London: UK job vacancies have fallen by 21,000 to 691,000 in the three months to September, marking the biggest decline since the start of the year as smaller businesses reduce recruitment amid rising employment costs.
The latest figures from the Office for National Statistics (ONS) showed that vacancies had reached their lowest level in more than 5 years. Construction recorded the largest decrease, while small businesses identified higher labour costs as a major reason for cutting back on hiring.
Despite the slowdown in recruitment, the unemployment rate fell to 4.7 percent in the three months to August. This was the lowest level for more than a year. The employment rate also edged up, suggesting that parts of the labour market were showing signs of improvement.
Employment had increased slightly while unemployment recorded a small decline. The number of employees on company payrolls remained marginally lower over the same period, although the latest monthly figures suggested that the decline could be beginning to level off.
Andy Burnham, Prime Minister of UK warns that high youth unemployment poses serious economic and social challenges. Separate ONS figures have indicated that nearly 1 million young people across the UK are not in education, employment or training.
Employers have faced higher operating costs following increases in National Insurance contributions and the minimum wage. Energy costs also risen since the Iran war began, adding further pressure on businesses already managing tighter budgets.
However, younger workers continued to face difficulties entering the labour market. The unemployment rate among people aged 16 to 24 stood at 15.6 percent in the June-to-August period. Although this was down from 16.4 percent in March to May, it remained above the 14.6 percent recorded during the same period last year.
The latest employment figures come ahead of John Healey, the Chancellor’s first Budget next week. The reliability of labour market statistics has also faced scrutiny following concerns about low response rates to the Labour Force Survey. In an update, the ONS remarked that response levels had improved, although some volatility remained in the data.
TRENDING | India sugar stocks retreat after government halts ethanol use
