Saturday 12th of October marked the first 100 days of the Labour government, and while there was an initial boost in market sentiment following their election, momentum has since slowed, largely due to seasonal factors and growing concerns about the economy. Political uncertainties are also contributing to market volatility, with key events such as the upcoming budget on October 30th and the US presidential race later this year adding to the unease.
Businesses are showing apprehension ahead of the budget, especially around potential tax changes and the government's efforts to plug their £40bn deficit. Possible hikes in capital gains tax and employer national insurance are major concerns. Moreover, the changes to employment law are already making employers rethink their current and future workforce strategies even though the government’s employment reforms are two years away – we will be hosting a webinar with Journey HR in the next month, more details will be shared soon.
In the Creative Industries, initial enquiries into hiring as remained consistent from Q2 to Q3 however the number of hires, has fallen by around 40%. This is down to a number of factors; lack of confidence in the market from both clients and candidates, increase in holidays taken slowing down processes and a stall on following through strategies until the new year. We’ve seen a 28% increase in FTC’s, with many opting for short-term solutions to give themselves more flexibility.
Sadly, the volatility continues to play across the UK job market, with the Office for National Statistics (ONS) publishing their latest labour market data last week, which highlighted that vacancies in the UK have declined for the 27th period in a row, down by 34,000 in Q2.
Restructuring is still causing redundancies in some quarters, with pay rolled employees down by 50,000 from July to September. For a lot of businesses, consolidation is the focus, and mergers and acquisitions (M&A) remain a top priority. There is an expectation there will be a flurry of activity in October as business owners rush to complete deals before the upcoming Budget on 30 October. It will be interesting to see how any changes the Chancellor announces may impact the appetite for M&A activity.
Agencies understand their need to continue to adapt to rapidly changing industries, embracing new technologies such as AI and machine learning to stay competitive; and M&A’s enable them to achieve economies of scale, while driving profitability, and enhancing security and opportunities for employees.
As businesses focus on consolidation through mergers and acquisitions (M&A), the drive for efficiency has led to the de-prioritisation of DE&I initiatives, with teams and budgets being reduced or put on hold. This shift will have long-term effects on access, representation and equity across the Creative Industries – how much so, we will not know until we publish our 2025 Salary Census, of which this year’s survey will be sent out in early November.
Despite seeing a 12% YoY increase in briefs this year compared to last, the job market is still challenging for candidates and job seekers. We are hosting a webinar, ‘Navigating Your Job Search’, for those who are looking for a new role, have been made redundant or trying to advance in their career – feel free to sign up here and share with those in your network who might find it useful.
It’s crucial for businesses to stay flexible, innovative, and adaptable, while embracing the opportunities that change brings—whether through evolving organisational structures, new technologies, or talent and retention strategies. If you'd like to discuss any of these topics or have any questions, we’re here to help – feel free to reach out to us: talk@majorplayers.co.uk.
