UK job vacancies have continued to decline, signalling a cooling labour market as employers adopt a more cautious approach to hiring.
Figures published by the Office for National Statistics (ONS) in April 2026 show that vacancies have now been falling for over 20 consecutive months, dropping to around 900,000 roles, down from a peak of more than 1.3 million in 2022. The shift reflects a move away from the acute labour shortages seen in the immediate post-pandemic period.
A More Competitive Jobs Market
While unemployment remains relatively low at around 4.9%, the reduction in available roles is increasing competition, particularly at entry and mid-level.
Recruiters report higher application volumes and longer hiring timelines, as employers become more selective. Data from the latest KPMG and Recruitment and Employment Confederation (REC) Report on Jobs, also released in April 2026, shows permanent placements continuing to decline, alongside weaker demand for temporary staff.
Employer Caution Driving Hiring Decisions
Employers are responding to ongoing economic uncertainty, including inflation, interest rates, and global pressures, by tightening recruitment.
Many organisations are focusing on essential roles while delaying hiring in non-critical areas. This is particularly evident in sectors that expanded rapidly in recent years, including technology and administrative support.
Although the pace of decline has eased, the REC notes that businesses are still taking a cautious approach to workforce expansion.
Impact on Entry-Level Opportunities
The shift is having a clear impact on entry-level roles.
Positions that have traditionally provided access to the workforce are becoming less available, as employers prioritise candidates who can contribute immediately. Recruiters say this is contributing to “experience inflation,” where even junior roles now require prior experience or specialised skills.
This is creating additional barriers for young people, career changers, and those returning to work.
Uneven Impact Across Sectors
The slowdown is not uniform across the economy.
Demand remains strong in sectors such as healthcare, construction, and logistics, where structural shortages persist. In contrast, retail and administrative roles have seen more pronounced declines in hiring activity.
This divergence is contributing to an increasingly uneven labour market, with opportunities concentrated in specific industries and regions.
Wider Labour Market Context
The fall in vacancies comes alongside other signs of a softening labour market.
ONS data released in April 2026 shows that wage growth has slowed to its lowest level since 2020, while the number of payrolled employees has edged down in recent months.
Together, these trends point to a jobs market that is stabilising, but becoming more selective, with fewer opportunities in some sectors and greater competition for available roles.
Kim Cockayne