🇬🇧 UK Jobs Market Weakens as Vacancies Fall to 702,000

UK hiring is losing momentum as employers pull back on recruitment—raising fresh questions about the strength of Britain's economy. Britain's labour market remained under pressure in the latest official figures released today, with job vacancies falling to 702,000 in the three months to August. That was down from 706,000 in the previous period and marked the lowest level since early 2021. The unemployment rate remained at 4.9% in the three months to July, while average weekly earnings excluding bonuses increased by 3.5% year-on-year. Employers are becoming more cautious The Office for National Statistics said small businesses cited higher employment costs as one factor affecting recruitment. Payroll employment also fell, with the number of payrolled employees decreasing by 26,000 in August, according to the latest data reported by Reuters. Private-sector wage growth has slowed further, reaching 2.9%, its weakest pace since late 2020. That could ease concerns about a wage-driven inflation spiral. Bank of England faces a difficult decision The figures arrive just days before the Bank of England's interest-rate decision. A weaker jobs market could support keeping rates unchanged, but the Bank is simultaneously facing renewed inflation pressure from sharply higher energy prices linked to the Middle East conflict. Markets are therefore watching closely for signals about whether another rate increase could come later this year. Young workers remain particularly vulnerable The latest figures also show continued pressure on younger workers. The Trades Union Congress said youth unemployment stood at 14.4%, compared with 11.9% a year earlier. Source: UK Office for National Statistics and Reuters, September 15, 2026.