JOB VACANCIES FALL AS SMALL BUSINESSES CUT HIRING

Job vacancies in Britain fell by 7,000 in the three months to June, reaching 712,000 according to official figures from the Office for National Statistics. The decline follows a 19,000 drop in the previous quarter. Small businesses drove the latest decrease, reporting 8,000 fewer vacancies, though this was partially offset by increases in medium-sized firms. The ONS attributed the contraction to rising labour and operating costs.

Private sector wage growth fell below 3% for the first time since 2020, the ONS reported. Overall regular wage growth remained unchanged at 3.4% in the quarter to May, with earnings outpacing inflation by 0.4% when measured against the Consumer Prices Index. Britain's unemployment rate held steady at 4.9% in the three months to May. Liz McKeown, ONS director of economic statistics, described the labour market as "relatively steady overall", noting that vacancy falls had slowed compared to previous periods.

The figures suggest a labour market adjusting to sustained cost pressures whilst avoiding sharp rises in joblessness. The ONS data indicate that whilst hiring has contracted, the overall employment position has remained stable, with wage growth in real terms continuing to exceed inflation. The next quarterly update on labour market conditions is expected in due course.