Updated / 3rd September, 2025

Recruiters anticipate vacancies but talent supply an issue

Recruiters expect vacancy levels to rise in the months ahead but warn that talent supply remains their biggest challenge, according to the Employment and Recruitment Federation (ERF).

More than half of recruiters (55%) anticipate an increase in vacancies over the next three months, compared to 12% who expect a decline.

While demand remains strong, confidence about candidate supply is weaker, with only 39% projecting the pool of qualified candidates to grow.

The ERF's Market Monitor, supported by ICON Accounting, found that hiring activity in July was largely stable.

Permanent and contract roles saw little overall movement, with most firms reporting no change in vacancies or placements compared to June.

Temporary hiring showed more variation, with roughly one in three firms recording growth in vacancies and placements, although about one in five reported a fall.

The Monitor findings have been published against a backdrop of record national employment, with 2.8m people now in work and the unemployment rate at 4.9% in July.

"The July Monitor shows a steady market, not slowing," said Siobhán Kinsella, president of the ERF.

"Employers are still hiring and expect more vacancies in autumn, but talent supply remains the pinch point. Demand is strong, it’s access to skills that continues to test the market.

"As Budget 2026 approaches, we need policies that support training and ease cost pressures so firms can keep delivering jobs.”

The Labour Market Monitor provides real-time insight into recruiter activity, tracking sentiment, vacancies, placements and salary trends.