The number of advertised job vacancies in the UK has dipped below 700,000 for the first time in five years, signaling a cooling labor market that’s nearing levels last seen during the height of the Covid-19 pandemic.
Data from job search site Adzuna shows vacancies fell 3% in January to 694,000, marking a 16% decline from the same month a year earlier and a nearly 20% drop over the past six months.
This downturn highlights ongoing challenges in the UK’s employment landscape, where hiring has slowed amid economic pressures, including rising national insurance contributions, high living costs, and the increasing adoption of artificial intelligence.
The latest figures from Adzuna show advertised roles at their lowest since January 2021, when pandemic restrictions severely curtailed economic activity.
Andrew Hunter, co-founder of Adzuna, noted the discrepancy between official statistics and real-time job ad data. As economists point to ONS data that suggests hiring rates are levelling off, the live picture from advertised jobs tells a different story. Our January figures show hiring is approaching pandemic-era levels.”
He added that while some sectors like teaching and domestic cleaning are still adding jobs, the overall market remains unstable, particularly for new entrants.
What the official data says
Official data from the Office for National Statistics (ONS) paints a slightly different picture, with estimated vacancies holding steady at around 726,000 for the three months ending January, down 9.2% from a year ago but showing a marginal 0.3% uptick from the prior period.
This survey-based figure, which includes non-advertised positions, contrasts with Adzuna’s tally of online postings, underscoring how different methodologies can yield varying insights into labor market health.
The slump is particularly acute for younger workers and recent graduates. Graduate job postings plummeted 19.1% month-over-month to below 10,000 for the first time since Adzuna began tracking in 2016, exacerbating youth unemployment concerns. entry-level roles also declined by 4.5% to 197,000. With more than two jobseekers competing for each vacancy on average, competition has intensified to levels not seen in years.
Despite the hiring slowdown, there are pockets of resilience. Wages continue to rise, outpacing inflation with an average advertised salary increase of about 7% annually.
Sectors such as healthcare, logistics, and education are holding up, with strong demand for roles like healthcare support workers, warehouse staff, and teachers.
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