UK job vacancies have dropped to their lowest level since the pandemic, signalling a continued cooling in the labour market.
According to job search site Adzuna, advertised roles fell by 3% in January to 695,000. This is the first time vacancies have dipped below 700,000 since January 2021. The decline extends a downward trend that began in late 2025. Compared with a year earlier, vacancies are down 16%, and they have fallen by nearly 20% over the past six months.
Graduate recruitment has been particularly hard hit. Vacancies for graduates fell below 10,000 for the first time since Adzuna began tracking the data in 2016.
The figures follow official statistics showing UK unemployment has risen to 5.2%, a five-year high. Youth unemployment is climbing more sharply, with the rate among 18- to 24-year-olds reaching 14% in the final quarter of 2025, or just under 11% excluding the pandemic period.
Employers appear to be reining in hiring amid rising labour costs, including increases in employer national insurance contributions and the minimum wage announced in recent budgets. Some businesses are also directing investment towards automation and artificial intelligence rather than expanding headcount.
London recorded the steepest monthly fall, with vacancies dropping by almost 6% in January.
Competition for roles is intensifying, with 2.4 job seekers per vacancy, up from 2.27 in December. Despite weaker demand, average advertised salaries rose to £43,289 in January, up nearly 6% year on year and ahead of inflation, which stood at 3%.
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