UK Job Vacancies Hit Five-Year Low Amid Rising Competition

Recent research from the job search site Adzuna indicates that the number of job vacancies in the UK has fallen to its lowest level in five years, reaching 694,000 in January 2026. This marks a 3% decrease from the previous month and is the first time vacancies have dipped below 700,000 since January 2021. The decline reflects a broader trend observed throughout late 2025, with vacancies down 16% compared to January 2025 and nearly 20% lower than six months prior. The contraction in job opportunities is attributed to several factors, including increased national insurance contributions and minimum wage hikes announced by Rachel Reeves in her recent budgets. Additionally, many companies are prioritizing investments in automation and artificial intelligence over traditional hiring.

The GuardianThe Independent

The downturn in job vacancies has disproportionately affected young jobseekers, with unemployment among 18- to 24-year-olds rising to 14% in the final quarter of 2025, the highest rate in five years. The competition for available roles has intensified, with an average of 2.4 jobseekers competing for each vacancy, up from 2.27 in December 2025. The most sought-after positions include healthcare support workers, warehouse staff, lorry drivers, labourers, and kitchen assistants.

The GuardianThe Independent

Despite the challenging job market, there is a silver lining for jobseekers: average advertised salaries have increased to £43,289 in January, reflecting a nearly 6% annual rise that outpaces inflation, which fell to 3% last month. Andrew Hunter, co-founder of Adzuna, noted that while competition remains high, certain sectors are adapting to the tougher conditions, indicating a willingness among employers to pay for the right skills.

The Guardian

Andrew Hunter emphasized the contrasting narratives emerging from the data, stating, "As economists point to ONS data that suggests hiring rates are levelling off, the live picture from advertised jobs tells a different story." He acknowledged the resilience in specific sectors, such as teaching and domestic services, which continue to add jobs, suggesting that demand has not entirely vanished from the economy.

The Independent

Critics argue that the current job market conditions are unsustainable, particularly for young people entering the workforce. The significant drop in graduate job opportunities, which fell below 10,000 for the first time since Adzuna began tracking in 2016, raises concerns about the long-term implications for youth employment in the UK.

The Guardian

While the overall trend indicates a decline in job vacancies, some sources highlight resilience in specific sectors. However, the extent of this resilience and its impact on the broader job market remains unclear, with differing interpretations of the data.

The Guardian

• “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.” — Andrew Hunter, Co-founder of Adzuna

The Guardian

• “Our January figures show hiring is approaching pandemic-era levels, and with graduate roles falling to a record low, this suggests the market is far from being on stable footing – yet.” — Andrew Hunter, Co-founder of Adzuna

The Independent