UK job vacancies fall to five-year low as hiring slowdown deepens

• UK job vacancies have dropped to the lowest level in five years.
• Graduate roles fall below 10,000 for the first time on record.
• More jobseekers are chasing fewer openings as hiring slows.

The number of UK job vacancies has slipped to its lowest point in five years, underlining a clear cooling in the labour market as hiring momentum continues to fade. New figures from job search site Adzuna show advertised roles fell by 3 per cent in January to about 695,000, dipping below the 700,000 mark for the first time since January 2021.

The latest data adds to signs of a broader UK hiring slowdown, with vacancies down 16 per cent compared with January last year and nearly 20 per cent lower than six months earlier. The trend suggests employers have been steadily scaling back recruitment since mid-2025.

Hiring pullback gathers pace

The drop comes alongside wider pressures facing businesses, including higher labour costs following increases in national insurance contributions and the minimum wage announced in recent budgets by Chancellor Rachel Reeves. Some firms also appear to be leaning more towards automation and artificial intelligence tools rather than expanding headcount.

Official figures released earlier showed unemployment has climbed to a five-year high of 5.2 per cent, while wage growth has started to ease. Together, the numbers paint a picture of a labour market losing some of its earlier resilience.

Graduate opportunities have been particularly hard hit. Vacancies for entry-level roles fell below 10,000 for the first time since Adzuna began tracking the data in 2016, pointing to a tougher start for young people entering the workforce.

Young workers feel the strain

The slowdown is being felt most sharply among younger jobseekers. Unemployment among people aged 18 to 24 rose to 14 per cent in the final three months of 2025, the highest level in five years, or close to 11 per cent excluding pandemic-era disruption. The figures have added to concerns that the UK may be slipping down global rankings for youth employment.

Regionally, the decline in vacancies has been widespread, though London recorded the steepest monthly fall, with advertised roles dropping by nearly 6 per cent in January.

Competition is also intensifying. There were about 2.4 jobseekers for every vacancy, up from 2.27 a month earlier, suggesting applicants are finding it harder to secure roles as opportunities shrink.

While the figures do not necessarily signal a sharp downturn, they point to a labour market that appears to be entering a more cautious phase, with employers taking a measured approach to hiring as economic uncertainties linger.