UK Job Vacancies Fall to Lowest Level Since Covid Pandemic
The UK employment market has encountered a significant setback as total job openings have dropped to their lowest level since 2021. According to data from the job search platform Adzuna, job advertisements plunged by 16 per cent year-on-year in January, falling below 700,000 for the first time since January 2021.
Regional Declines Highlight Economic Pressures
London suffered the steepest monthly decline in recruitment, with vacancies down by 5.6 per cent. The capital was closely followed by the East Midlands and North West England, where job opportunities were four per cent lower than in December. This regional data underscores the uneven impact of economic challenges across the country.
The decrease in recruitment meant that 694,940 total roles were being advertised in January, marking a three per cent drop from the previous month. However, advertised salaries grew faster than inflation, rising six per cent from January 2025 to an average of £43,289.
Labour Market Dynamics and Sectoral Shifts
Andrew Hunter, co-founder of Adzuna, commented on the situation, stating, "As economists point to ONS data that suggests hiring rates are levelling off, the live picture from advertised jobs tells a different story." He added, "Our January figures show hiring is approaching pandemic-era levels, and with graduate roles falling to a record low, this suggests the market is far from being on stable footing."
Despite the overall decline, Hunter identified indicators of resilience in consistent wage increases and robust labour expansion in certain sectors such as teaching and cleaning. He noted, "For jobseekers in early 2026, the market remains challenging, with fewer vacancies and intense competition, but continued wage growth suggests employers are still willing to pay for the right skills."
Graduate and Youth Employment Concerns
Graduate vacancies dropped beneath 10,000 for the first time since Adzuna's tracker commenced in 2016, having nearly halved year-on-year with a 45 per cent decline. Youth unemployment stands at its highest level – 16.1 per cent – since 2014 and has risen above the EU average for the first time. Entry-level positions declined four per cent annually to 197,044 vacancies.
Sector-Specific Trends and Salary Variations
IT remained the highest-paid sector in January, with average salaries climbing to £63,428. In contrast, maintenance jobs experienced the largest annual decline in pay at three per cent. This disparity highlights the varying fortunes across different industries within the UK job market.
The broader economic context includes criticisms of Labour's employment rights act, which has been faulted for imposing additional hiring costs on British businesses. Chief financial officers at retail companies have indicated they may be compelled to lay off staff as these reforms are rolled out, further complicating the employment landscape.
