UK unemployment falls as vacancies drop below 700,000

The UK unemployment rate fell to 4.7% in the three months to August, while job vacancies dropped below 700,000 for the first time in more than five years, according to figures published by the Office for National Statistics on October 20. The figures show a mixed picture, with fewer people unemployed but fewer openings available to jobseekers. Unemployment was down from 4.9% in the three months to July, its lowest level since the three months to July 2025. The ONS estimated that 1.71 million people were unemployed, 47,000 fewer than in the previous quarter. Vacancies fell by 21,000 to 691,000 in the three months to September. The ONS described the decline as the largest since the start of the year and said smaller firms were particularly pulling back on recruitment. It reported that businesses cited increased labour costs as a key factor. The largest decrease in vacancies was in construction, according to the figures. The latest payroll estimate suggested employee numbers rose by about 13,000 between August and September, following a revised increase of 1,000 between July and August. The ONS cautioned that the most recent payroll data are provisional and likely to be revised....