Data: UK job vacancies have dropped to the lowest level in five years

(London Bloomberg News) The number of job vacancies in the UK has dropped to its lowest level in five years, and graduate positions have also reached an all-time low.

Increased concerns in the labor market have led to weak recruitment activities in January. According to data from the online job search website Adzuna, the number of job vacancies posted by employers was 694,940, a 3.05% decrease compared to the previous month, continuing the downward trend since last year and marking the worst performance since January 2021.

The number of graduate job positions has plummeted by 19.1%, falling below the 10,000 mark and reaching a new low since Adzuna began tracking this indicator in April 2016.

Adzuna's co-founder Hunt said, "The market still faces challenges. There are fewer job vacancies and the competition is fierce, but the sustained salary growth indicates that employers are still willing to pay the appropriate compensation for the right skills."

According to the relevant data, the average annual salary in January reached £43,289 (approximately S$79,000), up by 5.98% year-on-year, which is higher than the 3.25% non-inflationary stable salary growth expected by the Bank of England.

These figures have exacerbated concerns about the rapid weakening of the UK's labor market, with young people being the most affected.

The Labour government's plans to raise the minimum wage, increase payroll taxes, and enhance employee rights protection are regarded as a contributing factor to the decline in employment.

Furthermore, it seems that artificial intelligence (AI) is taking over entry-level positions, with such positions dropping by 4.46% in January.

Economists are hoping that artificial intelligence and stronger business investment will drive the sluggish productivity recovery in the UK. This indicator measures the level of per capita output and is crucial for improving living standards.