UK corporations maintain off on hiring as job vacancies fall

UK firms are holding again on hiring or are usually not changing departing staff, sending job vacancies tumbling, official figures counsel.

The variety of out there jobs fell by 63,000 between March and Might whereas the unemployment price ticked larger.

“There continues to be a weakening within the labour market,” mentioned Liz McKeown, director of econonic statistics on the Workplace for Nationwide Statistics (ONS), including that there had been a noticeable drop within the variety of folks on payrolls.

In April, Nationwide Insurance coverage Contributions paid by employers elevated whereas an increase within the minimal wage got here into pressure.

The estimated variety of out there jobs fell to 736,000 over the three months to Might.

“Suggestions from our vacancies survey suggests some corporations could also be holding again from recruiting new staff or changing folks after they transfer on,” mentioned Ms McKeown.

The figures additionally confirmed that the unemployement price rose from 4.5% to 4.6% – the best since July 2021.

The rise in common wages slowed to five.2% between February and April, easing from a 5.6% enhance.

Whereas Capital Economics mentioned the UK jobs market was “not collapsing”, its deputy chief UK economist Ruth Gregory mentioned: “Most indicators present labour demand is clearly weakening.”