Job vacancies at five-year low as smaller firms scale back recruitment
Small firms cite labour and operating costs as reasons for scaling back hiring, the UK's statistics body says.
Official data reveals job vacancies at a five-year low, with smaller firms reducing recruitment. The Office for National Statistics (ONS) reported 707,000 vacancies in the May-to-July period, citing labor and operating costs as reasons for the decline. Unemployment remains steady at 4.9%, while regular earnings growth slightly increased to 3.5% annually.
However, Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, warns that the low vacancy numbers signal shrinking labor demand. Greater automation and escalating costs are also impacting entry-level roles. Yael Selfin, KPMG's chief economist, notes that pay growth is primarily driven by public sector wages, while private sector growth slowed to 2.8%.
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