Unemployment in Nottingham is rising - but what does that really mean for local employers?
UK unemployment has risen to 5% – but what does that really look like locally?
National figures only tell part of the story. When we look closer at our key recruiting areas, the picture changes – with higher unemployment rates still being reported in regions like High Peak, Derby, Ashfield and Nottingham. Our new office opening in 2026 will sit right on Nottingham’s doorstep, making it the perfect time to take a closer look at what’s happening locally…
Using Data from the Office for National Statistics, it’s clear that Nottingham’s unemployment rate sits higher than surrounding Nottinghamshire areas – something that’s largely expected given the city’s larger population.
Although Nottingham’s unemployment rate is higher than its neighbours – that doesn’t have to be bad news. It means there’s a bigger pool of potential talent waiting to be re-engaged, retrained or redirected.
It’s easy to look at a high unemployment rate and assume that people simply don’t want to work – but in many cases that couldn’t be further from the truth.
Instead, the right opportunities just aren’t available. For example, research by the CIPD shows that over a million have changed jobs over a lack of flexibility.
That’s a clear indication that many people would work if roles offered flexibility, had part-time options or hours that fit around school and family commitments. Many employees now consider flexible options a priority, whether that’s hybrid arrangements or fully remote positions. According to StandOut CV, 47% of UK employees assess a job opportunity based on the work-life balance it offers.
Hard-working candidates are sitting in the labour market, waiting for roles that match their lives and when businesses need them. The challenge for employers is no longer simply filling a vacancy – it’s matching these ready-to-work people with roles that fit both the business need and today’s evolving candidate expectations.
By rethinking recruitment and adapting roles to the needs of today’s workforce, through flexibility, broader talent sourcing and skills development, employers in Nottingham can turn the city’s high unemployment rate into a strategic advantage. Consider flexibility where possible through job shares, midday shifts, adjustable start and finish times and accommodating working parents around school hours or holidays.
Availability vs Suitability
Availability doesn’t always equal suitability. A candidate may be ready to start immediately, but that doesn’t always mean they have the right skills, experience or training to succeed in the role long term. In today’s labour market, employers are often faced with a larger pool of available candidates, but fewer who are job-ready for specific environments, shift patterns or technical demands. This is why focusing solely on availability can lead to higher turnover and repeated hiring. Taking the time to assess attitude, reliability and learning potential – and pairing this with the right training and support – can help businesses build a more stable, skilled workforce that lasts beyond day one.
In 2024, People Management repored that a quarter (23 per cent) of survey respondents admitted they had applied for jobs they knew they were not qualified for.
Using data from Indeed, we have listed the average pay rates for Warehouse Workers across Nottinghamshire.
Nottingham’s average pay rate is lower than that of its neighbouring areas. Cost pressures on businesses are mounting which can be likey to affect pay rates, especially with the upcoming rises in April. A survey by the CIPD found that one in four employers conducted a redundancy programme in the last 12 months (April 20245 – April 2025) as they struggle with rising input costs and labour burdens.
This can create a challenge: candidates may be unwilling to travel into Nottingham if higher pay is available closer to home, particularly when factoring in travel costs. This makes it more important than ever to focus on your local talent pool and make roles attractive to job seekers in your area.
Reported by Manufacturing Management
Reported by Manufacturing Management
Reported by Conventry University
Reported by the University of Birmingham
With unemployment rising but skills still in short supply, it can also be an opportunity for employers to reshape how they hire. In a market where candidates are available, but limited on flexibility or less qualified due to skills shortages, there is opportunity to be more flexible with working hours or develop the skills internally with the right training and support.
Temp-to-perm recruitment offers a practical way to bring in motivated individuals with the right attitude and reliability, then develop the skills your business actually needs. By using a temporary period as a working trial, employers can assess work ethic, learning ability and cultural fit before committing long term. During this time, skills can be built through a combination of on-the-job training, online learning platforms, external training providers, local colleges and Job Centre supported programmes, many of which are designed to help people move back into sustainable employment. Mentoring from experienced team members and cross-department exposure can further accelerate development while strengthening engagement and retention. For employers, this approach reduces hiring risk, creates a stronger pipeline of future talent and turns today’s labour market challenges into a long-term workforce opportunity.
