Job postings sit 19% below their pre-pandemic baseline as hiring demand remains weak

New data from Indeed suggests the UK labour market will enter 2026 in a subdued state, with job postings 19 percent below their pre-pandemic level.

This is an 8 percent year-on-year decline, though broadly unchanged since mid-April and up 4 percent over the past month.

The analysis – covering job postings from 1 January to 21 November 2025 – also highlights the UK as an outlier, with postings in Europe and North America remaining above pre-pandemic levels.

Low-wage occupations (20 percent below baseline) are tracking weaker than high-wage roles (14 percent below). This contrasts with Germany, France and Italy, where low-wage postings remain comparatively stronger. In the UK, sectors such as retail, hospitality and leisure – which employ large numbers of lower-paid workers – have been more exposed to rising payroll costs and substantial minimum wage increases.

Regionally, the level of job postings is down most versus pre-pandemic in the South East (-31 percent) and London (-29 percent), both heavily exposed to weaker demand in office-based and professional roles. Only Northern Ireland (+20 percent) and the North East (+16 percent) remain above their pre-pandemic baselines. All twelve UK regions saw declines in job postings over the past year.

Employers appear to be scaling back wider reward packages as cost pressures persist and hiring conditions soften. The share of job postings mentioning at least one benefit fell to 64.6 percent in September, down from 66.7 percent a year earlier.

Medical and dental benefits were the only category to rise, increasing 0.6 ppts, suggesting employers are prioritising core wellbeing-related perks.

The share of job postings including salary information fell to 55.3 percent in October, the lowest since December 2021. This trend likely reflects a looser labour market, where employers feel less need to advertise salary upfront.

The recent drop reverses several years of rising pay transparency and may partially shift again in 2026 if some employers adopt higher standards to align with incoming EU transparency rules, particularly those operating across multiple markets.

Mentions of hybrid or remote work remain close to record levels at 15.2 percent of postings. Employers are tightening expectations: 56 percent of hybrid roles now require at least two or three days a week in the office, up from 43 percent two years ago. The share requiring only one day on-site has fallen from over one-third to 15 percent.

Signing bonuses have continued to decline, appearing in around 1 percent of postings, down from a peak of 2.2 percent in late 2022. These incentives remain most common in harder-to-fill sectors such as veterinary, personal care & home health, and childcare.

Inbound jobseeker interest remains below its 2023 peak. Overseas searches accounted for 4.9 percent of all UK job searches in the three months to October, compared with 6.3 percent two years earlier.

Mentions of AI in UK job postings have reached their highest level on record, appearing in 5.4 percent of listings. This places the UK ahead of peer economies including France, Germany, Australia, Canada and the US.

Graduate opportunities saw a seasonal rise in September but remain down 13 percent year-on-year in absolute terms and 2 percent lower as a share of total postings as of 21 November. They now sit at their lowest level for this point in the year since 2020, reflecting a tougher environment for early-career jobseekers.

In a softer overall labour market, employers have been prioritising holding onto existing staff while being cautious on new hiring, particularly in entry-level positions, making it harder for new entrants to secure their first role.

Jack Kennedy, Senior Economist, Indeed, said, “While the UK economy started 2025 on a stronger footing, the labour market has clearly cooled as the year has progressed. Job postings remain well below their pre-pandemic level and, despite a recent stabilisation, hiring appetite is still subdued. This is creating a tougher environment for jobseekers, particularly new entrants such as graduates.

“At the same time, employers are adjusting to a softer market by trimming benefits and becoming more selective about when and how they advertise pay. Yet flexibility remains a powerful draw. Even with tighter office expectations, hybrid work continues to feature in a large share of postings, reflecting its importance to both employers and workers.

“The picture heading into 2026 is one of caution rather than crisis. Job losses have remained modest, but job creation is clearly slower. Much will depend on how economic conditions evolve – but for now, the balance of power sits more firmly with employers than in recent years.”