Job vacancies at lowest level since 2021 as London worst affected
The UK’s job market took another hit after total vacancies fell to the lowest level since 2021, with London the region facing the biggest drop in open roles.
The number of jobs advertised plummeted 16 per cent year-on-year to January, dipping below 700,000 for the first time since January 2021, according to job search platform Adzuna.
Labour’s employment rights act has been blamed in recent weeks for piling further hiring costs on British businesses, and chief financial officers at retail firms said they may be forced to fire staff as the reforms are implemented.
The dip in hiring meant 694,940 total roles were being advertised in January, according to Adzuna, marking a three per cent drop from December.
But advertised salaries grew faster than inflation, up six per cent from January 2025 to an average of £43,289.
London jobs market falls fastest
London was the British region to suffer the fastest monthly drop in hiring, with vacancies down 5.6 per cent.
The capital was followed closely by the East Midlands and North West England, where job openings were four per cent lower than in December.
Andrew Hunter, Adzuna co-founder, said: “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, and with graduate roles falling to a record low, this suggests the market is far from being on stable footing – yet.”
But Hunter found signs of resilience in steady wage rises and strong labour growth in some sectors like teaching and cleaning.
He said: “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.”
Graduates worst hit
Graduate vacancies fell below 10,000 for the first time since Aduzuna’s tracker began in 2016, having almost halved year-on-year (down 45 per cent).
Youth unemployment is at its highest level – 16.1 per cent – since 2014 and has climbed above the EU average for the first time.
Entry-level jobs fell four per cent annually to 197,044 vacancies.
IT remained the highest-paid sector in January, with average salaries climbing to £63,428, and maintenance jobs saw the biggest annual fall in pay at three per cent.