UK job vacancies fall to lowest level since pandemic

Published: 23 February 2026. The English Chronicle Desk. The English Chronicle Online.

UK job vacancies have fallen to their lowest level since the pandemic, according to new research that paints a sobering picture of the labour market at the start of 2026. The latest figures suggest that employers across the country are pulling back on recruitment, leaving jobseekers facing tighter competition and fewer opportunities than at any point in the past five years.

Data released by the recruitment search engine Adzuna shows that the number of advertised roles slipped by three per cent in January, falling to 695,000. This marks the first time vacancies have dropped below the 700,000 threshold since January 2021, when the country was still grappling with the economic shockwaves of Covid-19 restrictions. The steady decline through late 2025 has now accelerated into the new year, deepening concerns about economic momentum.

The contraction in UK job vacancies comes against a backdrop of rising unemployment. Official figures published last week showed that the jobless rate climbed to 5.2 per cent, reaching its highest point in five years. Wage growth has also started to cool, although it continues to outpace inflation. For many analysts, these combined signals suggest a labour market that is losing steam after a period of post-pandemic recovery.

Compared with January last year, advertised roles are down by 16 per cent. The drop is even more pronounced when measured against figures from six months ago, with a near 20 per cent fall recorded since mid-2025. This sustained downturn reflects mounting pressures on businesses, particularly as operating costs rise and confidence remains fragile.

Much of the strain has been linked to fiscal decisions taken in recent budgets. Chancellor Rachel Reeves announced increases in national insurance contributions and adjustments to the minimum wage during her last two financial statements. While these measures were designed to strengthen public finances and protect workers’ incomes, they have also increased the cost base for many employers. Several companies have responded by pausing recruitment or trimming expansion plans.

The additional labour costs arrive at a time when firms are also reassessing long-term investment strategies. Many businesses are choosing to channel funds into automation and artificial intelligence technologies instead of hiring new staff. Advances in digital systems have made it easier for companies to streamline operations, reduce manual workloads and improve efficiency. For some sectors, this shift has reduced immediate reliance on new recruits.

Young people appear to be bearing the brunt of the slowdown. Unemployment among those aged 18 to 24 rose to 14 per cent in the final quarter of 2025. Even excluding pandemic distortions, this represents the highest rate in five years. The weakening of UK job vacancies has had a particularly sharp impact on entry-level roles, limiting pathways for graduates and school leavers seeking their first professional steps.

Graduate recruitment figures underline this trend. The number of advertised graduate jobs fell below 10,000 in January, the lowest level recorded since tracking began in 2016. For university leavers who anticipated a stronger rebound following years of disruption, the reality has proved challenging. Many are now competing for fewer openings while facing rising living costs and student loan repayments.

London experienced the sharpest monthly fall in advertised positions, with vacancies in the capital declining by nearly six per cent. As the UK’s largest employment hub, London’s performance often signals broader national patterns. A slowdown in the capital’s hiring activity therefore raises wider concerns about service industries, finance and professional sectors that typically drive growth.

Competition for available roles has intensified as opportunities shrink. In January there were 2.4 jobseekers for every advertised vacancy, up from 2.27 in December. While the difference may appear modest, it reflects a growing imbalance between supply and demand in the labour market. For applicants, this means more rigorous selection processes and longer waits for responses.

Despite the decline in UK job vacancies, certain roles continue to attract strong interest. Warehouse operatives, healthcare support workers, lorry drivers, labourers and kitchen assistants ranked among the most searched-for positions. These occupations often provide accessible entry points and reflect ongoing demand in logistics, care services and hospitality. Even so, the volume of openings in these areas has not been sufficient to offset broader contraction.

Andrew Hunter, co-founder of Adzuna, acknowledged the pressures facing applicants but pointed to signs of resilience. He noted that although competition remains high, some sectors are adapting to tougher conditions and investing strategically. Employers, he suggested, continue to reward specialist skills and experience, even as overall vacancy numbers decline.

One area offering cautious optimism is wage growth. Average advertised salaries reached £43,289 in January, representing an annual increase of almost six per cent. This rise comfortably outpaced inflation, which fell to three per cent last month. For those who secure employment, pay packets are therefore retaining purchasing power despite economic uncertainty.

However, analysts warn that wage growth may not fully compensate for reduced hiring volumes. When UK job vacancies contract, fewer people benefit from rising salaries. Those outside employment risk prolonged job searches, skills erosion and financial strain. Economists often stress that sustained job creation is vital for long-term prosperity and social stability.

Business leaders have expressed mixed views on the outlook. Some argue that cost pressures will ease later in the year, enabling recruitment to stabilise. Others caution that global economic headwinds and domestic policy shifts could prolong the slowdown. International trade dynamics, energy prices and geopolitical tensions all add layers of complexity to hiring decisions.

The government has reiterated its commitment to supporting growth and productivity. Ministers emphasise investment in skills training, apprenticeships and infrastructure projects designed to stimulate employment. Whether these initiatives will translate into a revival of UK job vacancies remains uncertain. Much will depend on business confidence and consumer demand during the coming quarters.

For jobseekers, the current climate demands flexibility and resilience. Careers advisers encourage candidates to broaden search criteria, enhance digital skills and remain open to transitional roles. Networking and continuous learning may provide crucial advantages in a competitive market. While the path to employment appears steeper than in recent years, opportunities have not disappeared entirely.

The broader narrative suggests a labour market adjusting to structural change rather than experiencing sudden collapse. Automation, demographic shifts and fiscal policy are reshaping recruitment patterns. The decline in UK job vacancies signals a cooling phase, yet not necessarily a permanent contraction. History shows that employment cycles often respond gradually to policy and economic shifts.

As 2026 unfolds, attention will remain fixed on vacancy data, wage trends and unemployment figures. Businesses, policymakers and workers alike are navigating a delicate balance between cost control and growth ambitions. The coming months will reveal whether the current trough represents a temporary dip or the start of a longer recalibration.

For now, the figures serve as a reminder that economic recovery is rarely linear. The pandemic’s aftershocks continue to ripple through hiring decisions and investment strategies. While average pay growth offers some comfort, the fall in UK job vacancies underscores the challenges confronting Britain’s workforce at this pivotal moment.

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