Job openings have plunged by a fifth over the past year, signalling a rapidly cooling labour market that will boost hopes of interest rate cuts.
Jobseekers now face far less choice than in recent years following a sharp reversal of the post-pandemic boom in openings, data from Indeed shows.
The number of available roles on the online jobs platform has even dipped below its pre-Covid level for the first time since the end of lockdowns in spring 2021.
However, the weakening job market may be welcomed by weary mortgage holders.
The figures mark a significant turning point that could assuage fears among the Bank of England’s rate-setters that a tight labour market is fuelling persistent inflation.
Traders currently place a two in three chance that Threadneedle Street will embark on the first reduction in August to bring rates down from a 16-year-high of 5.25pc.
Jack Kennedy, economist at Indeed, said the UK’s slowdown in hiring has been far more pronounced than in other similar countries.
Mr Kennedy said: “The UK does stand out as the only large economy where postings are actually below pre-pandemic. There is a bit of employer caution. It will be interesting to see after the election whether that changes.”
Job postings in the UK dropped below the pre-Covid level for the first time in late May and are now 1pc lower.
Among the six large European or North American countries Indeed tracks, the UK is the only one where advertised roles have slipped below pre-pandemic levels.
In France, openings are still 43pc higher, while in Germany and the US the figures are 39pc and 12pc higher respectively. In Ireland, they remain 18pc higher and in Canada 1pc.
However, Mr Kennedy noted: “We do see pockets, particularly in low-paid sectors, where hiring remains somewhat challenging.”
Job adverts have plunged by 71pc from their peak in March 2022.
