The key facts
- UK vacancies fell by 21,000 to 691,000 in the three months to September — the lowest in more than five years
- Small companies name rising labour costs as the main reason: national insurance, minimum wage and energy prices
- Unemployment fell from 4.9% to 4.7%, real wage growth was 0.8%
Vacancies fell the most since the start of the year
The number of job vacancies in the UK fell by 21,000 in the three months to September — to 691,000. This is the largest drop since the start of the year and the lowest figure in more than five years, the Office for National Statistics (ONS) reports. The largest decline was in the construction sector.
Small businesses cite rising costs
According to the ONS, the reduction in hiring is concentrated mainly among small companies, which name increased staffing costs as the key factor. Businesses point to higher national insurance contributions and the minimum wage. In addition, energy prices have risen since the start of the war with Iran.
Unemployment fell, wages grow moderately
The unemployment rate in the three months to August fell to 4.7% from the previous 4.9%. Average earnings excluding bonuses rose by 3.7%, and adjusted for inflation real growth was 0.8%.
ONS assessment: the labour market remains almost unchanged
David Freeman, ONS deputy director for labour market statistics, noted that the labour market in 2026 remains broadly unchanged: the employment rate is rising slightly and unemployment has fallen a little. The number of employees on payrolls over the same period declined somewhat, but the data for the latest month, in his words, suggest this may be levelling out.
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