UK unemployment rate stays unchanged at 4.9%

It comes as job vacancies have fallen back further as under-pressure small businesses rein in hiring in the face of rising costs and higher wage bills, according to official figures.

The Office for National Statistics (ONS) said wage growth in the private sector also fell below 3% for the first time since 2020.

The latest figures showed there were 7,000 fewer vacancies in the three months to June at 712,000, which follows a 19,000 drop in the previous three months.

This was driven by smaller businesses, which saw vacancies fall 8,000, though this was partially offset by an increase in medium sized firms, the ONS said.

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Liz McKeown, ONS director of economic statistics, said: “The latest data show a relatively steady labour market picture overall, though some measures continue to suggest softening.”

She added: “Vacancies fell again over the quarter, but by less than in recent periods.

“The latest decrease was driven mainly by smaller businesses, where labour and operating costs were cited as factors in not taking on new staff.”

A Government spokesperson said: “The reality is too many young people are still locked out of work.

“For too long, governments have paid for failure rather than invested in people’s success.

“We’re determined to turn that around by creating real opportunities for young people, reforming education so everyone has a clear path to a good job and providing the support people need to stay and get on in work.”