The UK's unemployment rate dropped to 4.7% in the period from June to August, according to the latest data from the Office for National Statistics (ONS). This figure is lower than the 4.9% recorded a month earlier and surpassed City economists' expectations, who had predicted a rise to 5%.
Employment increased by 102,000 jobs in the last quarter, bringing the total to 34.577 million. The number of unemployed individuals also fell by 47,000 to 1.712 million, with a slight decrease of 16,000 in those economically inactive, now at 9.091 million.
Despite these improvements, the number of job vacancies experienced its most significant quarterly decline since the beginning of the year, falling by 21,000. This reduction brought the total number of vacancies down to 691,000 in July to September, marking the first time the figure has been below 700,000 since February to April 2021. The ONS attributes this decline mainly to smaller firms, which suggest they may not be recruiting due to increased labour costs, including higher employer National Insurance Contributions and the rise in the minimum wage.