Key Findings for Q3 2025:
- 40% of Greater Manchester businesses attempted to hire staff in Q3 (compared with 54% nationally)
- Nearly 50% of those who attempted to recruit reported facing recruitment difficulties (compared with 75% nationally)
- Within the services sector group, recruitment intentions and recruit difficulties have eased in 2025 and remain unchanged between Q2 and Q3.
- 27% of businesses increased their workforce in Q3, while 59% said it stayed the same and 14% reported a decrease
- 29% of businesses expect to recruit and add to their workforce in the coming three months, with 62.5% expecting staffing levels to remain the same
Greater Manchester Chamber of Commerce's latest Quarterly Economic Survey for Q3 2025 reveals a complex picture of the region's labour market, with recruitment activity notably easing since 2024 and lower than the national average. As fewer businesses attempt to recruit, there has been a reduction in recruitment difficulties reported by those actively hiring.
The research shows that 40% of Greater Manchester businesses surveyed attempted to recruit in Q3, significantly below the national figure of 54%. This lower recruitment activity reflects the challenging economic environment facing the region, where the GM Index has declined to 13.3, down 9 points from the end of 2024.
Of those firms trying to hire staff in Greater Manchester, nearly 50% reported experiencing difficulties, substantially lower than the national average of 75%. This contrast suggests that while fewer Greater Manchester businesses are actively recruiting, those that do may also be finding the process somewhat less challenging than their counterparts elsewhere in the UK.
The services sector presents a particularly interesting picture in Greater Manchester. While 38% of firms across all service sectors attempted to recruit, only one-sixth faced recruitment difficulties. This pattern aligns with moderation in domestic and overseas demand. Nationally, the PMI indices show that the services have flatlined near the critical 50 points threshold. When customer demand is subdued, demand for labour naturally moderates, easing recruitment pressures even though a substantial proportion of firms are still attempting to hire.
Forward-looking indicators show that 29% of Greater Manchester businesses expect to recruit and expand their workforce over the next three months. However, the majority (62.5%) anticipate maintaining current staffing levels, suggesting continued caution about business expansion. The remaining businesses expect their workforce might decrease in size.
Nationally, the labour market picture differs somewhat. The BCC's Quarterly Recruitment Outlook shows that 54% of firms across the UK attempted to recruit, with 75% of those experiencing difficulties. Across the UK, 22% of businesses increased their workforce in Q3, compared with Greater Manchester's 27%, while 25% of UK firms expect to increase staffing levels in the coming months compared with 29% in Greater Manchester.
Subrahmaniam Krishnan-Harihara, Deputy Director of Research at Greater Manchester Chamber of Commerce, said: "The recruitment picture in Greater Manchester tells a story of cautious adaptation to challenging economic conditions. While fewer businesses are actively hiring compared with the national average, those that are recruiting are finding it somewhat easier than their counterparts elsewhere in the UK.
"The modest expectations for workforce growth in the coming months – with just 29% of businesses planning to expand their headcount – underscores the confidence challenges we're seeing across the economy. ONS data shows that the number of open job vacancies have declined this year. Businesses are grappling with high inflation at 3.8%, wage pressures and uncertainty around government policy, particularly the upcoming Budget.
"What's particularly concerning is the gap between Greater Manchester and national recruitment activity. At 40% versus 54% nationally, this suggests our regional economy is facing additional headwinds that are constraining business growth and hiring ambitions.
"Greater Manchester has a talented and diverse workforce, but businesses need the right conditions to invest and grow. That means policy certainty, support for business investment, and measures to control the rising cost pressures that continue to squeeze margins. The government must use the Budget to create an environment where businesses feel confident to recruit, invest and drive the economic growth our region needs."