UK JOB VACANCIES HIT FIVE-YEAR LOW

The Office for National Statistics (ONS) said UK job vacancies fell to a five-year low as its unemployment estimate declined in the three months to August. The ONS counted 691,000 vacancies between July and September, the first total below 700,000 since April 2021. It put the unemployment rate at 4.7 per cent, down from 4.9 per cent in the three months to July. That was its lowest estimate since the three months to July 2025. The ONS figures recorded the largest fall in openings in construction.

The ONS reported wage growth of 3.7 per cent and said growth in total pay, including bonuses, reached its lowest rate in almost six years. More recent payroll data suggested an increase of about 13,000 workers between August and September. David Freeman, the ONS deputy director of labour market statistics, said vacancies had seen their largest fall since the start of the year. He said the decline centred on small businesses, which cited increased labour costs.

“The UK labour market is running on idle, with employers still limiting recruitment and pay awards in response to surging cost pressures and pre-Budget policy uncertainty,” said Suren Thiru, ICAEW chief economist. Thiru said the continued fall in vacancies suggested weaker hiring demand alongside higher employment costs. Kevin Fitzgerald, Employment Hero’s UK managing director, said small businesses were holding back expansion plans amid uncertainty about their annual costs. John Healey is preparing to deliver his first Budget as chancellor next week.