Yes, things feel weird. No, it’s not just you.
Why you’re not feeling better off 💰 and what’s coming next
If you’re navigating the working world in your 20s/30s - you'll have felt it. The job market is wobbling (and that’s putting it lightly). Jobs are stagnant, wages aren’t stretching as far as they need, progress feels like a made up word. There’s all this talk about recession and growth in the news, but it feels like we’ve been in a permanent recession for our whole adult lives.
Now, even Chancellor Rachel Reeves has admitted it.
“Not enough working people are yet feeling progress”.
Yep. Understatement of the year. But what is really going on - why does it feel so damn hard to get hired, paid, and promoted right now?
Let’s get into it.
Unemployment is creeping up 🆙
In the UK, unemployment rates have hit 4.6% - the highest in nearly four years. But here’s the real kicker - not only are more people out of work than before, we also have fewer job openings to boot. Which means…
Job vacancies are drying up 🌵
In just three months, job listings dropped by 63,000. And this isn’t a blip - it’s part of a 35 month long trend and counting. Employers are cautious, hiring is slow, and growth is slugggggish.
A lot of this comes down to cost. Minimum wages have gone up - which is a good thing! But so have employers’ bills, including a £25 billion rise in National Insurance. This has all culminated in fewer roles being advertised, longer application processes, and prioritising internal promotions over external hires.
Wage growth is slow 💸
Wages are still rising... but only just. And with inflation still hovering above 2%, most of us are only barely keeping pace with rising prices. Which means that while you might technically be earning more, your paycheque isn’t stretching any further.
Interest rates are stuck 🏦
While all this is going on, the Bank of England is keeping interest rates at 4.25%, holding off on cuts to avoid re-triggering inflation. BUT, with a slower job market and weak wage growth, this might be set to change later this year.
More spending cuts are coming ✂️
Hands up if you can’t remember a single budget without cuts 🤷🏻♀️ well - more are on the way. Reeves’ first Spending Review is due soon, setting budgets all the way to 2029. Early signs suggest Labout could need to cut up to £5 billion just to stay on track. That means tighter public sector budgets, more caution, and less room for investment.
Ok so… what does this mean for you? 🥲
Alright - let’s keep it real…
If you’re job hunting: it might take longer, so pace yourself and be strategic.
If you’re working: don’t expect a massive pay bump – but do make a case for your value.
If you’re freelance: you might feel the squeeze in client budgets. Time to tighten up your proposition and stay visible.
This isn’t about doom. It’s about preparation. There is still opportunity out there – but it’s not going to land in your lap. You’ll need to be sharper, more intentional, and more resilient than ever.