Job vacancies at five-year low as smaller firms scale back recruitment
UK job vacancies have hit a five-year low as small businesses reduce hiring due to rising labor and energy costs. While unemployment remains stable at 4.9%, private sector wage growth has slowed significantly.
Why it matters
The data signals a cooling labor market and economic strain on small businesses, which are key indicators for the broader UK economic outlook.
Image source, Getty Images Published 18 August 2026, 07:25 BST Updated 5 hours ago The number of job vacancies has fallen to its lowest level in more than five years as smaller businesses cut back on recruitment, official figures indicate.
Vacancy numbers fell over the May-to-July period to 707,000, according to the Office for National Statistics (ONS), which said small firms were citing labour and operating costs as reasons for 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.
Earnings growth picked up slightly, although private sector wages grew at their slowest rate for nearly six years.
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