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UK Job Vacancies Hit 5-Year Low
23 Feb
Summary
- Advertised UK job vacancies fell to 695,000 in January.
- Unemployment rose to 5.2%, a five-year high, with youth rates at 14%.
- Average advertised salaries increased nearly 6% annually, outpacing inflation.
The UK's job market experienced its most significant contraction in five years during January 2026. Advertised job vacancies fell by 3% to 695,000, the first time the figure has dropped below 700,000 since January 2021. This decline reflects a broader trend of shrinking job opportunities since mid-2025.
Official figures released shortly before this report showed a rise in unemployment to 5.2%, a five-year peak. This economic slowdown disproportionately impacts young individuals; unemployment among 18- to 24-year-olds climbed to 14% in the final three months of 2025, a five-year high. Graduate job postings also fell below 10,000 for the first time on record.
Employers are reportedly reining in recruitment due to increased labor costs, including rising national insurance contributions and minimum wage hikes. Some businesses are prioritizing investments in automation and artificial intelligence over hiring new staff. London saw the sharpest monthly decrease in advertised roles, with a nearly 6% drop in January.
Competition for available positions has intensified, with 2.4 jobseekers now competing for each vacancy, up from 2.27 in December. Popular roles include warehouse staff, healthcare support workers, and lorry drivers. Despite these challenges, average advertised salaries saw a near 6% annual increase in January, reaching £43,289, which comfortably outpaced the 3% inflation rate.
