UK Job Vacancies Reach Lowest Point in Five Years
The number of job vacancies in the UK has declined to its lowest level in five years, with significant decreases observed in the hospitality and retail sectors.
Unemployment Rate and Earnings Growth
According to the Office for National Statistics (ONS), the unemployment rate increased slightly to 5% in the three months leading up to March, up from 4.9% in the preceding three months to February.
During the first quarter of the year, average regular earnings growth slowed to 3.4%, which translates to a 0.3% increase when adjusted for inflation.
ONS Commentary on Labour Market Conditions
Liz McKeown, director of economic statistics at the ONS, commented on the data, stating:
"The latest figures suggest the labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago."
Job Openings and Sector-Specific Trends
Preliminary ONS estimates indicate that between February and April, the number of job openings decreased by 28,000, or 3.9%, reaching 705,000 vacancies, the lowest since April 2021.
McKeown highlighted that:
"Lower-paying sectors such as hospitality and retail have seen some of the largest falls in vacancies and payroll numbers, both in recent months and over the last year."
Payroll Employment Figures
The ONS also reported a decline in the number of people on payrolls in April, with payroll employment dropping by 100,000 in that month.
However, McKeown noted that these figures coincide with the start of the new tax year and carry a higher degree of uncertainty, often experiencing larger than average upward revisions:
"The figures come at the start of the new tax year, and they carry greater uncertainty and have often seen larger than average upward revisions."
