UK Job Vacancies Drop to Lowest Level Since Pandemic, Raising Youth Employment Concerns
The number of job vacancies in the UK has fallen to its lowest point in five years, signaling a sharp slowdown in the labour market and intensifying concerns over youth employment. Research from job site Adzuna shows that advertised roles dipped 3% in January 2026, falling to 695,000 — the first time vacancies have dropped below 700,000 since January 2021.
Graduate opportunities have also seen a significant decline, slipping below 10,000 positions for the first time since Adzuna began tracking this category in 2016. The data highlights a continuing downward trend in recruitment that began in late 2025, with the total number of vacancies 16% lower than in January 2025 and nearly 20% lower than six months earlier.
The drop in advertised jobs comes at a time when official statistics show UK unemployment rising to a five-year high of 5.2%, alongside slowing wage growth. Young people appear to be disproportionately affected, with unemployment among 18- to 24-year-olds reaching 14% in the final quarter of 2025, the highest level since 2020, and nearly 11% if pandemic-era figures are excluded. Analysts warn that Britain may be slipping in the global youth employment rankings as competition for roles intensifies.
Several factors are contributing to the decline in vacancies. Businesses have been reining in hiring due to the increased cost of labour, including rises in national insurance contributions and the minimum wage, implemented in the last two budgets by Chancellor Rachel Reeves. Companies are also increasingly investing in automation and artificial intelligence, prioritizing technological solutions over recruitment to control costs.
Geographically, the fall in vacancies was widespread across the UK, but the steepest monthly decline occurred in London, where advertised roles dropped by almost 6% in January. Meanwhile, competition for jobs has grown noticeably, with 2.4 jobseekers per vacancy, up from 2.27 in December, indicating tighter labour market conditions and greater difficulty for applicants in securing positions.
The trends outlined by Adzuna underline how sharply the employment landscape has shifted in recent months. Employers are cautious amid rising operational costs, leaving fewer opportunities, particularly for younger workers seeking entry-level or graduate roles. This slowdown has prompted calls from policymakers and industry leaders to focus on measures that support youth employment and maintain job growth, especially in urban centres such as London, where demand remains competitive.
For graduates and young jobseekers, the current climate is likely to pose continued challenges. While sectors such as technology and healthcare still show resilience, traditional entry-level opportunities are contracting, requiring flexibility and adaptation from candidates navigating the tight labour market.
As Britain faces these changes, the data highlights the intersection of economic policy, business strategy, and labour supply. The ongoing reduction in vacancies and heightened competition is expected to remain a critical concern for policymakers, employers, and jobseekers alike throughout 2026.
