(Photo: Drazen Zigic via Magnific)
Official figures show an estimated 705,000 vacancies in the UK between February and April 2026, the lowest level since early 2021, as young workers face growing competition for entry-level jobs.
The number of vacancies was down 28,000 from the previous quarter, according to the Office for National Statistics (ONS).
The ONS said this was the lowest level of vacancies since February to April 2021, when the country was still emerging from Covid-19 restrictions.
Vacancies are now 54,000 lower than a year ago and 83,000 below their pre-pandemic level in January to March 2020.
The fall suggests that the labour market is continuing to cool, as employers are becoming more cautious about hiring amid economic and geopolitical uncertainty.
The largest quarterly falls were seen in some of the UK’s lowest-paid sectors.
Vacancies in wholesale and retail fell by 7,000, while accommodation and food services dropped by 6,000.
The arts, entertainment and recreation sector saw vacancies fall by 4,000, with the largest percentage fall over the quarter. Over the year, vacancies in the sector fell by 29.1%, the largest annual percentage decrease of any industry.
The latest figures come as wider labour market data showed UK unemployment rising to 5.0% in January to March 2026, while payrolled employee numbers also fell over the year.
Young workers face growing pressure
Young workers appear to be facing particular pressure as the unemployment rate among 18 to 24-year-olds was nearly three times higher than the overall rate at 14.7%.
The Work Foundation at Lancaster University said young people were “bearing the brunt” of a weak labour market, with youth unemployment at 14.7%, the highest rate in more than a decade.
Ben Harrison, director of the Work Foundation, said: “One in seven young people is now seeking work. This is the highest rate in more than a decade, reaching levels not seen since September-November 2014.”
He added that the proportion of young jobseekers out of work for more than a year had risen to 22.7%, while falling vacancies were making it harder for young people to take their first steps into work.
There were 2.5 unemployed people per vacancy in January to March 2026, unchanged from the previous quarter but up from 2.1 a year earlier, according to the ONS. The figure suggests there is now more competition for each available role.
Chief Executive Lord Wolfson of Next, one of the largest clothing and homeware retailers, warned of a “dramatic fall” in entry-level job opportunities.
Lord Wolfson told the BBC that Next now receives 19 applications for every shop vacancy, almost double the 10 applications per role it received in 2024.
Next is the largest clothing retailer by sales volume in the United Kingdom. (Photo: Next Mediaroom)
He said: “That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment.
“Youth unemployment is really a symptom of wider problems with employment in the economy, and of course, if you’ve got fewer jobs, the people who suffer most are the people with the least experience, and that is the youngest.”
Government defends jobs support
Responding to concerns about unemployment, the Department for Work and Pensions (DWP) told Uproute that the latest figures showed there were 416,000 more people in work than a year ago.
Work and Pensions Secretary Pat McFadden said: “The latest figures show there were 416,000 more people in work than there was this time last year. While this is encouraging, we know the conflict in the Middle East is casting a shadow on the labour market.
The number of people aged 16 and over in employment rose from around 33.98 million in January to March 2025 to around 34.39 million in January to March 2026, according to ONS labour market data.
Secretary McFadden added: “However, thanks to the choices we have made, we are in a stronger position to deal with the continuing volatility and costs of the war in Iran with our economy ranking as the fastest growing of any European G7 country last year.
“Boosting opportunity and tackling youth unemployment in every area remains our priority, and through our Jobs Guarantee we are helping young people into work, while engaging employers to ensure they have the skilled workforce that they need.”
Despite the fall in vacancies, the ONS urged caution when interpreting the quarterly change. It said the 28,000 fall remains within the confidence interval of around plus or minus 32,000 vacancies, meaning the figures should be read as estimates rather than precise counts.
Vacancy estimates are based on a three-month average from the ONS Vacancy Survey, which collects data from employers across the UK.
