Making sense of the UK’s jobs market: what does it mean for contractors and freelancers?

By Katherine Steiner-Dicks Last updated Feb 24, 2025

Annual salaries: Adzuna's February 2025 Jobs Report says salaries are going up but number of vacancies are going down

While scrolling through the latest Adzuna UK job market report, we’re seeing a clear trend: job vacancies are on the decline. January 2025’s figures, dipping to the lowest since 2021, represent a shift in hiring practices. The future trend that mass redundancies could be on the cards for the next couple of months is also telling, as previously reported by The Freelance Informer. For contractors and freelancers, all of this warrants a closer look.

Location sometimes matters

What jumps out is the regional disparity. While Cambridge, Guildford, and Oxford are still buzzing, places like Bradford, Birmingham, and Luton are facing a much tougher fight. This regional imbalance is an eye-opener. If you’re a freelancer who can work remotely, this geographical divide might not be a huge issue. But for those who rely on local opportunities, especially in new build construction, it’s a signal to be adaptable so consider broadening your search.

Sector analysis

When it comes to sector analysis, retail, travel and logistics are feeling the pinch. However, trade, construction and admin are bucking the trend. The construction sector, fuelled by government housing plans, is a beacon of hope. For contractors in that space, this could mean a steady stream of work, especially as there are not enough skilled construction workers and tradespeople to fulfil the government’s new build plans. And even though teaching growth is plateauing, the sheer volume of vacancies suggests it’s still a solid area.

Where are vacancies booming?

In terms of annual growth, Adzuna reported that eight sectors saw yearly vacancy increases, led by Teaching (+33.94%), Trade and Construction (+22.87%) and Legal (+10.69%). However, the majority of sectors saw annual declines, with Retail dipping the most (-42.25%), followed by PR, Advertising & Marketing (-38.36%), Energy, Oil & Gas (-35.43%) and Graduate (-21%).

Legal remains the sector with the shortest time to fill jobs at 31.4 days, followed by Admin (32 days). Conversely, Domestic Help & Cleaning jobs now take an average of 49.2 days to fill, up from 38.7, while Healthcare & Nursing also tipped over the 40-day mark.

Salaries are climbing: what could that mean for freelancers?

While vacancies are falling, salaries are climbing. That’s a fascinating dynamic. The average advertised salary is nearing £41,000, and sectors including manufacturing, retail, and maintenance are seeing significant jumps. This is good news, of course, but it also raises a question: are companies opting for fewer, higher-paid roles instead of more lower-paid ones? If so, this could mean fewer opportunities overall, but those that exist will be more lucrative.

For freelancers, this salary surge is a double-edged sword. On the one hand, it strengthens your negotiating power. If permanent employees are seeing pay rises, then your day rate should reflect that. On the other hand, with increased competition for fewer roles, you need to be able to justify your rates and demonstrate exceptional value.

Salary transparency in decline

The decline in salary transparency is another concern. More employers are hiding salary information, making it harder to gauge fair market rates. This is where networking and industry knowledge become invaluable. You need to know your worth and be prepared to advocate for it. Polish that portfolio and provide prospective clients with measurables. Make sure those stats are on your CV.

Only Energy, Oil & Gas jobs experienced a month-by-month fall in average salary, down -3%. At the same time, Legal was once again the only sector to see a dip in average salaries on an annual basis, down -2.55% compared to January 2024.

Competition becoming fierce

The rising number of jobseekers per vacancy, now over two, is a clear indicator of increased competition. This means contractors and freelancers should sharpen their skills, build strong portfolios, and network relentlessly. Being visible and demonstrating your expertise is more important than ever.

Adapt to the new hiring environment

Looking ahead, adaptability is key. Sectors like trade & construction and admin are showing resilience, so consider where your skills align with these growth areas. Stay informed about the regional variations and be prepared to move or work remotely if necessary. Best to not shy away from negotiating your rates. The salary data suggests that employers are willing to pay for the right talent.

While there are challenges, there are also opportunities. By staying informed, adaptable, and proactive, contractors and freelancers can navigate these changes and thrive in the evolving job market.

Always be one step ahead.

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Is it time to rethink your niche as a freelancer? – Freelance Informer