Official data has revealed that job vacancies in the UK have fallen below 700,000 for the first time in over five years, signalling a continued weakening of the labour market. The Office for National Statistics (ONS) reported a decrease of 21,000 vacancies in the three months leading up to September.
The total number of job vacancies now stands at around 691,000, marking the lowest level since April 2021. David Freeman, deputy director of labour market statistics at the ONS, noted that the largest fall in vacancies this year was concentrated mainly within smaller businesses, which cited increased labour costs as a key factor.
The unemployment rate saw a slight drop to 4.7 per cent. Annual growth in employees’ earnings, excluding bonuses, was 3.7 per cent, which was higher than economists’ expectations. Including bonuses, annualised pay growth was also 3.7 per cent between June and August, falling below expectations.
Economists suggest that a weaker jobs market could influence the Bank of England's decisions regarding interest rates. Martin Beck, chief economist at WPI Strategy, described the drop in vacancies as "more worrying," stating that the UK faces a "prolonged jobs squeeze rather than an employment crisis."