According to Indeed, the number of job postings in the United Kingdom has plummeted by 11% since the beginning of 2026. This decline has left recruitment activity a staggering 32% lower than the figures recorded in February 2020.
In contrast, Europe has witnessed a 5% uptick in job postings compared to pre-pandemic levels, while the United States has fared slightly better, showing an increase of 2%.
The mid-year labour market update from the job board indicates that the majority of occupational sectors have experienced year-on-year declines, notably in professional services, hospitality, and retail.
Conversely, a select few segments within technology, engineering, and healthcare have observed a rise in hiring demand.
Notably, graduate job postings have fallen approximately 7% year-on-year, marking the lowest point for this period since 2020.
Simultaneously, summer job postings, which encompass temporary roles in hospitality, retail, tourism, and events, have also reached their weakest occurrence since 2022.
During the three-month period leading to June, wage growth in job listings has slowed to 3.9% annually, the lowest rate since February 2022.
The sectors experiencing the most significant wage pressures remain technology, healthcare, and engineering, primarily due to the persistent difficulty in sourcing specialized skills.
In stark contrast, many lower-wage categories that originally saw robust wage growth post-pandemic have now observed a reduction in pay pressures.
Meanwhile, mentions of artificial intelligence (AI) within job postings have surged in 2026. AI is currently referenced in a historic 9.4% of UK job listings, spanning various functions including HR, marketing, finance, and management, despite an overall downturn in hiring demand across these fields.
Indeed has characterized this phenomenon as indicative of a “two-speed labour market” within the knowledge economy, where recruitment volumes are sluggish, but employer interest in practical AI competencies is on the rise.
Additionally, job seeker inquiries for AI-related roles have surged sevenfold since the introduction of ChatGPT in late 2022.
Jack Kennedy, a senior economist at Indeed, stated: The UK’s labour market is facing enduring challenges. Hiring demand is dwindling across most sectors, while posted wage growth is gradually softening.
This poses particular difficulties for graduates and younger workers, who are vying for fewer prospects to establish themselves in their careers.
He further noted: Simultaneously, employers are evolving their criteria for potential hires. AI literacy is no longer exclusive to specialized technology positions; it is increasingly encompassing fields such as marketing, media, finance, and scientific research.
The outcome is a bifurcated labour market, characterized by overall weak hiring juxtaposed with a burgeoning demand for a novel set of skills.
Source link: Personneltoday.com.
