It's the worst job market I've seen in the UK since 2008. A huge number of companies made significant redundancies and the market is saturated with extremely talented people so there's not only more competition for decent opportunities, the bar is also much higher.
As for hybrid working, that will be the norm for at least the next few years so if you want a realistic shot at landing a decent job, you'll need to compromise on your expectations here quite heavily.
There are some signs that the market is improving but expect it to take a minimum of 12-18 months before it returns to any semblance of normality.