Number of vacancies fall to lowest level in five years as bosses pull back on hiring
Vacancies tumbled by 19,000 quarter-on-quarter to 707,000 in the three months to May,
UK vacancies have fallen to their lowest level in more than five years as businesses continue to exercise caution over their hiring.
Listen to this article
The Office for National Statistics (ONS) said job openings tumbled by 19,000 to 707,000 in the three months to May, which is the lowest since the three months to April 2021.
The ONS said the drop in vacancies was significant across lower‑paying sectors and smaller employers, while the largest fall in the quarter was in professional services.
The latest figures show Britain’s rate of unemployment edged lower to 4.9% in the three months to April, down from 5% in the three months to March.
Read more: LIVE: Voters head to polls in Makerfield as crunch by-election begins
Wage growth meanwhile remained unchanged at 3.4% in the three months to April after recently easing back and continues to outstrip inflation rising by 0.3% after taking Consumer Prices Index inflation into account.
The data comes before the Bank of England’s interest rate decision at noon on Thursday, with policymakers widely expected to vote for a hold.
Liz McKeown, ONS director of economic statistics, said: "The labour market remained broadly stable in the latest quarter, with further softening evident in some measures.
"Payroll numbers continued to fall over this period, with new recruits at their lowest level in five years."
She added there was "some signs of workers moving into self‑employment",while the vacancies decline signalled firms are "becoming more cautious about taking on new staff".
In reespone to the figures, Work and Pensions Secretary Pat McFadden said: "This month’s figures show that there are 400,000 more people in work than this time last year, but we know ongoing instability in the Middle East is causing uncertainty in our labour market.
"We have the right economic plan for growth and stability in a volatile world and we are taking action to create opportunity and make sure that no one is left behind."