Market
Published Jun 18, 2026Updated Jun 191
69%
UK job vacancies hit five-year low as employers turn cautious
UK job vacancies fell to 707,000 in March-May 2026, the lowest in five years, while new hires dropped to under 540,000 in April. Unemployment dipped to 4.9%, but private-sector wage growth slowed, and employers expressed caution about hiring, particularly young people, amid rising costs and economic uncertainty.
Quick Facts
- job vacancies hit five-year low
- new hires fall to five-year low
- unemployment rate falls slightly
- regular pay growth unchanged
- private sector wage growth at lowest rate in five and a half years
The number of job vacancies in the UK has fallen to its lowest level in five years, as businesses scale back recruitment amid economic uncertainty, according to official data published by the Office for National Statistics (ONS).
Vacancies in the March to May period stood at 707,000, the lowest since February to April 2021. The ONS described the labour market as "broadly stable" but noted signs of weakening. Professional services recorded the largest decline in vacancies, followed by retail and hospitality.
Liz McKeown, the ONS's director of economic statistics, said the further drop in vacancies suggested that "firms are becoming more cautious about taking on new staff." She also pointed to "some signs of workers moving into self employment" against a backdrop of falling vacancies.
Data from HM Revenue & Customs shows the number of new hires — known as 'inflows' — fell to just under 540,000 in April, the lowest monthly figure since March 2021. The unemployment rate edged down to 4.9% in the three months to April, from 5% in the previous three-month period.
Regular pay (excluding bonuses) grew at an annual rate of 3.4% in the three months to April, unchanged from the previous period, meaning average earnings are still rising slightly faster than prices. However, McKeown noted that private-sector regular wage growth was running at its lowest rate in five and a half years.
Business owners on the ground described the pressures. Jamie Younger, who recently opened The Victory pub in south London, said rises to the minimum wage and national insurance contributions had "made life very difficult." He said many pubs and restaurants are now only hiring experienced staff instead of supporting young people entering the workforce. "With the financial restrictions it's becoming harder and harder every day," he added.
Shazia Ejaz, director of campaigns at the Recruitment and Employment Confederation (REC), said: "Global pressures and domestic political uncertainty are making employers hesitant to commit to hiring, although latest REC data shows temp hiring is faring better than permanent."
The jobs data comes ahead of the Bank of England's interest rate decision later today, with analysts widely expecting the Bank to hold its key rate at 3.75%.
Why This Matters
For job seekers, employers, and policymakers, this signals a cooling UK labour market. Private-sector wage growth at a 5.5-year low and falling vacancies mean fewer opportunities and slower pay rises. Businesses face higher costs from minimum wage and NI increases, leading to cautious hiring. The Bank of England is expected to hold rates, affecting borrowing costs and economic growth. Monitoring these trends helps in planning hiring, wage negotiations, and investment decisions.
Timeline & Sources
Jun 18, 2026
WireONS publishes labour market data; Bank of England interest rate decision expected