Recruitment trends in 2025

Recruitment trends 2025

• HR are taking advantage of AI ​- Ever since ChatGPT launched onto the scene, AI has permeated into every facet of our existence. But that was just the beginning. In 2025, HR has well and truly taken advantage of AI to streamline hiring, improve candidate experiences and improve hiring accuracy. 
• Investing in new skills for employees – Amid a widening skills gap employers are turning to upskilling and investing in their people, especially since the introduction of AI. Through performance management software, employers are tracking their people’s performance and improving where possible. 
• Tackling bias in recruitment remains a priority – Removing bias from recruitment processes has always been a puzzle for HR, yet in 2025 a reported 96% ​Of HR professionals are actively looking to HR tech to finally bring a solution. 
• Incoming Employment Law impacts​ – Since the announcement of changes to Employment Law, much has been made of how incoming changes are set to impact HR. 
• Employer brand – With the job market almost saturated with candidates, employers are turning their focus to hiring right first time. How? Many are consistently applying a comprehensive employer branding strategy to attract the candidates they need and stay ahead of competition.

The state of the UK economy

The fact that the UK economy isn’t firing on all cylinders won’t be news to anyone, and the UK economy still continues to stutter. What may be news is the 37th consecutive quarterly vacancy decrease with vacancies decreasing in 16 of the 18 industry sectors…​

The UK market in facts and figures​

• The estimated number of UK vacancies dropped by 44,000 [5.8%] on the quarter to 718,000 between May and July 2025​
• Total estimated vacancies were down by 145,000 [16.8%] in May to July from 2024 numbers…​
• The largest volume percentage decrease in vacancies was 17.6% in the arts, entertainment and recreation sector​
• The largest percentage decrease in vacancies was in the manufacturing industry, which was down by 26.6%​
• The largest volume decrease in vacancies was in the wholesale retail trade, repair of motor vehicles and motorcycles – vacancies fell by 10,000 on the quarter…
• The number of unemployed people per vacancy was 2.3 in April to June 2025 ​
• The accommodation and food services sector fell by 7,000 vacancies​
• The largest quarterly decrease in vacancies was in businesses with 10 to 49 employees, which was down 14,000 [11.7%] vacancies​
• The largest percentage decrease in vacancies was for businesses with one to nine employees, which increased by 35,000 [24.4%]​

All stats – ONS 

Given the UK’s current economic predicament, we can sympathise with 57% of our webinar attendees who have found talent attraction to be their biggest hiring challenge in 2025.​ However, the economy isn’t a reason for HR to reach for the panic button: The economy is beyond anyone’s control. Instead, in the coming months, HR must look at the elements they can control… ​

Pivoting to a marketing-based talent attraction approach should be HR’s number one priority. Get to know the talent you want and get the messaging right to best position your brand. HR is selling – candidates are buying.​

HR must ensure the talent it’s attracting remains fully boarded. ​What do we mean by this?​ Onboarding well MUST be a 2025 priority. ​

HR is one of the leaders in AI adoption – it must maintain this spirit of adventurism and increasingly look to onboarding technology. In 2025, to onboard well, onboarding tech must play a part in new starter integration. If it does, HR will witness lower turnover and improved retention. Such tech is available – the question is – will HR use it?

AI in HR

AI is hardly a new trend, it’s shaping the global narrative and has ushered in a new era. But the myriad of ways HR are adapting to it, demonstrates a willingness to embrace this new development.​

​Here is a flavour of what AI means for HR…

• Sector disruption: 46%​ of tasks in administrative sectors could be potentially replaced by AI – Goldman Sachs
• New skills currency: Around 7% of existing UK jobs could be displaced over the next five years, rising to around 18% after 10 years – Forbes 
• Salary fluctuation: AI has potentially caused​ a 50% to 70%​ decrease in blue-collar wages – Forbes
• Forced retraining: 1.5 million ​jobs in England are at high risk of AI-influenced automation​ – ONS

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“AI is having an effect and will continue to affect the workforce. There’s no getting away from that. But how can we react to that? That’s the key. The answer? To retrain, reskill, and upskill where necessary”

Dean McGlone, Talos360

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So, what do HR professionals think about the AI in HR revolution? Is it a potential obstacle or a unique opportunity? 

• 57% of HR professionals said they saw AI as a unique opportunity​
• Just 5% of HR professionals said it was an obstacle and ‘damn scary.’​
• 38% of HR professionals said they remained on the fence

HR are leading the way in AI adoption

According to HR magazine, 68% of HR professionals use AI at work, making them the second AI-adopting sector among 12 other industries and professions. ​

The same study noted that HR professionals reported time savings of over three hours per week, with 89% of AI users maintaining that AI has improved HR standards. ​

‘It’s not surprising that HR is leading the way with AI adoption in the workplace. This makes the sector well-positioned to implement AI tools that enhance recruitment and workforce management.’​ Charles Butterworth​ Managing Director, Access People ​

​Most impacted areas:

• Data​ – 47% of HR professionals use AI for gathering and analysing data​
• ​Idea iteration​ – 46% reported that AI helped them generate ideas​
• ​Reduced workloads​ – 67% said the biggest benefits of AI were reduced workloads​
• ​Increased productivity​ – 49% maintained the use of AI had improved their productivity​

With AI becoming more entrenched within HR processes, we recently asked our webinar attendees…

‘If AI could share real-time candidate data to help you make better hiring decisions faster, would you use it?’

• 81% of HR professionals said, ‘Yes, but we’d need more info.’
• 26% of HR professionals said, ‘In a heartbeat, yes.’​
• 3% of HR professionals said they weren’t sure.​
• Just 1% of HR professionals said, ‘No. I’m a traditionalist!’​

How are HR using AI in 2025?

HR is leading the charge in AI adoption to ensure they hire the best. 

• 77% of recruiters think AI can now elevate the candidate journey
• 40% of HR professionals are looking to enhance their recruitment process by utilising an interview co-pilot
• 14% of HR are now actively using AI to streamline their recruitment.
• 30% of HR professionals are looking at AI to improve their job ad writing
• 55% of recruitment professionals are actively looking to implement AI into their business and recruitment processes
• 20% of hiring managers are looking at AI-reporting ​to improve their recruitment

What challenges are HR facing  with AI adoption?

Despite HR leading the race to adopt AI and implement next generation tools into their hiring processes, many HR professionals have voiced their AI challenges in 2025. 

• 63% of recruiters said they’d like to use AI to streamline recruitment – but don’t know where to begin
• 18% of HR professionals remain sure about AI and don’t overly trust it

Investing in new skills

As we arc toward 2026, and the growing influence of AI, the investment in new skills is gathering pace.​ Upskilling employees, reskilling employees at risk from AI, and a renewed focus on soft skills, demonstrate a desire to attract the right talent…

• 44% of talent wouldn’t accept a job without opportunities to develop future-ready skills – Randstad
• Businesses in all sectors are investing in skills – more than 45 billion a year ​- Recruitment & Employment Confederation

Why new skills?

More and more businesses are turning to new skills investment because, rightly, they’ve recognised a widening skills gap.

Indeed, according to MuchSkills, 44% of businesses realise that the pace set by new technologies, and AI, in particular, there’s now a yawning skills gap. And the only way to bridge that is to invest in reskilling quickly. ​But it’s not just new technologies and AI forcing businesses’ hands. ​

According to the Organisation of Economic Co-operation and Development, poor management costs the UK a staggering £84 billion a year. ​

The only way to stall this is to invest. Too often, managers are hung out to dry, especially the ‘reluctant’ ones. CEOs are beginning to understand that for their business to be successful, they need successful managers. 

Navigating bias in recruitment 

​Removing bias in recruitment has always been considered an impossibility. However, with the continual development of HR tech, HR is beginning to see light at the end of the tunnel. Hiring the right talent, inclusively, is looking like a real possibility. 

• 96% ​Of HR professionals are actively looking to improve unbiased recruitment with HR tech
• 27%​ Are now using AI to help remove bias in their recruitment entirely
• 60% ​Of businesses are looking to minimise bias in their recruitment
• 70%​ Of recruiters want to remove bias from their interviewing processes
• 98%​ Of HR professionals think an unbiased recruitment strategy is important

What challenges are HR experiencing?

• 39%​ Of employees said they experience bias frequently ​- Deloitte
• 63% ​ Of UK jobseekers still face discriminatory or biased interview questions​ – CIPD
• Less than 18% ​of UK recruiters make efforts to remove bias through testing the words of job ads​​ – CIPD

How can advanced recruitment tech support recruitment bias?

• 93%​ Of companies are expected to invest in recruitment tech​ – SelectSoftware
• 50%​ Of HR professionals agree that tech is maximising recruitment​- Talos360

Employer brand 

More and more companies are understanding that a company’s employer brand shouldn’t be a siloed operation.​ Instead, it should be synchronous with the following:​​

1. Personal brand
2. Corporate brand

Together, these aspects make for a formidable employer brand that has far more chance of attracting the right candidate every time…​

• Employer brand: Improves candidate attraction ​
• Personal brand: Amplifies the employer brand via the individual ​
• Corporate brand: Builds and reinforces employer brand, driving productivity and retention​

Employer brand trends in 2025

• 69% of candidates would apply to a company whose employer brand was being actively managed​ – Allegis group
• 77% of businesses acknowledge that their employer branding is becoming more important to HR’s overall strategy​​ – HR Research
• 37% of businesses feel a careers site is giving them a competitive edge in the talent market​ – Talos360
• 28% of organisations have a consistently applied and comprehensive employer branding strategy in place​ – HR Research

Employer brand challenges in 2025

• 50% of businesses are struggling with employee retention​ – HR Research
• 40% of businesses still lack a formal branding strategy – HR Research
• 32% of businesses have strategies that are inconsistently applied ​- HR Research
• Only 36% of businesses dedicate sufficient resources to developing an intentionally cultivated employer brand​ – HR Research

Looking ahead to 2026

Embracing AI

In 2026, HR’s first AI-access point will be to simplify its advertising process.​ Starting with AI-powered job descriptions, the best ATS will integrate with ChatGPT-4, affording HR more time, conserving energy to focus on the other countless aspects of recruitment.​

​Fact: 40% of HR professionals are already using AI to streamline their hiring process – HR Grapevine

Utilising AI data-power

With the ONS reporting 37th consecutive drop in vacancies, businesses, now more than ever, need to pinpoint the right candidates.​ In 2026, let Talent Analytics do pinpointing legwork for you with AI- powered analytics.​

How?

• Through market data – Helping HR understand how many qualified candidates for specific roles are in a specific geographic area.​
• Through diversity insights – Presenting HR with diversity breakdowns in its available talent pool.​
• Through job board insights – Presenting HR with the best job boards for specific roles and locations to optimise recruitment spend and narrow down candidates.​
• Through salary benchmarking – Aiding HR to make competitive offers thanks to data-backed salary benchmarks.

Embedding AI interview co-pilot​

With changes to Employment Law incoming, hiring right first time will become an absolute necessity in 2026.​ Welcome to AI-powered interview insights that will transform video interviewing, allowing HR to…​

• Auto-record your interviews​
• Request an instant transcription​
• Create an interview summary​
• Search the interview for a particular comment/conversation​
• Monitor talk time​
• Tap into timestamped recordings​
• Evidence fair hiring​
• Collaborate on feedback with hiring managers​
• Reduce the risk of poor hires​
• Hire right first time​

Talos360 market insight – By improving the hiring process with Interview Insights, you can decrease the likelihood of hiring employees who are a poor fit.​

Letting data enable decisions

In 2026, the secret to hiring right first time will lie in advanced reporting.​ With it, HR can look to improve its recruitment processes in real-time.​

In 2026, HR will use data to:​

• Improve hiring outcomes – Data-driven hiring decisions will result in better quality hires.
• Advance talent acquisition strategies – Understand the most effective talent sourcing methods.​
• Increase hiring efficiencies – Identify blocks in your process to reduce time-to- hire metrics and improve ROI.

• HR analytics drives 37% more innovations and 26% more adaptability – OnHires
• Using HR analytics improves the quality, cost, and time of hiring by​ 48%​ – OnHires
• HR analytics help companies engage and retain​ 14%​ more employees​ – OnHires

Eradicating bias 

We know that HR are intent on counteracting conscious and unconscious bias. In 2026, more and more HR professionals will turn to technology to facilitate fairer hiring…​

For example, utilising candidate assessments, balanced scorecards and unbiased recruitment reports, HR can effectively reduce…​

• Ethnicity bias​
• Age bias​
• Socioeconomic bias​
• Gender bias​
• ​Protect employer brand​
• Practice fairer hiring​

Recruitment in 2026 will be about promoting merit-based recruitment.

Talos360 market insight – If HR is serious about minimising the impact of conscious and unconscious bias, promote your talent acquisition on merit-based skills and aptitude.

Employment law impacts on HR in 2025

Last quarter, we updated on the incoming changes to the UK’s Employment Bill. After its third reading in the House of Commons, here are the latest developments according to Keely’s LLP.

1. Unfair dismissal rights

Current: Under current Employment Law, employees can only pursue claims for unfair dismissal after two years. ​

2024 proposed change: However, incoming changes to regulations will change this to a ‘day one right.’​

2025 update: Employers may still be able to dismiss fairly with a ‘light touch’ process during a probationary period. It’s thought this will be somewhere between 3 and 9 months.

2. Redundancy protections 

Current: Companies proposing 20 or more redundancies within 90 days must go through a collective redundancy consultation.​

​2024 proposed change: Redundancies ‘site by site’ will be abolished – employers will have to count the redundancies across their business as a whole. ​

2025 update: In a recent concession to businesses, the government might be backing down on abolishing the site-by-site approach, settling, instead, for a higher overall number of affected employees. In addition, the penalty for skipping proper consultation is set to double from 90 to 180 days’ pay.​

3. Statutory sick pay

Current: Under the current rules, SSP is only available to employees earning above the Lower Earnings Limit (currently £123 a week), and only from their fourth full day of sickness absence. ​

2024 proposed change: The Bill proposes to remove the above requirements so that SSP is available to those earning below the Lower Earnings Limit and is payable from the first day of sickness absence.​

2025 update: The government’s latest proposal to SSP means employees will either receive 80% of their average weekly earnings or the current rate of SSP, whichever is lower. ​

4. Fairer treatment for zero-hours and agency workers​

Current: Zero-hour contracts currently provide little in the way of assurance for workers who operate under these types of contracts. However, there remains a requirement to work when called upon.​

2024 proposed change: The initial proposals called for a permanent end to the notion of zero-hour contracts. Workers would have a right to guaranteed hours, where an offer of work must reflect the reference hours. In addition, workers must be given a guaranteed hours contract with a reasonable notice of shifts and cancellations. ​

2025 update: Compensation for workers will be expected if shifts are cancelled last minute. In addition, these rules will be extended to agency workers, with agencies and end-users responsible for ensuring these new conditions are met.

5. National leave and pay 

This is a new addition, giving a day-one statutory right to leave and pay for parents of babies requiring neonatal care…​

 ​Note: This is set to come into force by 6 April 2025. ​

​This new statutory right sits alongside existing statutory rights (like maternity and parental leave), and will guarantee:​

• Up to 12 weeks of leave and pay
• Within the first 68 weeks after birth (if eligibility criteria are met) ​
• Where babies need a continuous stay of seven days or more in hospital in the first 28 days of their life ​

6. Fraud

Another addition to other incoming Employment Law changes.​

 Note: This is set to come into force by 1 September 2025. ​

​Large organisations will be criminally liable if an employee, agent, subsidiary, or other associated person commits fraud intending to benefit the organisation unless the organisation has reasonable processes in place to prevent it.​

​Large organisations are those meeting two or more of the following criteria: ​

• ​A turnover exceeding £36 m​
• A balance sheet total over £18 m​
• More than 250 employees​

​This will work like the rules on Bribery or Tax Evasion.

How can HR get ahead in 2026

In 2026, hiring right first time will become companies’ number one priority. With more candidates, and less jobs to go around, employers must do all they can to find the right employee.​ The incoming changes to Employment Law demand HR develop a new approach. An approach, it seems CEOs and HR are already intent on taking, namely…​

• Utilising AI​
• Investing in new skills​
• Hiring inclusively​
• Developing a strong employer brand​

At Talos360, we can help your business get to grips with all four of these developing trends.​ Thanks to our market-leading, award-winning autonomous recruitment tech, more and more businesses are utilising AI to hire more inclusively. With analytics that can pinpoint the right candidates and an interview co-pilot that can help businesses hire right first time, our AI-first HR tech is leading the way.

Furthermore, Talos360, is now a full Employee Lifecycle solution: No other ATS provider will accompany your candidates from point of application to immersed employee. No other ATS can manage your employer brand with a bespoke careers site, while maintaining it with our performance management software.​