HR Recruitment in 2025

HR Job Market Insights – Q3 2025

The outlook for HR professionals remains mixed. Graduate and early-career roles have been hardest hit, with a 30% year-on-year decline in advertised entry-level HR positions (Ashdown Group Research, Q3 2025). The ONS reports that unemployment among graduates aged 21–30 has risen to 5.5%, while non-graduates in the same age group face a 7.1% unemployment rate — both reflecting the sharp fall in junior-level hiring (ONS Labour Market Data, June 2025).

Administrative HR tasks continue to be displaced by automation and generative AI tools. However, the narrative that AI is eroding HR altogether is reductive. In reality, automation is freeing up professionals to focus on higher-value, strategic work. According to Personnel Today, AI is now routinely used by in-house HR teams to streamline onboarding, performance tracking, and internal mobility, thereby significantly improving job satisfaction (Personnel Today, May 2025).

Meanwhile, mid- and senior-level HR roles have remained in demand, especially across organisational development, ER, and compensation functions. The London HR market, in particular, continues to show relative stability, underpinned by steady hiring in professional services and finance (GLA Labour Market Update, Q2 2025).

The longer-term threat lies in the erosion of the HR talent pipeline. With 160 applicants per graduate role, many early-career candidates risk being shut out of the profession entirely — a trend that may impact leadership succession planning in years to come (Ashdown Group Survey, 2025).

L&D Under Pressure, with AI Skills in Focus

Learning and development functions are also under pressure. A recent CBI survey found that 42% of employers have reduced training budgets to contain rising employment costs, placing additional strain on L&D teams (CBI Employment Trends Survey, 2025). At the same time, the need for AI and automation skills has become more pronounced.
Encouragingly, a LinkedIn Workplace Learning Report found that upskilling in AI, data literacy, and digital transformation is gathering pace, albeit unevenly across industries (LinkedIn Learning, 2025). The CIPD also reports growing demand for AI-literate HR professionals as organisations seek to blend technology with people strategy (CIPD Learning at Work, 2025).

Temporary Human Resources Hiring Up, Particularly in London

Short-term labour demand appears more resilient. According to the Recruitment & Employment Confederation (REC), temporary hiring has increased quarter-on-quarter, with London posting the strongest growth. The Ashdown Group has also seen an increase in demand for contract and temporary HR support, while economic volatility and cost pressures delay permanent hiring decisions. Interim HR professionals are increasingly being brought in to lead transformation, manage restructuring, or support compliance functions during periods of change.

A Gradual Progression Towards Growth

While headline data continues to reflect a challenging hiring climate, forward-looking indicators suggest signs of recovery. Interest rate cuts are expected to ease credit conditions and stimulate business investment, with HR, often a bellwether sector, likely to benefit early as organisations refocus on growth.

The Ashdown Group has identified early signs of an improving job market, with a gradual recovery in hiring activity likely to progress into Q4 2025. Demand for skilled HR professionals, especially those with strategic, digital, or change management capabilities, is leading the rebound.