UK Employment Market Sectors Showing Improvement (February-August 2025)
Based on comprehensive research across multiple data sources, here is a detailed analysis of UK employment sectors experiencing growth and improvement over the last six months, ranked by their performance indicators.
UK Employment Sectors Growth Ranking for the last 6 months, with Technology leading growth followed by Renewable Energy and Healthcare sectors.
Top Performing Sectors (Ranked by Growth)
1. Technology Sector – Leading Growth
Status: Strong Growth
The UK technology sector demonstrates the strongest employment growth, with the industry employing approximately 1.7 million people and achieving significant expansion across key subsectors[1][2]:
AI & Machine Learning:
- AI engineering jobs growing by 35% year-on-year[1]
- Strong demand for AI engineers with salaries ranging £40,000-£120,000+[1]
- 98% year-on-year increase in AI investments across financial institutions[3]
Cybersecurity:
- Sector revenue reached £13.2 billion (up 12% from previous year)[4][5]
- Employment grew to 67,300 people, creating 6,600 new jobs in past year[5]
- Salaries range from £70,000-£80,000 annually in London[6]
Data Analytics & Cloud Computing:
- High demand for data scientists, cloud architects, and DevOps specialists[1]
- Strong growth in IT consultancy and software development roles[1]
2. Renewable Energy & Green Jobs – Rapid Expansion
Status: Rapid Expansion
The renewable energy sector shows exceptional growth momentum driven by the UK’s Clean Power 2030 targets[7][8]:
Wind Energy:
- Current workforce: 55,000 (40,000 offshore, 15,000 onshore)[8]
- Projected to reach 112,000+ jobs by 2030[8]
- 24% increase in offshore wind employment over two years[8]
Green Skills:
- 48% increase in job adverts mentioning “green skills”[9]
- 55% increase in job adverts for green engineering jobs[9]
- Up to 725,000 new jobs needed by 2030 for net-zero transition[9]
Salary Growth:
- UK renewable energy professionals secured 13.2% salary increases in 2025[10]
- Average compensation reached £82,808[10]
- 48% of renewable energy workers received pay raises in 2025[11]
3. Healthcare & Social Care – High Demand
Status: High Demand
Healthcare emerges as one of the most in-demand sectors with significant workforce expansion plans[12][13]:
Key Growth Indicators:
- Healthcare support workers identified as most in-demand professionals[12]
- Estimated 70,000 new healthcare roles expected[14]
- NHS plans 80% increase in nursing training placements by 2031/32[15]
Salary Trends:
- Median healthcare salary: £39,900 (up 14.5% from 2023)[16]
- Registered nurses: £42,300-£46,700[16]
- Healthcare assistants: £25,400-£27,800[16]
4. Finance & Financial Services – Mixed Growth
Status: Mixed/Moderate Growth
The finance sector shows varied performance across subsectors with notable growth in fintech and accountancy[17][3]:
Strong Performers:
- Fintech: 44% surge in job vacancies[3]
- Accountancy: 29% increase in vacancies, particularly driven by ESG reforms[17]
Challenging Areas:
- Banking: 11% decline in vacancies[3]
- Asset Management: Expected to drop 43%[17]
Regional Performance:
- London saw 7% increase in finance vacancies[3]
- Rest of UK experienced 4% decline[3]
5. Life Sciences & Pharmaceuticals – Stable Recovery
Status: Stable Recovery
Life sciences demonstrates steady recovery with targeted growth in specific areas[18][19]:
Growth Metrics:
- Vacancies increased 5.2% year-on-year to 7,521[18]
- London led recovery with 29% surge in openings[18]
- Yorkshire and Humber showed 32.9% growth[18]
Sector Breakdown:
- Big Pharma: 52.2% of scientific vacancies (3,924 roles)[18]
- Biotech: Fastest-growing at 23.7% growth (1,366 vacancies)[18]
6. Engineering – Strong Growth
Status: Strong Growth
Engineering was the only sector reporting increased demand for temporary roles and recorded the strongest rise in permanent vacancies[20][21]:
Employment Outlook:
- UK Engineering Net Employment Outlook: 28% for Q3 2025[21]
- 42% of employers plan to increase headcount[21]
- 6.4 million people work in engineering and technology (19% of all UK jobs)[9]
Green Engineering:
- Up to 725,000 new jobs needed by 2030 for net-zero[9]
- Strong demand in automation, sustainability, and additive manufacturing[22]
7. Education – High Demand
Status: High Demand
Education sector faces significant demand with government commitment to workforce expansion[23][24]:
Government Commitments:
- 6,500 additional teachers pledged by end of current Parliament[25][24]
- £233 million investment in teacher recruitment for 2025-26[26]
Challenges and Opportunities:
- Secondary recruitment at 62% of target in 2024/25[24]
- High demand in STEM subjects and special education[23]
- 5.5% fully funded pay award for 2024/25[25]
8. Construction – Recovering
Status: Recovering
Construction shows signs of recovery with ambitious workforce growth targets[27][28]:
Workforce Projections:
- Current workforce: 2.6+ million people[27]
- Target: 2.75 million by 2029[27]
- 47,860 extra workers needed annually[27]
Growth Areas:
- Infrastructure projects leading growth[27]
- Strong demand for skilled trades and operatives[27]
- Wage growth at 4.7% (below average but improving)[29]
9-10. Supporting Sectors
Human Health and Social Work Activities: Growing demand driven by aging population and post-pandemic recovery needs.
Professional, Scientific and Technical Activities: Steady growth in consulting, R&D, and technical services, particularly supporting the technology and green energy transitions.
Key Market Dynamics
Overall Market Context:
- UK employment increased by 134,000 in three months to May 2025[30]
- Unemployment rate at 4.7% (highest in four years)[31]
- Total UK vacancies: 727,000 (down from previous quarters but stabilizing)[32][33]
Wage Growth Trends:
- Average earnings growth varies significantly by sector[34]
- Technology and renewable energy leading salary increases
- Healthcare and engineering showing competitive compensation growth
Recommendations for Job Seekers and Employers
For Job Seekers:
- Technology Skills: Focus on AI, cybersecurity, and data analytics certifications
- Green Skills: Develop expertise in renewable energy and sustainability
- Healthcare: Consider roles in mental health, digital health, and community care
- Cross-sector Skills: Emphasize transferable skills between growing sectors
For Employers:
- Talent Pipeline Development: Invest in training and apprenticeship programs
- Competitive Compensation: Align salary offerings with sector growth trends
- Skills-based Hiring: Focus on capabilities rather than traditional qualifications
- Regional Expansion: Consider opportunities outside London for cost-effective growth
This analysis demonstrates that while the UK job market faces overall challenges, significant opportunities exist in technology, renewable energy, healthcare, and supporting sectors driven by digital transformation, net-zero commitments, and demographic changes.
