Navigating the Cautious UK Job Market: Insights from the Latest S&P Global Consumer Sentiment Index
At Impact Recruitment, we monitor the economic landscape to better serve both our clients and candidates. The latest S&P Global UK Consumer Sentiment Index (CSI) report, based on data collected between 12th and 16th June 2025, provides crucial insights into the evolving sentiment across UK households, with significant implications for the labour market.
The data reflects a persistent pessimistic outlook on current and future economic conditions. While this broad sentiment paints a picture of caution, a deeper dive into the report reveals critical trends impacting employment, income, and spending habits that directly influence the recruitment sector.
Key Trends Impacting the UK Labour Market:
- Decline in Job Security: Perhaps the most notable shift from a recruitment perspective is the decline in job security sentiment. This marginal but notable insecurity follows a peak in job security in July 2024. This signals that individuals are becoming more cautious about their current employment stability.
- Slower Income Growth & Workplace Activity: Income from jobs and workplace activity grew in June, but not as quickly as last month. This slower growth results in weaker wage increases, which contributes to people feeling their money buys less.
- Rising Unemployment Concerns: The report matches other economic signs, showing that the official unemployment rate has been going up, hitting its highest level since July 2021 in April. This general trend makes people more worried about finding and keeping jobs.
- Differences Across Industries Appear: Interestingly, the report shows public and private sectors have different financial situations and access to credit. Private sector workers expect to be better off financially and found it easier to get credit. However, public sector employees expect their finances to worsen and found it harder to get credit when they needed it. This difference could make it harder for each sector to attract and keep good employees
Wider Economic Pressures and Their Ripple Effect:
The report also highlights that household finances are still strained by high inflation. The amount of cash people had for spending dropped the most in 15 months, forcing households to buy only necessities instead of non-essential items. This tight budget, combined with a greater need for loans to cover daily expenses (the highest in 10 months), indicates a tough time for consumers. Even with this higher demand for loans, many are finding it hard to get credit, which increases their financial stress.
What This Means for Recruitment:
For Job Seekers: As a result of people feeling insecure about jobs and having less money, candidates are likely to choose a stable and secure career path. We anticipate:
- Increased Demand for Stable Roles: Candidates may be less willing to switch to roles with perceived instability, focusing instead on organisations known for security and long-term opportunities.
- Focus on Compensation & Benefits: With less money buying less, candidates will highly value competitive salaries and comprehensive benefits, especially those that help their financial situation.
- Potential for Higher Application Rates: As job insecurity rises, we may see an increase in applications for available positions, potentially leading to more competitive hiring processes.
For Employers: Dealing with this cautious environment requires a tactical approach to talent attraction and retention. Employers should consider:
- Emphasising Stability and Company Culture: Highlighting the company’s financial health, long-term vision, and supportive culture can be a strong draw for security-conscious candidates.
- Reviewing Compensation Strategies: Regular benchmarking of salaries and benefits against market rates is crucial to remain competitive and address candidates’ financial concerns.
- Understanding Sectoral Details: For public sector employers, it’s important to understand the financial stress on potential hires to create appealing offers. Private sector employers might find talent more easily, but they should still be aware of the general market’s caution.
- Investing in Employee Wellbeing: Beyond direct compensation, initiatives that support employee financial literacy or provide access to support services could become more valuable.
Our Commitment – At Impact Recruitment, we are committed to being a strategic partner in this evolving landscape. We leverage these insights to:
- Advise Clients: Guiding employers on creating compelling job offers, highlighting company strengths beyond salary, and understanding candidate motivations in a cautious market.
- Support Candidates: Helping job seekers identify stable opportunities, refine their application, and navigate the current employment climate effectively.
The latest S&P Global CSI report reinforces a cautious outlook among UK households. For the recruitment industry, this translates into a market where job security, financial stability, and thoughtful compensation are increasingly critical factors for both attracting and retaining top talent. By understanding these dynamics, we can continue to make successful connections that benefit all parties.
If you have any questions regarding this report, please get in touch. Call us on 01604 239555 or email us at Info@impactrecruitment.co.uk
Read the full report here – https://www.pmi.spglobal.com/Public/Home/PressRelease/5e32963914844c9ebe7a3da016c591d8#:~:text=The%20CSI%20(a%20combination%20of,current%20and%20future%20economic%20conditions.
