A volatile year in review

Against a backdrop of changing UK and US governments and global unrest, the UK economy slowed to 0.1% in the third quarter of 2024. Private sector employment declined at its fastest rate since 2009 (excluding the pandemic) with much of this attributed to rising employment costs and slowing consumer demand.

As a reliable barometer of the national economy, the UK recruitment sector has faced a tough year, with many smaller business going to the wall and Hays announcing a 90% drop in profits. Amidst talk of a “cooling” economy, Reed has noted a reduction of about 26% in jobs advertised on its website compared with last year, with a fall of 13% between October and November. The Autumn Budget has exacerbated the slowdown, as employers ready themselves for the planned rise in National Insurance Contributions from next April.

On a slightly longer timeline, the Recruitment & Employment Confederation’s Labour Market Tracker shows that permanent and temporary hires dropped sharply in 2023, making a slight recovery in 2024, but with numbers still well adrift of a peak in 2022.

Resilience is the difference

In a sector that is one of the first to feel the impact of declining markets, we’ve been fortunate to be able to continue without changing how we work. It’s a small triumph for us that we’ve achieved modest profitability, lost no individuals from the team and maintained our core strengths. It hasn’t been easy. While the post-pandemic resurgence was significant, making 2022/23 our most successful year on record, 2024/25 has seen us regress to 2016/17 figures (but as a much more established company) making this the most challenging year financially that we’ve ever faced.

We were lucky to have some factors in our favour that have helped us limit the damage. First among those is a magnificently committed, loyal team who are happy in their work and whose values are aligned. Our resilience is a testament to our team’s diligence, hard work, and patience. In the last few months we’ve spoken to many clients who have similar cultures to our own, who have weathered the storm in the same way, and who likewise count their culture, values and people as their strongest assets.

Our view of the market

Startups, scaleups and investment-dependent businesses felt a lot of pain this year, and while larger companies weathered the challenges of 2024, they often relied on staff cutbacks.

Despite slowing demand for candidates in many sectors, hiring has remained consistent (in our experience at least) for hands-on professionals such as engineers, with highly skilled individuals still able to find roles quickly. Strategic, senior, or C-suite roles have been less in demand, as businesses hesitate to take risks on leadership changes. Marketing roles have followed a similar pattern, focusing more on execution than growth and strategy.

There are already signs that 2025 could be a better year. The Office of Budget Responsibility predicts the economy will grow, and, having seen a few green shoots of recovery amongst many of our clients, we’re cautiously optimistic.

Looking ahead

Despite a difficult year, we take pride in retaining the same team, who continue to work with smiles on their faces. We’ve stayed true to Gerrell & Hard’s values, achieving sustainable growth without overreaching. We’re ready to go again, and we look forward to what the next year will bring. 

A heartfelt thank you to all our clients, candidates, followers and everyone who has worked with us this year, and not least to the wonderful Gerrell & Hard team whose positivity, stability and kindness makes this business what it is, and without whom we simply wouldn’t be here.

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What caught our attention this month

Drivers of the popular Mazda MX-5 Mk1 can now go electric, with a new conversion kit from Electrogenic. The kit provides about 240km of range and 160bhp, providing a sustainable upgrade to a beloved classic.

Mercedes-Benz is exploring cutting-edge technologies, such as solar paint, that could prove capable of generating enough electricity to power EVs for thousands of miles each year, minimising charging stops and emissions. The company is also investigating sustainable materials and energy-efficient AI solutions.

Honda has revealed plans to mass-produce solid-state batteries at a new demonstration facility in Japan, targeting higher energy density and longer-lasting EVs by the late 2020s. The company sees solid-state batteries as the key to making EVs more affordable.