UK job vacancies fall to weakest level since 2020 as wage growth slows

Job vacancies in the United Kingdom GBfell to their lowest level since the 2020 pandemic in December, marking the sixth consecutive monthly decline in a cooling labour market. Data released by online jobs portal Adzuna showed that vacancies dropped to 716,791 from 745,448 in November, representing a 15% reduction compared with December 2024. This trend solidified 2025 as the weakest full year for hiring since the onset of the COVID-19 pandemic.

Simultaneously, the growth rate for advertised salaries decelerated to 6.8% year-over-year in December, down from 7.7% recorded in November. This softening in wage pressure is a significant signal for the Bank of England, as policymakers monitor the jobs market for signs of easing inflation. The reduction in both vacancy volumes and salary growth narrows the domestic inflation challenge, which directly informs future monetary policy decisions and interest rate trajectories throughout 2026.