The United Kingdom’s labour market demonstrated a continued, albeit uneven, recovery in May, with job vacancies registering a fourth consecutive month of growth since a notable downturn that commenced in mid-2025. While the overall picture suggests a gradual healing process, stark disparities persist across sectors, and the outlook for new graduates has deteriorated alarmingly, reaching its lowest point in recent memory. This complex landscape underscores the evolving challenges facing employers and job seekers alike, demanding a nuanced understanding of underlying economic forces and the effectiveness of current economic policies.
A Market in Transition: May’s Key Indicators
New data released by the job matching platform Adzuna revealed that UK vacancies climbed by 2.85% month-on-month in May, reaching a total of 799,737. This sustained upward trajectory marks the first prolonged period of growth since the economic contraction of mid-2025, a period characterised by rising inflation and cautious business investment. The consistent growth has significantly narrowed the annual decline in vacancies to 6.84%, representing a marked improvement from January’s figures, which saw a sharper 16.1% year-on-year fall. This suggests a potential stabilisation and a slow rebound from the downturn’s trough experienced in the latter half of the previous year.
These findings from Adzuna align with broader market intelligence, as corroborated by the latest Recruitment and Employment Confederation (REC) Labour Market Tracker. The REC’s report, published last week, indicated a total of 1.62 million active job postings across the UK in May. This figure reflects a 0.8% increase from April and stands 8% higher than the number recorded a year earlier. While Adzuna’s data highlights a deceleration in the rate of decline for year-on-year vacancies (focusing on new openings), the REC’s broader tracking of all active postings suggests an overall expansion in the number of available roles compared to the previous year. This slight divergence in year-on-year figures can be attributed to differing methodologies and scopes; Adzuna primarily tracks new vacancies added to its platform, whereas REC monitors a wider array of active postings, including those rolled over from previous months, reflecting a deeper underlying demand and a more comprehensive view of market availability. Together, both reports paint a cautiously optimistic, yet still complex, national employment picture.
The Economic Backdrop: From Downturn to Tentative Recovery
The UK economy has navigated a turbulent period leading up to the current labour market trends. Following a robust post-pandemic rebound in 2024, the "downturn began in mid-2025," as referenced by Adzuna, marked a challenging phase. This period was characterised by persistent inflationary pressures, elevated interest rates aimed at curbing price rises, and a general tightening of fiscal policy. Businesses responded with cautious hiring strategies, and consumer confidence wavered, leading to a contraction in various sectors. The Bank of England, in its efforts to tame inflation, maintained a hawkish stance, impacting borrowing costs and investment decisions across the country.
The recent four-month streak of vacancy growth, therefore, signals a potential inflection point. It suggests that businesses are regaining some confidence, possibly in anticipation of future interest rate cuts or in response to a stabilisation of supply chains and energy costs. The narrowing of the annual decline in vacancies from 16.1% in January to under 7% in May indicates a significant shift in momentum. This aligns with broader economic indicators which, in recent months, have shown a tentative return to positive, albeit modest, GDP growth after a period of stagnation. However, the recovery’s fragility is a constant theme, as global economic uncertainties and geopolitical events continue to cast a shadow.
The Uneven Recovery: Sectoral Winners and Losers
Despite the overarching signs of recovery, Adzuna’s analysis underscores that the market’s resurgence remains highly fragmented. A closer examination of sectoral performance reveals a concentrated pattern of growth, with only a handful of industries driving the bulk of the recent vacancy increases. This uneven distribution highlights ongoing structural shifts within the UK economy, influenced by post-pandemic behaviours, demographic changes, and evolving consumer demands.
Leading the charge in annual vacancy growth were four distinct sectors: domestic help and cleaning, travel, teaching, and trade and construction. Domestic help and cleaning emerged as the undisputed top performer, experiencing a staggering 382% year-on-year increase in vacancies, supplemented by a further 27.7% month-on-month rise in May. This surge suggests a robust demand for household services, possibly reflecting a post-downturn return to pre-downturn spending habits among more affluent households, or a persistent shortage of skilled labour in this area, driving up demand for available workers. Average salaries within this sector also saw a healthy climb of 9.3% over the year, reaching £30,799, indicating a competitive environment for attracting talent. This sector’s growth could also be indicative of increased household disposable income for services, or a shift in work-life balance priorities for many.
Teaching, consistently one of the largest sectors tracked by Adzuna, also demonstrated significant strength, recording 217,275 vacancies in May. This figure represents a substantial 28.5% increase year-on-year, though it experienced a slight monthly dip of 1.6%. The sustained demand for educators points to ongoing efforts to address national teacher shortages, potentially exacerbated by demographic shifts, a post-pandemic re-evaluation of public service careers, and retention challenges within the profession. Government initiatives to recruit and retain teachers, alongside an expanding school-age population, are likely contributing factors.
The trade and construction sector also posted robust growth, with vacancies rising 26.6% annually. This sustained expansion is indicative of continued investment in infrastructure projects, housing development, and renovation activities, which are often key drivers of economic recovery. Government commitments to "level up" the country and invest in green infrastructure could be fueling this demand. The travel sector, while showing an impressive 132% annual increase, was noted by Adzuna to be "flattered by a very low base in 2025 rather than signalling a genuine hiring boom." This cautionary note is crucial, as it suggests that while the sector is recovering from a previous slump – likely a residual impact of the mid-2025 downturn which disproportionately affected discretionary spending – its current growth rates may not be sustainable or indicative of a long-term surge beyond baseline recovery.
Conversely, several of the UK’s historically largest hiring sectors continued to face significant contractions. Healthcare and nursing vacancies, a critical pillar of public services, were down by a substantial 33.3% year-on-year. Similarly, the hospitality and catering sector experienced a 32.2% decline, while logistics and warehouse roles fell by 31.8%. These figures are particularly concerning given that these three sectors collectively represent a substantial portion of the UK’s employment landscape. The ongoing challenges in healthcare could stem from persistent funding pressures, workforce burnout leading to attrition, or shifts in recruitment strategies post-pandemic. The declines in hospitality and logistics might reflect a post-downturn rationalisation of staff, reduced consumer spending on certain services (despite overall economic recovery), or the impact of increased automation and efficiency drives in warehousing. The sustained contraction in these vital sectors poses a challenge to the overall breadth and depth of the economic recovery and raises questions about long-term labour market resilience.
Wage Dynamics and Cost of Living Context
The period of rapid salary growth appears to be moderating, following several months of consistent gains driven by inflationary pressures and intense competition for talent. In May, the average advertised salary across the UK edged down by 0.22% month-on-month, settling at £43,998. Despite this slight monthly decrease, the figure remained 3.76% higher than a year earlier, comfortably outpacing the prevailing rate of inflation, which has seen a gradual deceleration in recent months. This suggests that while the pace of wage increases is slowing, real wages are still experiencing positive growth, offering some relief to households grappling with the residual effects of the cost of living crisis. Economists often view a cooling of wage growth as a sign of the economy stabilising and inflationary pressures subsiding, potentially paving the way for future interest rate adjustments.
London, as the UK’s economic powerhouse, continued to command significantly higher salaries, reflecting its status as a global financial and business hub. Average advertised salaries in the capital reached £51,319 in May, marking a 5.42% annual increase. This made London the only UK region to surpass the £50,000 mark, underscoring its unique labour market dynamics, higher cost of living, and concentrated demand for highly skilled professionals in finance, technology, and other professional services. The sustained growth in London’s salaries, even as national averages cool, points to a concentrated demand for specific high-value skills within the capital, often immune to broader economic fluctuations.
Competition Eases, Transparency Stagnates
The competitive landscape for job seekers showed signs of easing in May, indicating a slightly more balanced supply and demand dynamic. The number of jobseekers per vacancy decreased to 2.14 from 2.22 in April, reaching its lowest level since the downturn intensified in mid-2025. This reduction in competition implies a slightly more favourable environment for applicants, potentially reflecting a combination of increased vacancies and a stable pool of active job seekers, rather than an influx of new entrants.
Concurrently, the average time taken to fill a role also improved, falling to 35 days from 39 days reported in Adzuna’s April analysis. This efficiency gain suggests that employers are finding it quicker to match candidates to roles, which can be a positive indicator of market fluidity and improved recruitment processes, perhaps due to better alignment between available skills and employer needs. Certain roles proved particularly swift to fill: administrative positions took an average of 32.0 days, closely followed by legal roles at 32 days, and maintenance roles at 33 days. These figures suggest a ready supply of qualified candidates for these specific areas or a streamlined hiring process for these established roles.
However, a persistent challenge remains in the form of salary transparency, an issue that continues to draw criticism from job seeker advocates and employment experts. In May, only 41% of UK job advertisements included salary details, remaining unchanged from April and marking a slight decline from 43% a year earlier. This means that a substantial majority—59%—of all vacancies are still advertised without clear pay information. The lack of transparency can hinder job seekers’ ability to make informed decisions, contribute to wage inequality by perpetuating gender and ethnicity pay gaps, and make the job search process less efficient for both candidates and employers. Calls from various advocacy groups and professional bodies for greater salary transparency have yet to yield significant change across the broader market, despite growing evidence of its benefits for equity and efficiency.
The Graduate Crisis: A Deepening Concern
While the overall jobs market shows glimmers of recovery, the outlook for new graduates and entry-level job seekers has darkened considerably, presenting a significant concern for the UK’s future workforce and long-term economic prosperity. Graduate vacancies experienced a sharp decline in May, falling by 9.6% month-on-month and a staggering 42% year-on-year. This precipitous drop reduced the number of graduate roles to just 8,398, marking the steepest annual decline ever recorded by Adzuna.
This contraction in opportunities is compounded by a corresponding dip in graduate salaries, which slipped to £25,773 from £26,126 in April. The combination of fewer opportunities and stagnant or falling starting wages creates an exceptionally challenging environment for those emerging from higher education this summer. The struggles extend to the broader entry-level market, where vacancies softened by 4.2% month-on-month to 209,448, with average salaries remaining broadly flat at £38,959. This suggests a systemic issue impacting young professionals attempting to enter the workforce, rather than an isolated problem for recent graduates alone.
The protracted time to fill graduate roles, which remained the slowest at 41 days, further highlights the disconnect. This suggests that while there may be some graduate vacancies, either employers are struggling to find the right candidates with the required skills, or the roles themselves are less attractive, leading to prolonged recruitment cycles and potential mismatches. This situation poses a significant risk of a ‘lost generation’ entering the workforce under adverse conditions, potentially impacting their long-term career trajectories, contributing to skill erosion, and delaying economic independence. Educational institutions and government bodies are increasingly pressured to address this growing crisis, with discussions centring on curriculum relevance, the expansion of high-quality apprenticeship schemes, and targeted support programmes to bridge the gap between academic output and market demand. Universities are reportedly exploring closer ties with industry and enhancing career services to better prepare students for a challenging landscape.
Expert Commentary and Broader Implications
Andrew Hunter, co-founder of Adzuna, encapsulated the prevailing sentiment, stating: “May’s figures confirm what we’ve been hinting at for months – this is now a genuine, sustained recovery, not a blip. Four consecutive months of vacancy growth has pulled the annual decline in from -16% in January to under -7% today. But let’s not get carried away: that recovery is narrow, driven by a handful of sectors like teaching, trade and construction and domestic help and cleaning, while areas like healthcare, hospitality and logistics are still shrinking fast. And for graduates, the picture is getting worse, not better. The market is healing, but unevenly, and young people entering the workforce this summer are bearing the brunt of it.”
Hunter’s analysis underscores a critical duality: a macro-level improvement in vacancy trends coexisting with micro-level fragilities and inequalities. The sustained recovery, even if narrow, offers a glimmer of hope for overall economic stability following the mid-2025 downturn. This broader economic context, which saw a period of contraction and increased inflation, is slowly giving way to signs of stabilization, with GDP growth tentatively returning to positive territory in recent quarters, alongside a gradual easing of inflationary pressures. The labour market, often a lagging indicator, is now reflecting this cautious optimism.
However, the unevenness of this recovery carries significant implications. The decline in vital sectors like healthcare, hospitality, and logistics, which are major employers and foundational to the economy, raises questions about long-term resilience and public service provision. It could signal structural changes, such as increased automation or shifts in consumer behaviour, but also highlights potential underinvestment or persistent workforce challenges in these areas. The government’s Department for Work and Pensions might point to the overall vacancy growth as a sign of progress, while simultaneously acknowledging the need for targeted support in struggling sectors.
The plight of graduates is perhaps the most pressing concern. A prolonged period of difficulty for new entrants can have lasting societal and economic consequences. It can lead to underemployment, skill erosion, delayed economic independence, and a potential "brain drain" if opportunities are perceived as better abroad. This situation calls for concerted efforts from government, higher education institutions, and industry to bridge the gap between academic output and market demand, perhaps through enhanced career guidance, work placement programmes, more flexible hiring pathways, and even re-evaluating the value proposition of certain degrees in the current economic climate. A spokesperson from the National Union of Students (NUS
