The number of job vacancies in the UK has tumbled to the lowest level in five years, research suggests, falling to levels not seen since the pandemic.

The number of jobs being advertised slid by 3% in January to 695,000, according to the job search site Adzuna, marking the first time advertised vacancies have dropped below 700,000 since January 2021.

Graduate jobs fell below 10,000 for the first time since Adzuna began tracking this in 2016.

The research comes days after official figures showed unemployment in the UK had risen to a five-year high of 5.2%, at a time when wage growth is slowing and concerns are increasing that young people are bearing the brunt of the slowdown in hiring.

The fall in the number of vacancies marked a continuation in the downward trend seen during late 2025 and showed a 16% slide compared with last January and a near-20% fall since six months earlier.

It highlights how sharply job opportunities have shrunk since mid-2025, as employers have reined in their hiring in the face of increases in national insurance contributions and the minimum wage announced by Rachel Reeves in her last two budgets.

The extra cost of labour for business also comes as some companies are prioritising investment in automation and artificial intelligence tools rather than recruitment.

This trend has particularly affected young jobseekers, at a time when unemployment among 18- to 24-year-olds rose to 14% in the final three months of 2025, the highest rate in five years, or nearly 11 excluding the pandemic, adding to concerns that Britain is slipping down the global youth employment league table.

While the number of vacancies advertised has declined across the UK, the sharpest monthly drop was in London, with advertised roles falling by almost 6% in January.

Competition for jobs has increased, the research found, with 2.4 jobseekers for each vacancy, up from 2.27 in December.

The most searched-for jobs included warehouse staff, healthcare support workers, lorry drivers, labourers and kitchen assistants.

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.”

However, one bright spot for jobseekers remains wage growth. Average advertised salaries rose to £43,289 in January, marking an almost 6% annual increase and comfortably outpacing inflation, which fell to 3% last month.