Number of job vacancies hits five year-low

The number of job vacancies has fallen to its lowest level for five years as businesses cut back on recruitment, according to the latest official figures.

The Office for National Statistics (ONS) said that while the labour market remained "broadly stable", some areas showed signs of weakening.

The number of job vacancies in the March to May period fell to 707,000, the ONS said, the lowest level since February to April 2021.

Liz McKeown, the ONS's director of economic statistics, said the further drop in job vacancies suggested that "firms are becoming more cautious about taking on new staff".

The professional services sector saw the largest fall in vacancies, but retail and hospitality also saw significant drops.

Data from HMRC shows that the number of new recruits was at a five-year low, with the number of 'inflows', or new hires, just under 540,000 in April - the lowest monthly figure since March 2021.

McKeown said that there were "some signs of workers moving into self employment" against a backdrop of falling vacancies.

The unemployment rate fell slightly to 4.9% in the three months to April, from 5% in the three months to March.

Regular pay — which excludes bonuses — grew at an annual rate of 3.4% in the three months to April. That was unchanged from the three months to March and means that average earnings are still rising slightly faster than prices.

However, McKeown said regular wage growth in the private sector was rising at its lowest rate in five and a half years.

He said many pubs and restaurants were now only hiring people with several years' experience, "rather than trying to support a younger generation and get them into their first job".

Cutting VAT, a measure called for by hospitality groups, would help ease the pressure and "give us the opportunity to train young people", he added.