated in real-time and allows for interactive analysis, giving you the power to drill into trends to identify the key insights you need to power your business.
If you would like to book a workshop with us to analyse trends in your market, you can schedule one here.
