UK Labour Market Insights – December 2025: Key Trends for Technology & Electronics Recruitment

Peter Livingstone, Director

09/12/2025

As 2025 draws to a close, the latest KPMG & REC UK Report on Jobs provides a clear picture of the labour market and what it means for employers in the technology and electronics sectors. Understanding these trends is essential for businesses planning their workforce strategy for 2026.

UK Labour Market Overview – December 2025

The UK labour market continues to show mixed signals, balancing stabilisation in some areas with ongoing uncertainty in others:

UK Vacancies: Stabilised at around 723,000 in the three months to October (ONS), indicating steady demand despite economic headwinds.
Permanent Vacancies: Continued to decline, driven by subdued business confidence and budget constraints.
Contract/Temporary Billings: Slight dip after October’s growth, though the Midlands experienced a sharp rise in demand for temporary staff.
Candidate Availability: Increased for the 33rd consecutive month, marking the second-fastest growth since late 2020. This surge creates opportunities for employers to access previously scarce technical skills.
Pay Trends: Permanent salaries rose at the fastest pace since June, reflecting competition for top talent. Contract rates remained largely flat, suggesting stability in flexible hiring costs.

Implications for Technology & Electronics Businesses

For employers in electronics, engineering, and technology, these trends present both opportunities and challenges:

Improved Talent Pool: With candidate availability rising, businesses can access skilled engineers, developers, and technical specialists who were previously hard to find.
Salary Pressures: Permanent pay increases mean companies must balance competitive offers with budget constraints.
Flexibility Matters: Contract and interim roles remain critical for maintaining agility in uncertain times.

Roles in High Demand

Senior Electronics Engineers
Software Engineers / Developers
AI & Machine Learning Specialists
Electrical Engineers
Manufacturing Management Professionals
Defence & High-Reliability Technologists

Industry Investments Driving Recruitment Demand

Several major announcements are shaping hiring needs in the UK technology and electronics sectors:

£17M UK Space Agency investment in 17 space projects
£10M for next-generation chips as part of the £1B National Semiconductor Strategy
Typhoon fighter jet orders from Turkey & Germany
AI investment surge: Microsoft $30B, Google $5B, Nvidia $2B
£2.5B Small Modular Reactor investment by British Energy

These investments signal strong long-term growth in aerospace, defence, nuclear, semiconductors, and AI – all areas requiring highly skilled technical talent.

Global & UK Manufacturing Outlook

According to the J.P. Morgan Global Manufacturing PMI:

Global manufacturing expanded for the fourth consecutive month, though growth slowed slightly.
The UK returned to expansion after 11 months of contraction, with output and new orders rising – a positive sign for industrial and technology sectors.

Redline Group – Navigating Market Complexity

Despite broader market challenges, Redline Group continues to see strong demand for:

Technical sales roles
Critical hires in electronics and technology-driven businesses investing for long-term growth

Our expertise ensures you secure the right talent, at the right time, with the right skills to drive your business forward.

Partner with Redline Group

As the labour market evolves, strategic hiring is more important than ever. Redline helps you navigate these dynamics – identifying top talent for permanent, contract, and interim roles. Contact us today: info@redlinegroup.com