Key facts
- UK job postings decreased by 11% in the first seven months of 2026.
- Advertised wage growth slowed to 3.9% annually by June.
- Graduate job postings saw a 7% year-on-year decline.
- Demand for AI skills reached a record high, appearing in 9.4% of job postings.
- New Prime Minister Andy Burnham plans to align technical education with employment needs.
British hiring demand has fallen across most sectors in the first half of 2026, with graduate job postings reaching their lowest point since 2020, according to a survey by recruitment platform Indeed. The report, published on Monday, also indicated a record high in demand for artificial intelligence skills.
Indeed senior economist Jack Kennedy stated that the UK's labor market is under sustained pressure, with falling hiring demand and gradually cooling posted wage growth. He noted this is particularly challenging for graduates and younger workers seeking to establish their careers.
Job postings overall declined by 11% between the start of 2026 and July 17, and are 32% lower than pre-pandemic levels. Advertised wage growth cooled to 3.9% annually in the three months to June, the slowest rate since February 2022. Graduate job postings specifically were down 7% year-on-year as of July 10, marking their lowest level for the time of year since 2020. Summer job postings for temporary and seasonal roles were also at their weakest in four years.
Conversely, demand for AI skills has surged, with AI or related tools and programs appearing in 9.4% of UK job postings by the end of June, a record high. The UK has been grappling with a worsening youth unemployment crisis since the pandemic, with over a million individuals aged 16-24 not in education, employment, or training. Last week, Prime Minister Andy Burnham announced plans to better align technical education and training for young people with local employment needs.