UK Job Vacancies Hit Five-Year Low Outside Pandemic
Small business hiring slows amid rising labour and operating costs, despite steady unemployment.
Callum Smith
UK job vacancies have fallen to their lowest level since 2014, excluding the Covid period.
Vacancies remain broadly flat, but a recent fall puts them at their lowest level in over five years, Liz McKeown confirmed.
Despite this decline in available positions, the overall unemployment rate holds steady at 4.9%; the Office for National Statistics indicates small firms may not be recruiting due to increased labor and other business expenses.
Liz McKeown further explained that the latest decrease was driven mainly by smaller businesses. These firms cite labor and operating costs as reasons for not hiring new staff or replacing leavers.
The latest decrease was driven mainly by smaller businesses. These firms cite labor and operating costs as reasons for not hiring new staff or replacing leavers.
The number of workers on payrolls reportedly fell by 13,000 between May and June.
Private sector pay growth has reportedly fallen to a six-year low, even as overall regular wage growth rose to 3.5% in the same period; regular wage growth has remained broadly stable in recent months, Liz McKeown noted.
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, she added.
Smaller firms have reported freezing recruitment due to rising operational and labor costs. Many companies attribute the situation to high energy costs and increases in national insurance and the minimum wage.