Latest Employment News in London

London. The capital of the UK is a hub and a focal point for travel, business, and all things finance that happen across the UK.

In 2025, several changes to employee rights in the UK have occurred, with the most significant impact being felt by employers in London. However, as of July 2025, what else has been happening in relation to jobs and employment in the capital?

Four-Day Work Week Trial

In November 2024, the Four Day Week Foundation began a six-month trial of the four-day workweek in the capital. It involved seventeen organisations and was monitored by Boston College.

Over six months on, the results are in. The pilot study, which included over 1,000 employees and allowed companies to reduce the working week to thirty-two hours with no pay cuts, has had some interesting results. All of the firms that took part have decided to continue with the reduced-hour model after the study has ended, with sixty-two percent of employees reporting reduced burnout, forty-five percent reporting greater overall life satisfaction, and forty-one percent reporting improvements in their mental health.

Additionally, the participating firms reported revenue growth and a doubling of financial performance, with no decline in key performance indicators. Does this mean the four-day workweek will be more commonplace in the UK? If you think this may be a great move for your company, it is worth seeking guidance from an external department such as the HR Dept, to make sure that all contracts and legal protections for you and your staff are covered before making this switch.

The End of The Black Cab?

London is associated with many things, particularly to tourists, and one of those is the black cab.

Since 2013, one of the largest fleets of black cabs in the capital has been owned by the London EV Company, which was formerly known as the London Taxi Corporation and is based near Coventry. In the last week, the company announced that it will be cutting 108 jobs in London due to an ongoing slump in demand for its electric taxis. There have also been growing pressures on the firm, as there are fewer licensed cab drivers able to drive for the company, which has led to a decline in reach across the capital. The company also trying to reposition itself to be more sustainable, as well as cutting costs so, this is seen as part of that process.

Is AI Recruitment A Headache For Students?

Being a graduate is hard, especially in the economic climate of 2025.

However, in the capital, with the rise of AI in the workplace, it is becoming harder for graduates to even get access to job interviews, as AI is now being implemented to oversee large parts of the hiring process.

It seems that AI recruitment models are now being used to screen CVs that are being sent to companies, and the results for many who have applied have been astounding. Skills that were once sought after are being removed from the chance to interview, as AI models instead prioritise network connections and vocational skills. The latter is not a surprise, as it has long been thought that degrees and university education did not equate to real-world experience, so this could be the start of retraining for many young people in London.

The Non-Dom Tax Hits Home

It is no surprise that in London, there are higher-than-average rates of domestic staffing agencies. Since the reforms of the non-domiciled tax status which took place earlier this year, these agencies have seen a drop in housekeeping, butler, and security roles by as much as fourteen per cent. Wealthy residents in the capital are shifting to temporary staffing options. Why? Simply put, the wealthier people in London who used the services of these agencies are now having to move their assets around, as their global income may now be taxed, rather than just what is earned in the UK.

The end result is a lower demand for permanent domestic staff , which has led to a drop in these roles. So, if you are thinking about training as a domestic and working for a millionaire in Mayfair, it may be time to shift gears. However, there are some US nationals who are coming to have temporary residence in London who, as non-citizens, are not impacted by this tax and, as such, are likely going to keep employing staff in London to oversee their homes.

Bank of England Mortgages

It is fair to say that one of the hardest places in the UK to buy a home is London.

It came as quite a surprise that the Bank of England has rolled out looser mortgage rules, aiming to help get over thirty-six thousand people on to the property ladder in the capital and beyond by the end of 2025. This means that the mortgage advisors, and entry-level mortgage advisors for the Bank of England will retrain, and employment and hiring figures are set to go up for this company. Are the looser mortgage rules going to pay off?