A message from our CEO...
January – March 2025
As we enter early Spring here in the UK, the lighter days bring a sense of renewed energy. There’s often a collective sense that the world feels a bit more optimistic. But the reality, particularly in the global economy, remains far from certain.
That said, Q1 of 2025 has been a welcome relief for the recruitment industry overall. From mid-2023 through the entirety of 2024, we experienced a market I’d confidently describe as unprecedented in my 22 years in the industry. Low attrition, combined with widespread global uncertainty, led many companies to streamline their workforces in an effort to maintain profitability.
Looking back, I believe the market turned a corner around October 2024. While things began to steady toward the end of the year, it’s only now — in early 2025 — that we’re seeing genuine momentum return. In terms of hiring data, the market is much more aligned with what we saw in January 2023. That’s not to say everything has changed dramatically, but there are some clear and prominent global trends emerging:
Low Attrition: This has led to a phenomenon I’d call “people stagnation” — where the lack of movement results in fewer fresh perspectives and limited opportunities for existing employees.
Employee Boredom: While employees can keep their heads down for a while, boredom inevitably sets in when roles remain static for 12–24 months. The appetite for new challenges is returning.
HR Change & Transformation: This ongoing theme shows no signs of slowing down. Organisations continue to refine and evolve their HR functions, particularly with AI playing an increasing role. We expect this to be a defining focus throughout 2025 and into 2026.
Fewer Recruiters: There’s a noticeable drop in the number of recruiters — both in search firms and internal TA teams — resulting in leaner recruitment functions. While some might see this as a good thing, it creates challenges during busy periods. We anticipate a rise in RPO demand as companies look to stay lean without adding permanent headcount.
The market remains tricky for more experienced candidates. Right now, mid-level HR roles still form the “engine room” of the broader recruitment landscape. But I expect this to shift as M&A activity — predicted to rise this year — increases the demand for those who’ve “been there, done that” and can hit the ground running.
Global uncertainty persists, but we’ve been living with that reality for some time now. What’s different is that we’re seeing a more resilient workforce — one not just braced for ongoing change, but increasingly ready to grow.
If you would like a deeper dive into your region, visit the market updates from our regional heads below:
I’m always happy to chat further about the global trends I am seeing, please feel free to reach out to me at se@elliottscotthr.com.
