UK Job Market Struggles: Low Pay, Fewer Opportunities

UK Job Market Faces Unprecedented Struggles

The UK job market has become increasingly challenging, with hiring cuts, reduced salaries, and fewer opportunities for skilled workers. Amid economic uncertainty, job seekers are reporting extreme competition and a decline in well-paying positions.

Declining Job Vacancies and Rising Competition

According to a study by KPMG and the Recruitment and Employment Confederation, employer demand for permanent staff has contracted for 17 consecutive months. Job vacancies are at their lowest levels since August 2020, making it tougher for professionals—such as corporate strategists, graphic designers, and HR specialists—to secure stable roles.

• Highly trained professionals are struggling to find employment.
• AI replacing traditional roles in creative and administrative fields.
• Many graduates are underemployed and forced into low-paying jobs.

Impact on Business and Labour Market

The rise in economic inactivity—nearly 11 million working-age individuals—reflects a struggling workforce where employers prioritize cost-cutting over hiring and training. Many companies are reducing wages while expecting employees to handle expanded responsibilities.

Industry-Specific Challenges

• STEM graduates are facing diminishing job prospects despite government promises.
• Design and IT professionals report a sharp drop in hiring due to AI adoption.
• Workers in hospitality and retail struggle to secure even part-time positions.

What Lies Ahead?

With economic uncertainty continuing, job seekers and businesses alike must navigate a shifting landscape. Experts suggest reskilling, leveraging AI to complement rather than replace human roles, and advocating for stronger labour policies.