UK Job Vacancies Fall to 702,000 as Wage Costs Curb Small-Firm Hiring

3 articles · Updated · Yahoo Finance UK · Sep 15

UK vacancies fell by 8,000 from the prior quarter to 702,000 in the three months to August, the lowest level since spring 2021 and the weakest outside the pandemic period in more than a decade.
ONS said smaller businesses are pulling back on recruitment as rising wage bills squeeze hiring decisions, even as regular pay growth held at 3.5% in the three months to July and still beat inflation by 0.8%.
Payroll employment dropped by 26,000 in August to 30.2 million after a 19,000 fall in July, with declines over the past year especially visible in retail and hospitality, while unemployment stayed at 4.9%.
The figures land before the Bank of England's Thursday decision, where rates are expected to stay at 3.75%, though some economists now see a possible hike as early as November if the labour market steadies and inflation nears 4%.
Total wage growth slowed to 3.9% from 4.2%, a rate that would put state pensions on course for a 3.9% increase next year under the triple lock.