Job seekers in the UK are encountering the toughest competition in three years due to a decline in job vacancies and a minor uptick in unemployment rates, recent data indicates.

According to job search platform Adzuna, there were 850,000 available positions in the UK labor market at the end of August, representing a 0.5 percent drop from July. This statistic translates to 2.09 job applicants for every available position, marking a three-year high.

Andrew Hunter, co-founder of Adzuna, mentioned that this trend reflects stagnation in the job market.

“The stasis in the market, with vacancies remaining stable, indicates that companies are selectively hiring and may be waiting to assess economic conditions as autumn approaches before pursuing growth opportunities,” Hunter stated.

The average time that job postings remain open on Adzuna is now 35.8 days, suggesting a more cautious approach from companies regarding job offers. Among sectors, legal job postings tend to close the quickest at 31.2 days, followed by education at 32.3 days, and property at 32.2 days. In contrast, the energy, oil, and gas sectors take the longest, with an average closing time of 45 days.

Notable declines in advertised vacancies were recorded in the travel sector, which saw an 11 percent decrease in August, alongside sales and accounting, both experiencing a 6 percent drop.

In a positive note, Hunter highlighted a 2.3 percent increase in graduate vacancies, marking the fourth consecutive month of growth, which may lead to future vacancy increases.

Tony Wilson, director at the Institute for Employment Studies, described the data as disappointing for job seekers but noted that vacancies seem to be stabilizing around 850,000.

“Competition for jobs is returning to more typical levels, and employers are filling their positions relatively quickly,” Wilson remarked. “This data should provide the Bank of England with greater confidence regarding potential interest rate cuts in the future.”