A long-term trend continues to see the number of UK job openings fall. While earlier on it was suggested that AI could be the cause, it seems increasingly likely that fears over the economy, and falls in profitability are leading bosses to trim their headcounts.
The number of job vacancies in the UK has tumbled to the lowest level since the pandemic, according to a new survey by jobs site Adzuna. Examining the number of advertised vacancies on its platform, Adzuna found that the number of job openings fell by 3% in January to just 695,000 – the first time that figure has been beneath 700,000 since the first month of 2021.
As often is the case, younger workers are being hit hardest by the process. Graduate roles plummeted beneath 10,000 for the first time since Adzuna began tracking its data in 2016. Unemployment among 18 to 24-year-olds spiked to 14% in the final three months of 2025, the highest rate in five years, leading to concerns that Britain is slipping down the global youth employment league table.
A bright spot for jobseekers is said to be wage growth. Average advertised salaries rose to £43,289 in January, which marked an almost 6% annual increase, comfortably outpacing inflation, which fell to 3% at the same time. However, Adzuna suggested these elevated costs might also be contributing to the slowdown in hiring – as companies wait and see what the turbulent economic picture brings, amid geopolitical trade disruptions, and a stock market seeming increasingly precarious, having placed most of its eggs in the basket of AI – while the technology is yet to live up to the profitability it promised.
Andrew Hunter, a co-founder of Adzuna, said, “Although competition for roles remains high, these pockets of strength suggest businesses are beginning to adapt to tougher conditions and invest where it matters. For jobseekers in early 2026, the market remains challenging, with fewer vacancies and intense competition, but continued wage growth suggests employers are still willing to pay for the right skills.”
The news continues the trends of 2025’s labour market. In August, the Office for National Statistics found the jobs market had furthered cooled, as vacancies fell and the number of people on payrolls dropped. Job openings fell by 5.8% to 718,000 between May to July 2025 across nearly all industries, according to the ONS.
It said there was evidence that some firms may not be recruiting new workers or replacing people who have left. Meanwhile, Average wage growth remained at 5%, and the unemployment rate was unmoved at 4.7%. The estimated drop in people on payrolls of 8,000 between June and July, signalled a “very gradual cooling” which seems to have gone on into the new year.
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