Private sector pay growth falls as job vacancies hit five-year low – here’s why

• UK job vacancies dropped by 6,000 to 707,000 between May and July, reaching their lowest level in over five years, excluding the pandemic.
• The national unemployment rate remained steady at 4.9 per cent, although smaller firms reported freezing recruitment due to rising operational and labour costs.
• Private sector wage growth eased to a six-year low of 2.8 per cent, indicating a potential squeeze on household finances and business budgets.
• Overall regular wage growth rose slightly to 3.5 per cent, driven by a 6.1 per cent increase across the public sector following recent NHS pay awards.
• Economists and business leaders warned that the UK faces a deepening jobs drought and called for government interventions ahead of the Autumn Budget.

IN FULL

UK job vacancies slip to five-year low in latest worrying sign for economy