Indeed data shows summer vacancies at four-year low even as demand for AI skills reaches record high
LONDON UK job postings declined 11 percent during the first half of 2026 and remained around 32 percent below pre-pandemic levels, according to data from Indeed, even as demand for artificial intelligence skills reached a record high across UK job advertisements.
What The Data Actually Shows About Graduate And Summer Employment Specifically
Graduate vacancies fell to their lowest level for this stage of the year since 2020, while summer job vacancies reached a four-year low, according to the Indeed figures, pointing to particular strain for younger workers and students seeking entry-level or seasonal employment this year.
What Is Actually Driving The Growing Divide Within The Labour Market
The data points towards an increasingly divided labour market, with vacancies in software development, engineering, and IT holding up considerably better than other sectors, particularly for experienced candidates possessing specialist AI skills, while opportunities elsewhere have fallen sharply.
How Prominently AI Skills Now Feature In UK Job Advertisements
AI-related tools were mentioned in 9.4 percent of UK job advertisements, according to the Indeed data, a record high that reflects the technology’s rapidly growing presence within employer hiring criteria across a widening range of roles beyond specialist technical positions.
What This Means For Wage Growth Across The Broader Labour Market
Advertised wage growth slowed to 3.9 percent, its weakest rate since early 2022, according to the same data set, suggesting that softening overall labour demand is beginning to translate into reduced employer willingness to offer competitive pay increases to attract candidates.
How This Fits Into The Broader UK Economic Picture This Year
The vacancy decline arrives amid separate reporting describing the UK as being in its longest jobs slump since the financial crisis, according to PMI survey data, reinforcing a broader picture of labour market weakness extending well beyond the graduate and summer employment segments specifically highlighted in the Indeed figures.
What Economists Expect For The Remainder Of The Year
Economists have generally attributed the softening job market to a combination of geopolitical tensions, higher fuel costs, and continued political uncertainty, factors that have made businesses more reluctant to commit to investment and expansion through the remainder of 2026. Further UK economic coverage continues at bohiney.com.
SOURCE: https://bohiney.com