Indeed data points to weaker hiring, slower advertised wage growth and tougher conditions for graduates, even as demand for AI-related skills reaches a record share of listings.
UK hiring activity slowed sharply in the first half of 2026, with job postings on Indeed dropping 11% between the start of the year and July 17 and sitting 32% below pre-pandemic levels. The pullback was particularly pronounced for younger workers: graduate-targeted listings were down 7% year-on-year as of July 10, the weakest level for this point in the year since 2020, while summer seasonal roles fell to a four-year low. Advertised wage growth also cooled, rising 3.9% year-on-year in the three months through June, the slowest pace since February 2022. At the same time, demand for AI-related skills continued to grow, with such roles making up a record 9.4% of all postings at the end of June. Jack Kennedy, senior economist at Indeed, said Britain's labor market remains under pressure and that the outlook is especially difficult for new graduates and younger workers. The figures add to concern over youth unemployment, with more than 1 million people aged 16–24 classified as NEET (not in education, employment, or training) in official statistics. Prime Minister Andy Burnham, who took office just last week, has responded with a reform plan aimed at aligning vocational education and skills training with local labor demand, as the market shows signs of a broader structural shift.