UK job vacancies ‘fall to lowest level since pandemic’ | UK unemployment and employment statistics
Research shows the number of job vacancies in the UK has fallen to its lowest level in five years, falling to levels not seen since the pandemic.
According to job search site Adzuna, the number of jobs advertised fell 3% in January to 695,000; This marks the first time since January 2021 that advertised vacancies have fallen below 700,000.
Graduate jobs fell below 10,000 for the first time since Adzuna started tracking it in 2016.
The research comes just days after official figures showed UK unemployment had risen to a five-year high of 5.2 per cent, as wage growth slowed and concerns grew that young people were bearing the brunt of the hiring slowdown.
The decline in the number of vacancies marked a continuation of the downward trend seen in late 2025, representing a 16% decrease compared to last January and an almost 20% decrease since six months ago.
The report highlights how sharply job opportunities have contracted since mid-2025 as employers rein in hiring in the face of increases in national insurance contributions and the minimum wage announced by Rachel Reeves in her last two budgets.
Extra labor costs for businesses also arise as some companies prioritize investing in automation and artificial intelligence tools over hiring.
This trend has particularly affected young people looking for work; At a time when unemployment among 18-24 year olds rose to 14% in the final three months of 2025, the highest rate in five years, or nearly 11 years excluding the pandemic, raising concerns that Britain is falling further down the global youth employment league table.
While the number of advertised vacancies fell across the UK, the sharpest monthly decline was in London, where advertised positions fell by almost 6% in January.
The research found that job competition has increased, with the number of job seekers for every open position increasing from 2.27 to 2.4 in December.
The most sought-after jobs included warehouse staff, healthcare support workers, truck drivers, laborers and kitchen assistants.
Andrew Hunter, co-founder of Adzuna, said: “While competition for roles remains high, these areas of strength show that businesses are starting to adapt to tougher circumstances and invest where it matters. For job seekers in early 2026, the market remains challenging with fewer vacancies and intense competition, but continued pay growth shows employers are still willing to pay for the right skills.”
But one bright spot for job seekers remains wage growth. Average advertised salaries rose to £43,289 in January; This represented an annual increase of almost 6%, easily outpacing inflation, which fell to 3% last month.
