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UK Hiring Plummets: Graduate Jobs Hit 4-Year Low
3 Aug
Summary
- Job postings declined by 11% in the first half of 2026.
- Advertised wage growth slowed to its lowest since February 2022.
- Demand for AI skills reached a record high in job postings.
The UK labor market faced significant pressure in the first six months of 2026, with job postings declining by 11% by July 17. This downturn left postings 32% lower than pre-pandemic levels and graduate opportunities at their lowest since 2020. Summer job postings also showed weakness, marking the weakest in four years.
In contrast, demand for AI skills has reached an unprecedented high, appearing in 9.4% of UK job postings by the end of June. This surge in AI-related demand highlights a shifting skills landscape within the challenging job market.
Advertised wage growth has consequently cooled to an annual rate of 3.9% in the three months to June, the slowest pace recorded since February 2022. This cooling wage growth, coupled with falling hiring demand, creates a difficult environment, particularly for graduates and young workers seeking entry-level positions. Prime Minister Andy Burnham recently announced plans to better align technical education with local employment needs.
