UK corporations maintain off on hiring as job vacancies fall | EUROtoday

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

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

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

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

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

“Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move 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.

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