UK Job Vacancies Hit 5-Year Low as Hiring Slows

UK job vacancies have fallen to their lowest level in more than five years, excluding the pandemic period, as small businesses cite rising labour costs and economic uncertainty for scaling back recruitment. The Office for National Statistics reported on August 18, 2026, that early estimates for the three months to July 2026 showed a decrease of 6,000 vacancies compared to the previous quarter, bringing the total to 707,000. This figure is the lowest since September to November 2014, when there were 703,000 vacancies.

The decline was driven primarily by smaller firms, according to the ONS. Its Vacancy Survey indicated that many small businesses are not recruiting due to increases in labour costs and other operating expenses. The unemployment rate held steady at 4.9% over the same period. While overall regular wage growth rose slightly to 3.5% annually in the three months to June, private sector pay growth slowed to 2.8%, its lowest level since late 2020.

Business owners and industry experts pointed to a combination of factors behind the hiring slowdown. Key reasons included the financial impact of recent policy changes, such as the Employment Rights Bill and increases in employer...