UK Employment: Stabilising, But Still Fragile

What this means for Leadership Hiring in Growth Firms and Private Equity Portfolio Companies.

The UK labour market is showing early signs of stabilisation, but headwinds remain. For private equity investors and high-growth SMEs across Newcastle, Leeds, and Manchester, this moment calls for clarity in leadership and confidence in hiring.

What's Happening in the Market

• Unemployment has nudged up to 4.8% (three months to August 2025), reflecting a cooling economy.

• Vacancies continue to fall below pre-pandemic levels with sharp drops in permanent roles across retail, admin, and hospitality.

• Recruitment activity is subdued, and wage growth is slowing, though real wages remain positive.

• Redundancies have declined for two consecutive months, suggesting some stabilisation.

What's Driving It

• A weaker macroeconomic outlook is dampening hiring appetite.

• Rising employer National Insurance contributions may be discouraging new headcount.

• The candidate pool is expanding which is a reversal of the post-COVID talent squeeze.

What This Means for PE and Growth Firms

For investors, founders and SME business leaders in Newcastle, Leeds, and Manchester, this environment presents a strategic window. Leadership hiring may be slowing in some sectors, but the availability of senior talent is improving especially in finance, compliance, and operational leadership.

At FatGreen Executive, we are seeing renewed interest in critical hires across PE-backed businesses and ambitious SMEs. The firms that act now before the next wave of competition will be best placed to scale with confidence.

Regional Opportunity

• Newcastle: Strong in clean energy, fintech, and digital infrastructure.

• Leeds: A financial services powerhouse with growing health tech and legal tech sectors.

• Manchester: Leading in fintech, AI, and life sciences—with deep investor activity and national reach.

Each city is scaling fast. The right leadership will determine who leads that growth.

FatGreen Executive delivers senior recruitment solutions for private equity and high-growth firms across the North. We place Chairs, CFOs, and functional leaders who align with strategy and accelerate it.

Let's build the next chapter of Northern growth—one exceptional hire at a time.