UK job vacancies slip to recent low in latest worrying sign for economy

Vacancies in the UK jobs market have fallen to the lowest level since 2014, other than during Covid, with 6,000 fewer openings between May and July compared to the three months to April.

While the overall unemployment picture remains steady at 4.9 per cent, private sector pay growth has also fallen to a six-year low as the British economy struggles to escape concerns over the increase in cost of labour.

The Office for National Statistics (ONS) said its early estimates brings the level of job vacancies down to the lowest in more than five years, having slumped earlier in the year.

The ONS said its survey found that small firms may not be recruiting because of increased labour costs and other business expenses.

The data also revealed that regular average wage growth in the UK’s private sector fell to 2.8% in the three months to June – the lowest level since the three months to October 2020.

This is despite overall regular wage growth rising to 3.5% in the same period, from 3.4% in the three months to April.

ONS director of economic statistics Liz McKeown said: “Vacancies remain broadly flat, though a small fall in the latest period puts them at the lowest level in more than five years.

“The latest decrease was driven mainly by smaller businesses, which cite labour and operating costs as reasons for not hiring new staff or replacing leavers.

“Regular wage growth has remained broadly stable in recent months.

“However, private sector pay growth has continued to ease, while public sector pay growth remains elevated due to the timing of the latest NHS pay awards.”

This story is being updated, more to follow…

Additional reporting by PA