Vacancies drop to fresh five-year low as small firms remain under pressure

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JOB vacancies have fallen to a fresh five-year low as small firms hold back from hiring amid soaring wage costs, official figures revealed today.

The Office for National Statistics said there were around 8,000 fewer vacancies quarter on quarter in the three months to August, at 702,000, the lowest since spring 2021.

Regular average weekly earnings growth remained unchanged at 3.5 per cent, while total wage growth stood at 3.9 per cent, down from 4.2 per cent.

This puts pensioners on course for a 3.9 per cent uplift in the state pension next year, according to experts.

The unemployment rate remained unchanged at 4.9 per cent, but workers on payrolls slumped by 26,000 during August, the largest decline since November last year.

Youth unemployment remains high at 14.4 per cent, while redundancies rose by 1,500 to 114,000.

Work and Pensions Secretary Pat McFadden said the figures “show a labour market that remains resilient in the face of significant global economic pressures.”

“But we know there is more work to do, particularly to ensure young people gain the skills, experience and confidence needed to succeed,” he added.

TUC general secretary Paul Nowak said: “The labour market picture remains finely balanced. Jobs and pay remain under pressure.

“Supporting more young people into work must remain a key priority.

“The government needs to expand the Jobs Guarantee to ensure more young people gain important experience of paid work.

“It is time to release the handbrake on public investment and continue breaking the UK’s cycle of economic stagnation.”

The figures come ahead of the Bank of England’s interest rate decision tomorrow, with policymakers expected to hold at 3.75 per cent.