UK job vacancies fall to five-year low as wage growth slows
New figures show UK job vacancies at a five-year low while wage growth remains modest, indicating a cooling labour market.
The Full Story
A plain summary built from the channels that reported this story.
New official figures show the UK labour market is cooling, with job vacancies falling to their lowest level in more than five years and wage growth slowing, particularly in the private sector. The number of vacancies dropped by 6,000 between May and July this year to 707,000, while unemployment held steady at 4.9%. Early estimates also suggest there could be 94,000 fewer employees on the payroll compared with the same time last year.
Employers are feeling the pressure. A foundry owner in Chesterfield said energy costs and government levies were a major burden, with levies accounting for about 70% of his energy bill. He also cited geopolitical tensions, such as the war in the Middle East and sanctions on Russia, as factors pushing up costs and making it harder to grow and create jobs.
Job seekers are also struggling. Sasha, a fashion designer with a degree, was out of work for nearly a year and applied for more than 100 jobs before finding success. She described the experience as a "whirlwind", saying Universal Credit was not enough to live on and that the job market was "so diluted" with thousands of applicants for each role.
The government says it has put in place measures to help people find work, including a grant to encourage firms to hire young people. There are some encouraging signs in the figures, with average pay just about outpacing inflation. However, an analyst noted that the picture is "not getting any worse for people looking for a job but it also isn't looking any better". He added that strong economic growth figures from the early summer have yet to translate into job creation and wage growth, though that could still happen later in the year.
For now, both job seekers and employers may need to cast the net wider as the labour market continues to adjust to higher costs and a slower pace of hiring.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | Channel 4 |
|---|---|
| Early estimates suggested 94,000 fewer employees on the payroll than in the same period last year. | |
| Job vacancies fell by 6,000 to 707,000, the lowest level in more than five years. | |
| Unemployment remained unchanged at 4.9%. |
Channel Perspectives
What each channel focused on, with key quotes.
Channel 4 focuses on the human impact of the cooling labour market, using interviews with an employer and a job seeker to illustrate the statistics. It highlights the causes cited by businesses, such as energy costs and government levies, and includes cautious analysis about the future. The tone is sympathetic to both sides, with a clear narrative about the struggles of finding work and hiring.
- “Our energy costs are only about 30% of what we pay. That's 70% is actually government levies.”
- “I must apply for over 100 jobs.”
- “The picture isn't getting any worse for people looking for a job but it also isn't looking any better.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.