March's Employment Data

Information to support your recruiting decisions

UK Labour Market Update – What March 2025’s Stats Mean for Local Employers

The latest ONS Labour Market Report (March 2025) has landed — and while statistics might not be everyone’s cup of tea, this snapshot tells a story every employer needs to hear.

If you’re running an SME in Staffordshire or Cheshire, these shifts in employment, pay, and workforce participation could have a real impact on your hiring plans, candidate availability, and ultimately your bottom line. So, we’ve done the number-crunching for you and translated it into plain English — with a few insights to help you stay ahead.

Employment Is Up, but So Is Competition for Talent

The employment rate has nudged up slightly to 75%, while unemployment has held steady at 4.4%. That sounds positive, right?

Well, yes — but it also means the pool of available candidates is tight. More people are in work, which is great for the economy, but it also means your next hire might be happily employed elsewhere. So, if you’re recruiting this spring, you may need to:

• Move faster on decisions
• Focus on passive candidates
• Revisit your job offers and salary benchmarks

Tip: If it’s been a while since you reviewed your salaries or benefits, now’s the time. Our salary benchmarking service might just be your secret weapon.

Wages Are on the Rise – Are Yours?

Pay is growing too. Average earnings (excluding bonuses) increased by 5.9%, with real-terms pay (adjusted for inflation) up by 2.2%. In plain terms: people are feeling a bit better off, and expectations are shifting.

If you're finding candidates pushing back on offers or asking for more flexibility, it’s not you — it's the market. Ensuring your packages are competitive is key to attracting (and keeping) top talent.

Economic Inactivity Is Falling (But Still a Challenge)

The number of people classed as economically inactive (those not working or job hunting) dropped slightly to 21.5%, but it's still a large part of the working-age population.

What does that mean for you? It means there are still skilled individuals out there who might return to the workforce — but only if the right opportunity, flexibility, or support is in place.

Now’s the time to think about:

• Part-time or flexible roles
• Return-to-work programmes
• Adjusting job specs to tap into underutilised talent

Regional Watch: Local Trends Matter

The stats show big regional differences. For example:

• South West: highest employment
• London: highest unemployment
• Northern Ireland: lowest unemployment, but highest inactivity

So don’t let national trends dictate your entire strategy — what’s happening in Staffordshire or Cheshire could look quite different. That’s where working with a local recruitment partner can make all the difference.

So, What Should Employers Do?

If we had to summarise it in three words: be proactive now.

• Stay competitive on salary and benefits
• Be open to new ways of working
• Know that good people are out there — but you’ll need a strategy to find (and keep) them

And if you're not quite sure where to start, don’t worry — that’s where we come in. Whether you need help filling a permanent role, sourcing temporary staff fast, or just want a friendly chat about what the labour market means for your business, we’re here.



Let’s Talk Recruitment

Appointments Personnel have been supporting local employers for over 25 years. We understand the market — and more importantly, we understand people.

Give us a call or pop in for a coffee and a chat. Because navigating the labour market is much easier when you’ve got someone in your corner.