UK Labour Market — The Real Numbers
ONS proves the labour market is weakening. KPMG/REC proves recruiter demand is contracting. Adzuna proves graduate vacancies are crushed. Named companies prove AI is appearing in redundancy narratives.
ONS Vacancies — The Collapse
Office for National Statistics official vacancy count. Data from the ONS time series API (series AP2Y).
Latest Vacancies (ONS)
707,000
April 2026
Peak (Mar–May 2022)
~1,275,000
Post-pandemic high
Fall from Peak
−568,000
To April 2026
Context
Lowest
Outside pandemic since Nov 2014–Jan 2015
Vacancies by Industry — Latest ONS VACS02
Period: Mar-May 2026
| Industry | Vacancies (thousands) |
|---|---|
| All vacancies1 | 707.0k |
| Total services | 614.0k |
| Human health & social work activities | 124.0k |
| Wholesale & retail trade; repair of motor vehicles and motor cycles | 86.0k |
| Accommodation & food service activities | 69.0k |
| Professional scientific & technical activities | 67.0k |
| Administra-tive & support service activities | 52.0k |
| Manu- facturing | 50.0k |
| Education | 48.0k |
| Retail | 46.0k |
| Information & communication | 40.0k |
| Construc-tion | 33.0k |
| Transport & storage | 33.0k |
| Financial & insurance activities | 32.0k |
| Public admin & defence; compulsory social security | 28.0k |
| Wholesale | 25.0k |
| Motor Trades | 15.0k |
| Other service activities | 14.0k |
| Arts, entertainment & recreation | 12.0k |
| Real estate activities2 | 10.0k |
Source: ONS VACS02
KPMG/REC Report on Jobs — Recruiter Sentiment
Monthly PMI-style survey of UK recruitment agencies. Below 50 = contraction. Published by REC with KPMG. Source →
Permanent Placements
N/A
—
Temp Billings
N/A
—
Staff Availability
N/A
Above 50 = more candidates available (labour market slack)
Latest Report — July 2026
"Heightened uncertainty around the business outlook – linked to the war in Iran and UK political turbulence – led to the quickest fall in permanent staff recruitment for ten months in May, according to the latest KPMG and REC, UK Report on Jobs data."
Adzuna — Graduate & Entry-Level Vacancies
Adzuna aggregates millions of live job postings. Graduate and entry-level vacancy trends show what the market actually looks like for new entrants. Source →
Graduate Vacancies
10,667
2026-03
Graduate Jobs YoY Change
-34.9%
Year-on-year
What This Means for New Graduates
Graduate vacancies fell by 34.9% year-on-year to March 2026, leaving just 10,667 graduate-level
openings nationally. This is the market that politicians describe as "full employment."
The class of 2026 is entering the weakest graduate job market in over a decade — before AI adoption
accelerates displacement further. Entry-level roles are also under pressure from automation tools
that allow small teams to do what previously required larger graduate cohorts.
UK AI Redundancy Tracker
Named UK companies citing AI in redundancy announcements. Classification: AI_direct = AI explicitly named as cause; AI_adjacent = AI cited alongside broader cost-cutting; cost_cutting_with_AI_cover = cost-cutting using AI as framing.
Companies Tracked
11
Confirmed Roles Cut
73,950+
Where figures disclosed
AI-Direct Classifications
5
| Company | Sector | Date | Roles Cut | Classification | Notes |
|---|---|---|---|---|---|
| Lloyds Banking Group | Banking & Finance | 2024-11 | 1,600 | AI_adjacent | 1,600 roles cut in back-office and branch operations as part of digital/AI transformation strategy. |
| Bryan Cave Leighton Paisner (BCLP) | Legal Services | 2024-11 | undisclosed | AI_direct | Business services and paralegal roles reduced as AI contract tools deployed. |
| Freshfields Bruckhaus Deringer | Legal Services | 2024-10 | undisclosed | AI_direct | Support staff roles restructured as firm deploys Harvey AI across practice areas. |
| Clifford Chance | Legal Services | 2024-09 | undisclosed | AI_direct | London business-services roles reduced citing AI document review and contract analysis tools. FT-reported. |
| Sky (Comcast/NBCUniversal) | Media & Technology | 2024-06 | 1,000 | AI_adjacent | ~1,000 UK roles in content and operations; Sky cited AI investment and digital transformation. |
| Sky UK (Comcast/NBCUniversal) | Media & Technology | 2024-06 | 1,000 | AI_adjacent | ~1,000 UK roles in content and operations. Sky cited AI investment and digital transformation. |
| Reach plc | Media & Publishing | 2024-03 | 450 | AI_adjacent | 450 editorial and production roles; management cited AI content tools and digital transformation. |
| HSBC | Banking & Finance | 2024-01 | undisclosed | AI_adjacent | AI transformation programme; headcount reduction ongoing as part of automation push. Exact figures not disclosed. |
| IBM UK | Technology | 2023-07 | 3,900 | AI_direct | Global cuts; UK share of 3,900 back-office roles paused/eliminated citing AI replacement. CEO Arvind Krishna confirmed. |
| BT Group | Telecommunications | 2023-05 | 55,000 | AI_direct | 55,000 cuts by 2030; BT CEO cited AI replacing roles in customer service and infrastructure. ~10,000 AI-enabled reductions. |
| Vodafone UK | Telecommunications | 2023-05 | 11,000 | AI_adjacent | 11,000 global cuts over 3 years; UK impact significant. CEO cited AI and efficiency. Classification: cost-cutting with AI cover. |
Sources: FT, Guardian, Reuters, BBC, Legal Week. Updated periodically. Reuters AI coverage →
Connecting the Dots
The structural picture, assembled from real data:
1. ONS proves the labour market is weakening. 707,000 vacancies (April 2026) — the lowest outside the pandemic since late 2014. A fall of 568,000 from the 2022 peak. This isn't a blip; it's 3 years of sustained contraction.
2. KPMG/REC proves recruiter demand is contracting. 30 successive months of Permanent Staff Placements below 50 — meaning recruitment agencies have been reporting fewer placements every single month since late 2023. Staff availability is rising, meaning more candidates chasing fewer roles.
3. Adzuna proves graduate vacancies are crushed. Down 34.9% year-on-year to March 2026 — just 10,667 graduate-level openings nationally. The entry point for a generation is narrowing just as AI tools eliminate the junior-level work that used to be their stepping stone.
4. Named companies prove AI is appearing in redundancy narratives. BT (55,000 by 2030), legal firms, media companies, banks — AI is being cited explicitly or as cover for headcount reductions across sectors that historically absorbed graduate and early-career workers.
The combination is a labour market that politicians describe in the language of 2021 while workers navigate the reality of 2026.
1. ONS proves the labour market is weakening. 707,000 vacancies (April 2026) — the lowest outside the pandemic since late 2014. A fall of 568,000 from the 2022 peak. This isn't a blip; it's 3 years of sustained contraction.
2. KPMG/REC proves recruiter demand is contracting. 30 successive months of Permanent Staff Placements below 50 — meaning recruitment agencies have been reporting fewer placements every single month since late 2023. Staff availability is rising, meaning more candidates chasing fewer roles.
3. Adzuna proves graduate vacancies are crushed. Down 34.9% year-on-year to March 2026 — just 10,667 graduate-level openings nationally. The entry point for a generation is narrowing just as AI tools eliminate the junior-level work that used to be their stepping stone.
4. Named companies prove AI is appearing in redundancy narratives. BT (55,000 by 2030), legal firms, media companies, banks — AI is being cited explicitly or as cover for headcount reductions across sectors that historically absorbed graduate and early-career workers.
The combination is a labour market that politicians describe in the language of 2021 while workers navigate the reality of 2026.
Data Sources
ONS: VACS02, AP2Y time series | REC: Report on Jobs | Adzuna: Job Market Report | Company data: FT, Guardian, Reuters, BBC
Data refreshed daily (ONS monthly, REC monthly, Adzuna weekly).
📊 What This Means