UK Job Vacancies Plunge to Lowest Level Since Pandemic
New research reveals a significant downturn in the UK labour market, with job vacancies dropping to their lowest point since the height of the pandemic. According to data from the job search site Adzuna, advertised roles fell by 3% in January to just 695,000, marking the first time the figure has dipped below 700,000 since January 2021.
Graduate Opportunities and Youth Employment Hit Hard
The decline has been particularly severe for young jobseekers. Graduate job postings have fallen below 10,000 for the first time since Adzuna began tracking this data in 2016. This comes as unemployment among 18- to 24-year-olds rose to 14% in the final quarter of 2025, the highest rate in five years when excluding the pandemic period.
Andrew Hunter, co-founder of Adzuna, commented on the challenging conditions, stating, "For jobseekers in early 2026, the market remains challenging, with fewer vacancies and intense competition." The research indicates that competition for jobs has intensified, with 2.4 jobseekers now competing for each vacancy, up from 2.27 in December.
Economic Factors Driving the Downturn
The fall in vacancies represents a continuation of a downward trend that began in late 2025, showing a 16% decrease compared to January of the previous year and a near-20% decline over the past six months. This sharp contraction in job opportunities since mid-2025 is attributed to several economic pressures.
Employers are reining in hiring due to increased labour costs, including rises in national insurance contributions and the minimum wage announced in the last two budgets by Chancellor Rachel Reeves. Additionally, some companies are prioritising investment in automation and artificial intelligence tools over recruitment, further reducing demand for human labour.
Regional Variations and Sector Insights
While vacancies have declined across the UK, London experienced the sharpest monthly drop, with advertised roles falling by almost 6% in January. Despite the overall downturn, certain sectors continue to show demand. The most searched-for jobs include warehouse staff, healthcare support workers, lorry drivers, labourers, and kitchen assistants.
A Silver Lining in Wage Growth
Amid the bleak hiring landscape, one positive aspect for jobseekers is sustained wage growth. Average advertised salaries rose to £43,289 in January, representing an almost 6% annual increase. This comfortably outpaces inflation, which fell to 3% last month, suggesting that employers are still willing to pay a premium for the right skills.
Hunter noted, "Although competition for roles remains high, these pockets of strength suggest businesses are beginning to adapt to tougher conditions and invest where it matters." However, the broader trend highlights growing concerns about the UK's position in the global youth employment league table and the economic challenges facing new entrants to the workforce.
