BBC Business2 hours agoLabor1 min readUnited Kingdom

Job vacancies fall as small firms cut back on recruitment

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UK job vacancies dropped by 21,000 to 691,000 in the three months to September, the largest decline since the start of the year, as small businesses cite rising labour costs.
The unemployment rate fell to 4.7% in the three months to August, down from 4.9%.

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Why It Matters

Job vacancies in the UK have declined as small businesses reduce recruitment due to rising labour costs, including increases in National Insurance and the minimum wage, alongside higher energy costs linked to the Iran war.

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Job vacancies in the UK have seen their largest fall since the start of the year as smaller businesses cut back on recruitment, official figures indicate.

Vacancies fell by 21,000 in the three months to September to 691,000, according to the Office for National Statistics (ONS), which said small firms were citing labour costs as a key factor in scaling back hiring.

Energy costs have risen since the Iran war began, and companies have also said that increases in National Insurance and the minimum wage have made it more expensive to employ staff.

The ONS figures also showed the unemployment rate fell to 4.7% in the three months to August, down from the previous figure of 4.9%.

Open Questions

How long will the decline in job vacancies continue?
Which sectors are most affected by the hiring slowdown?
What specific measures are small businesses taking to cope with increased labour costs?