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UK job vacancies fall for fifth month as employers rein in hiring

December 22, 2025

Optimism among UK SMEs continues to rise for the third consecutive year, with 69% feeling confident about the future. Businesses plan growth, investment, and AI adoption in the year ahead.

UK job vacancies fell for a fifth consecutive month in November as employers became increasingly cautious in the run-up to the autumn Budget, according to new figures that underline the growing fragility of the labour market.

Data from Adzuna showed a 6.4 per cent month-on-month drop in advertised roles, with total vacancies falling to 745,448. Compared with November last year, vacancies were down 15 per cent — the sharpest annual decline recorded so far in 2025.

November is typically a strong month for recruitment, particularly as businesses hire ahead of the Christmas trading period. However, weeks of speculation about possible tax rises appear to have prompted firms to delay or cancel recruitment plans, contributing to what Adzuna described as one of the toughest environments for jobseekers in recent years.

Andrew Hunter, co-founder of Adzuna, said the figures reflected a marked shift in employer behaviour. “November is historically a strong month for hiring, so this latest contraction is yet further proof employers are erring on the side of caution,” he said. “The autumn Budget added further uncertainty as we headed into the festive period, and that has weighed heavily on recruitment decisions.”

The slowdown has been particularly severe for those entering the workforce. Adzuna reported a 24 per cent fall in entry-level vacancies, pushing them to their lowest level since 2021. The company said youth unemployment in the UK is now rising at the fastest pace among G7 economies.

Official figures published earlier this month by the Office for National Statistics showed the unemployment rate rising to 5.1 per cent in the three months to October — the highest level since the pandemic. The ONS also confirmed that the UK economy contracted by 0.1 per cent in October, adding to concerns about weakening demand.

The deteriorating outlook helped prompt the Bank of England to cut interest rates to 3.75 per cent from 4 per cent in an effort to stimulate growth and support employment.

Competition for available roles has intensified as vacancies decline. Adzuna estimates there are now more than two candidates for every advertised job, increasing pressure on applicants across most sectors.

While advertised wage growth remains elevated at more than 7 per cent according to Adzuna’s data, this contrasts with official pay figures from the ONS, which show private sector wages rising at closer to 3 per cent — suggesting a disconnect between advertised salaries and actual earnings growth.

Sector-level data points to particularly sharp cutbacks in logistics, where vacancies fell almost 15 per cent over the month. Retail roles dropped by 5 per cent, reflecting weak consumer demand at a critical time of year.

Retailers will be hoping for a late surge in spending to salvage the Christmas period, but the ONS reported last week that retail sales volumes slipped by 0.1 per cent in November despite Black Friday falling within the month — a worrying sign for a sector heavily reliant on year-end trading.

With vacancies continuing to fall and employers remaining cautious, economists warn that the jobs market may remain under pressure into the new year unless confidence improves and demand begins to recover.