Vacancies in the UK jobs market have fallen back again while wage growth in the private sector has hit a six-year low, new figures show.
Vacancies dip to lowest in five years
The Office for National Statistics (ONS) said its early estimates show there were around 6,000 fewer vacancies between May and July, compared with February to April. This brings the level down to the lowest in more than five years, having slumped earlier in the year.
The ONS said its survey found that small firms may not be recruiting because of increased labour costs and other business expenses.
Private sector pay growth slows
The data also revealed that regular average wage growth in the UK's private sector fell to 2.8% in the three months to June – the lowest level since the three months to October 2020. This is despite overall regular wage growth rising to 3.5% in the same period, from 3.4% in the three months to April.
ONS director of economic statistics Liz McKeown said: “Vacancies remain broadly flat, though a small fall in the latest period puts them at the lowest level in more than five years.”
She added: “The latest decrease was driven mainly by smaller businesses, which cite labour and operating costs as reasons for not hiring new staff or replacing leavers.”
Wage growth stable overall
McKeown noted that regular wage growth has remained broadly stable in recent months. However, private sector pay growth has continued to ease, while public sector pay growth remains elevated due to the timing of the latest NHS pay awards.
