Competition for jobs in the UK has reached its highest level in three years, with more than two jobseekers per vacancy, according to new research from jobs site Adzuna. The report reveals a 0.5% drop in advertised vacancies, with 857,000 roles available in August, down from July. This indicates a potential stagnation in the UK jobs market.

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The decline in job listings has coincided with a rise in redundancies and ongoing long-term sickness, further exacerbating competition for available roles. Adzuna’s data shows that the average advertised salary rose slightly to £38,800, reflecting a 3% increase year-on-year, but wage growth is not keeping pace with inflation, leaving real wages under pressure.

Another indicator of a cautious hiring environment is the average time it takes for job adverts to be filled, which has increased to 35 days. This suggests that employers may be more selective, slowing down their recruitment processes while waiting for clearer economic signals. Andrew Hunter, co-founder of Adzuna, noted that although job vacancies increased in July, this momentum was lost in August as redundancies rose, long-term sickness continued to impact the workforce, and jobseeker numbers surged. He also observed that employers are focusing on specific roles and waiting for potential economic improvement before committing to broader hiring plans.

Despite the stagnation, there are some positive trends in the labour market. Hunter highlighted that graduate roles have been on the rise for four consecutive months, which could signal future growth in vacancies if this trend continues.

Tony Wilson, director at the Institute for Employment Studies, commented on the findings, expressing some disappointment for those hoping to see stronger job market recovery over the summer. However, he acknowledged that vacancies seem to have stabilised at around 850,000, and competition for roles is returning to pre-pandemic levels. Wilson added ‘All of this should give the Bank of England a bit more confidence on future interest rate cuts.’

The overall picture suggests a cautious and selective hiring market, with employers holding off on significant recruitment until there is more clarity on the economic outlook.