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UK labour market weakens as job vacancies hit five-year low
The United Kingdom's labour market is showing signs of significant cooling, characterized by a five-year low in job vacancies and weakening employment intentions. According to the Office for National Statistics, vacancies fell to 707,000 for the period between May and July, while the unemployment rate remained steady at 4.9%.
Private sector pay growth has slowed to 2.8%, its weakest level since late 2020, contrasting with a 6.1% increase in the public sector. This divergence is partly attributed to the timing of NHS pay awards. Meanwhile, consumer confidence has dipped as job security fell to its lowest level since April 2023.
A survey by the CIPD describes the current environment as a “low-hire, low-fire” market. Employer confidence is near record lows outside of the pandemic, with the net employment balance at +9 and only 57% of private sector employers planning to recruit in the next three months. The CIPD has urged the government to consider reducing National Insurance thresholds and addressing the costs of hiring to prevent a prolonged period of stagnation.
Entities
Andy Burnham · Bank of England · CIPD · Chartered Institute of Personnel and Development · James Cockett · Office for National Statistics · Rightmove · S&P Global · United Kingdom
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The net employment balance remains at +9, near its lowest level outside of the pandemic. businessnewswales.com · investinglive.com · www.cityam.com · londonlovesbusiness.com
- [DISPUTED] London saw the sharpest annual house price fall at 3.1%. investinglive.com
- [● 3 SOURCES] Only 57% of private sector employers plan to recruit in the next three months. businessnewswales.com · investinglive.com · www.cityam.com
- [● 3 SOURCES] Private sector employment intentions are at a joint low of +11, excluding the pandemic period. businessnewswales.com · investinglive.com · www.cityam.com
- [○ 1 SOURCE] UK asking prices fell 2.0% in the four weeks to August 8, the steepest fall since 2018. investinglive.com
- [● 3 SOURCES] The UK is experiencing a “low-hire, low-fire” labour market where hiring has weakened but redundancies have not risen. businessnewswales.com · investinglive.com · www.cityam.com
- [○ 1 SOURCE] The CIPD is calling on the government to restore the employer National Insurance threshold to £9,100. businessnewswales.com
- [● 2 SOURCES] 31% of employers report hard-to-fill vacancies, particularly in construction and healthcare. www.cityam.com · businessnewswales.com
- [● 3 SOURCES] UK consumer confidence fell to 42.9 in August from 43.4 in July. www.standard.co.uk · nation.cymru
- [● 3 SOURCES] UK job security dropped to 45.6 in August, the lowest level since April 2023. www.standard.co.uk · nation.cymru
- [● 3 SOURCES] The UK unemployment rate remained at 4.9%. www.easterneye.biz · ca.news.yahoo.com · www.bbc.co.uk
- [● 3 SOURCES] Private sector pay growth slowed to 2.8%. www.easterneye.biz · ca.news.yahoo.com · www.bbc.co.uk