Home Business NewsUK hiring edges up in February but annual vacancies remain sharply down

UK hiring edges up in February but annual vacancies remain sharply down

by LLB staff reporter
31st Mar 26 8:26 am

The UK job market saw a modest rebound in February, with advertised vacancies rising 4.41% month-on-month to 725,571, marking the first improvement since June 2025, according to the latest report from Adzuna.

Despite the monthly uptick, annual vacancies remain down 15.6% year-on-year, the weakest performance since 2021. Sectors such as graduate roles continue to struggle, falling 45% annually, while total vacancies remain roughly half the peak levels seen in early 2022.

Unemployment, meanwhile, held steady at 5.2%, the highest rate since 2020, and job competition edged slightly higher, with 2.37 applicants per vacancy compared with 2.35 in January. Analysts note that these figures reflect the market prior to any potential labour volatility from the ongoing Middle East conflict.

Salary trends offer a more positive picture. The average advertised salary rose 1.16% month-on-month to £43,791 and 5.53% year-on-year, outpacing current inflation of 3%. IT (+13.3%) and HR & Recruitment (+9.5%) led annual wage growth, while Maintenance, Travel, and Social Work were the only sectors to see salary declines.

Sector performance remained mixed. Retail vacancies fell 7.9% month-on-month, whereas teaching jobs led growth with +10.4%. Annual declines were steepest in Logistics & Warehouse (-31.1%), Hospitality & Catering (-29.2%), and Accounting & Finance (-24.3%). Graduate roles rose 15.6% month-on-month but were down 45.5% year-on-year, with average salaries at £25,869, up 15.8% from February 2025.

READ MORE Is there a new solution to London’s rising unemployment rate? – London Business News | Londonlovesbusiness.com

Recruitment speed varied by role, with Admin positions filling the fastest at 31.7 days and Energy, Oil & Gas, and IT roles taking the longest (38.4 and 37.5 days, respectively).

Regional trends showed mixed recovery. Yorkshire & The Humber (+8.6%), Northern Ireland (+4.6%), and North West England (+3.8%) led monthly vacancy growth, while Wales (-24.7%) and Scotland (-19.8%) suffered the largest annual declines. London remained the highest-paying region, with an average salary of £50,592, up 6% year-on-year, whereas the North East saw the most competitive market, with 3.78 jobseekers per vacancy.

Popular roles shifted slightly, with Warehouse Worker retaining the top spot, Cleaner climbing to second, and Healthcare Support Worker falling to seventh. Lorry Driver, Delivery Driver, Social Care Worker, Labourer, and Kitchen Assistant rounded out the most searched-for roles.

The February figures underline a cautious optimism for the UK labour market, with monthly gains tempered by persistent annual declines and uneven sectoral performance.

Andrew Hunter, co-founder of job matching platform Adzuna, said: “February’s data offers a rare moment of optimism in a market that has been contracting for months – vacancies are up for the first time since June, wages continue to outpace inflation and employers are still willing to pay for the right skills.

“Of course, the UK Government’s Spring Statement reminds us that such recovery needs to be kept in perspective. With unemployment forecast to rise further in 2026, wage growth expected to slow, and with the Middle East conflict adding a new layer of uncertainty that threatens to derail progress, the underlying fragility hasn’t gone away. It’s too early to call February a turning point, but it is, at least, a welcome bump.”

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