Indeed Mid-Year Labour Market Update: UK job Postings are down 11% Since The Start of 2026 and 32% Below Pre-pandemic Levels

• UK job postings are down 11% since the start of 2026 and now stand 32% below their pre-pandemic baseline
• Graduate job postings are at their lowest level for this time of year since the pandemic, while summer job postings are at a four-year low
• AI mentions in UK job postings have reached a record 9.4%, while jobseeker searches for AI roles have risen sevenfold since the launch of ChatGPT
• Posted wage growth has cooled to 3.9% annually, though pay pressures remain elevated in tech, healthcare and engineering
• Salary transparency has partially recovered to 58% of postings, while remote or hybrid postings remain close to peaks at 16.9%

UK hiring demand weakened further during the first half of 2026, according to Indeed’s annual Mid-Year UK Labour Market Update. As of 17 July, job postings were down 11% since the start of the year and stood 32% below their February 2020 baseline.

Yet the update also points to a labour market in transition. AI is now mentioned in a record 9.4% of UK job postings, including in functions such as marketing, finance, HR and management where overall hiring demand is declining.

The decline has been broad-based. Most occupational categories have recorded year-on-year falls, including professional services, hospitality and retail. Only a small number of areas in technology, engineering and healthcare have seen hiring demand grow. 

The slowdown is creating particular pressure for younger workers. Graduate job postings are down around 7% year on year and at their lowest level for this point in the year since 2020, while summer job postings are at a four-year low.

At the same time, the update reveals a labour market in transition. AI is now mentioned in a record 9.4% of UK job postings, with AI-related hiring rising in some functions even as overall recruitment in those areas declines.

Graduate and summer hiring remain subdued

Graduate job postings were down around 7% year on year as of 10 July and stood at their lowest level for this point in the year since 2020.

Summer job postings – covering temporary and seasonal roles in sectors including hospitality, retail, tourism and events – were also at their weakest level in four years.

Together, the findings point to a tightening of two important entry routes into employment. Graduates are competing for fewer early-career roles, while students and school leavers are facing reduced access to the seasonal jobs that often provide their first experience of work.

AI mentions in job postings continue to rise

AI or related tools and programmes were mentioned in 9.4% of UK job postings at the end of June, the highest share on record.

Demand remains strongest in data and analytics and software development, with almost half of data and analytics postings now referencing AI. However, AI requirements are also becoming more common in scientific research, marketing, media and communications.

The divergence is particularly notable in areas including HR, management, marketing and finance, where AI-related postings are growing even as overall hiring demand declines. This points to a two-speed labour market within knowledge work, with weak recruitment volumes but growing employer demand for practical AI capability.

Jobseeker behaviour is shifting too. Searches for AI-related roles have risen sevenfold since the launch of ChatGPT. The most common terms searched alongside AI are “Engineer” and “Trainer”, accounting for 6.4% and 5.6% respectively.

Wage growth continues to cool

Posted wage growth eased to 3.9% annually in the three months to June, its lowest rate since February 2022.

Wage pressures remain stronger in technology, healthcare and engineering, where specialist skills continue to be difficult to find. By contrast, many lower-paid categories that recorded strong wage growth after the pandemic have seen pay pressures cool.

Salary transparency and hybrid work remain important

The share of UK job postings including pay information recovered to 58% in the three months to June, but remains below the 64% high recorded in early 2025.

The share of postings mentioning remote or hybrid working stood at 16.9% at the end of June, close to its peak. Two days a week in the office remains the most common hybrid arrangement.

Jack Kennedy, Senior Economist, Indeed, comments: “The UK’s labour market is under sustained pressure. Hiring demand is falling across most parts of the economy, while posted wage growth is gradually cooling. That is particularly challenging for graduates and younger workers, who are competing for fewer opportunities to gain an initial foothold.

“At the same time, employers are changing what they look for in the people they hire. AI literacy is no longer confined to specialist technology roles – it is spreading into marketing, media, finance, scientific research and beyond. The result is a two-speed labour market, with weak overall hiring but rapidly growing demand for a new set of skills.”