UK Job Vacancies Hit Four-Year January Low as Salaries Surge

New data reveals a sharp decline in hiring across industries while advertised wages climb to record levels, intensifying inflation concerns.

The number of UK job vacancies in January 2025 fell to 828,500, the lowest January figure since 2021, reflecting a 4.5% year-on-year decline.
Average advertised salaries reached a record £40,846, a 7% increase from January 2024, driven by competition for talent in sectors like manufacturing, maintenance, and retail.
Rising wages are fueling concerns at the Bank of England about sustained inflation, with forecasts suggesting inflation could hit 3.75% later this year, well above the 2% target.
Hospitality and retail sectors face significant challenges due to increased National Insurance contributions and minimum wage hikes, with 70% of surveyed hospitality businesses planning job cuts.
Trade groups and businesses are urging the government to delay tax changes, warning of potential closures, reduced trading hours, and canceled investments.