| UK vacancies | 707,000 (March to May 2026) |
| Last seen this low | February to April 2021 |
| Unemployment | 4.9% (three months to April 2026) |
| New hires April | 540,000 - lowest since March 2021 |
| Payrolled employees | Down 210,000 in April 2026 (provisional) |
Last reviewed: 18 June 2026
UK job vacancies fell to 707,000 in the March to May 2026 period, the lowest level since February to April 2021, according to ONS data published today. New hires tracked by HMRC dropped to just under 540,000 in April 2026, also the lowest since March 2021. The early estimate of payrolled employees for April fell by 210,000 on the year and 100,000 on the month to 30.2 million. Professional services recorded the largest fall in vacancies, with retail and hospitality also showing substantial weakening.
Why the Labour Market Is Cooling
Higher employer National Insurance contributions from April 2026 have materially raised the cost of employment, particularly for smaller businesses and labour-intensive sectors. AO World confirmed today it has moved 150 sales and call-centre roles to South Africa citing NI cost increases of 8.5 million pounds to its cost base. The pattern in ONS data is consistent with employers responding to higher employment costs through hiring freezes and non-renewal of contracts rather than headline redundancy announcements. The Iran conflict adds uncertainty that makes boards reluctant to commit to permanent headcount expansion.
What This Means for Jobseekers
A market with 707,000 vacancies is still functioning - pandemic peaks exceeded 1.3 million - but the direction matters. With vacancies falling and new hires at five-year lows, bargaining power has shifted toward employers. Time to hire is lengthening from the candidate perspective. The sectors most affected are professional services, retail and hospitality. Workers in those sectors facing redundancy should expect a longer search than was typical in 2022-2023. Statutory redundancy pay is based on age, weekly pay capped at 643 pounds for 2026-27, and length of service. Claims from insolvent employers go through the Insolvency Service Redundancy Payments Service at gov.uk.
What This Means for Workers Already in Employment
A cooling jobs market reduces workers' ability to negotiate pay rises or move quickly if current employment does not meet expectations. Wage growth has been easing toward target-consistent rates. For workers on fixed term contracts or in high-vacancy-reduction sectors, non-renewal risk is higher than 18 months ago. Anyone considering a voluntary move should have a clear plan before handing in notice - the offer pipeline is thinner and the ability to move again quickly if a role does not work out is diminished.
Frequently Asked Questions
How many job vacancies are there in the UK right now?
UK job vacancies stood at 707,000 in the March to May 2026 period according to ONS data published 18 June 2026. This is the lowest since February to April 2021 and continues a sustained decline from the post-pandemic peak of over 1.3 million in 2022.
What is the UK unemployment rate in 2026?
The UK unemployment rate was 4.9% in the three months to April 2026, down slightly from 5.0% in the previous period. Headline unemployment is relatively stable but underlying indicators including falling vacancies and declining new hires signal material weakening beneath the surface.
What are my rights if I am made redundant?
Employees with two or more years of continuous service are entitled to statutory redundancy pay based on age, weekly pay (capped at 643 pounds in 2026-27) and years of service. Employers must give the statutory minimum notice period. Claims from insolvent employers go through the Insolvency Service at gov.uk/claim-redundancy.
