Latest news with #jobvacancies
Yahoo
7 days ago
- Business
- Yahoo
UK jobs market continues to cool as pay growth slows
The UK jobs market continued to cool in May, with unemployment ticking higher and pay growth slowing, according to the latest figures from the Office for National Statistics (ONS). The rate of unemployment rose to 4.7% in the March to May period, ONS data released on Thursday showed. This was highest rate in around four years and was up from 4.6% for the three months to April. The number of employees on the payroll in May was down by 25,000 on the month, though this was lower than a previous estimate of 109,000 and less than a decline of 55,000 in April. Estimates for payrolled employees in the year to May fell by 135,000. Early estimates for the number of employees on the payroll in June fell by 41,000 on the month and 178,000 on the year. The number of job vacancies in the UK fell by 56,000 in the three months to June. The ONS said feedback from its vacancy survey suggested some firms may not be recruiting new workers, or replacing workers who have left. Read more: Jobs data increases odds on Bank of England interest rate cut Annual wage growth excluding bonuses eased to 5% in March to May, having fallen to 5.2% in the previous three months. Employers have been grappling with higher labour costs after the rate of their national insurance contributions and the national minimum wage rose in early April, which were changes announced by chancellor Rachel Reeves in the autumn budget. Liz McKeown, director of economic statistics at the ONS, said: "The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated. "Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards. The number of job vacancies is still falling and has now been dropping continuously for three years." This latest data adds to pressure on the Bank of England in deciding when to further lower interest rates, as it tries to balance keeping inflation under control, while also avoiding a slowdown in the labour market. Bank of England governor Andrew Bailey said in an interview with The Times over the weekend that the central bank was ready to cut interest rates further if the UK job markets begins to show clear signs of slowing down. Bailey expressed a cautious yet optimistic outlook, suggesting that 'the path is downward' for interest rates, currently set at 4.25%. Investors remain confident that the BoE will cut interest rates at its next meeting on 7 August, even as UK inflation rose unexpectedly to a near 18-month high in June as food and fuel prices surged. Consumer prices rose by an annual rate of 3.6% in June, up from 3.4% in May, according to ONS data published on Wednesday. That was the highest rate since January 2024. Read more: UK inflation unexpectedly rises in June on higher fuel prices Paul Dales, chief UK economist at Capital Economics, said: "The fallout in the labour market from the hikes in national insurance contributions and the minimum wage is not as big as previously thought. Even so, as payroll employment is falling and wage growth is easing, the Bank of England will still continue to cut interest rates despite yesterday's strong inflation release." Sarah Coles, head of personal finance at Hargreaves Lansdown and Yahoo Finance UK personal finance columnist, said: "The Bank of England was hoping for bad news from the labour market, and it got what it wanted: wage growth has slowed and unemployment has risen again. For the Bank, this is a sign of growing slack in the labour market, which is likely to ease inflationary pressures, and mean it can cut rates sooner rather than later." Victoria Scholar, head of investment at Interactive Investor, said: "Amid the domestic and international economic uncertainty, employers are taking a cautious approach, refraining from taking on the fixed costs of extra staff where possible. "Data this week paints a rather gloomy picture for the UK economy with disappointing GDP, inflation and employment data. "Although inflation came in hotter-than-expected, the Bank of England is expected to look through this, focusing instead on the deteriorating growth outlook and jobs market weakness, with the central bank still likely to cut rates by 25 basis points next month and the same again before year-end." Read more: Bank of England governor warns tariff hikes risk 'fragmenting the world economy' Reeves calls on regulators to loosen rules in push to spur investment How to make pension pots tax-efficientError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
UK jobs market continues to weaken
The UK jobs market has weakened further as the number of job vacancies continues to fall and wage growth slows, according to official statistics. The annual rate of pay growth in the three months between March and May was 5%, the latest figures from the Office for National Statistics (ONS) show. Meanwhile, the number of vacancies has fallen again to 727,000, marking three continuous years of falling job openings. The ONS said survey data suggested that some firms may not be recruiting new workers or replacing ones who have left. The number of job vacancies is now at its lowest in 10 years, excluding the plunge seen during the pandemic when lockdowns stopped firms from hiring. Alongside falling job openings, the unemployment rate has risen to 4.7%, the highest for four years, although the ONS has said this data needs to be treated with caution due to problems with how it is collected. The labour market data is one of things the Bank of England will look at next month when it decides whether or not to cut interest rates. It may choose to cut rates to boost the labour market or raise them to reduce inflation by encouraging less spending. Most economists are predicting a cut. Earlier this week, in an interview with the Times, the Bank of England governor Andrew Bailey indicated there could be larger cuts to interest rates if the jobs market showed signs of slowing down.
Yahoo
17-07-2025
- Business
- Yahoo
UK jobs market continues to cool, pay growth slows
The UK jobs market continued to cool in May, with unemployment ticking higher and pay growth slowing, according to the latest figures from the Office for National Statistics (ONS). The rate of unemployment rose to 4.7% in the March to May period, according to ONS data released on Thursday, up from 4.6% for the three months to April. The number of employees on the payroll in May was down by 25,000 on the month, though this was lower than a previous estimate of 109,000 and less than a decline of 55,000 in April. Read more: UK inflation unexpectedly rises in June on higher fuel prices Estimates for payrolled employees in the year to May fell by 135,000. Early estimates for the number of employees on the payroll in June fell by 41,000 on the month and 178,000 on the year. The number of job vacancies in the UK fell by 56,000 in the three months to June. The ONS said that feedback from its vacancy survey suggested that some firms may not be recruiting new workers, or replacing workers who have left. Annual wage growth excluding bonuses eased to 5% in March to May, having fallen to 5.2% in the previous three months. Liz McKeown, director of economic statistics at the ONS, said: "The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated. "Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards. The number of job vacancies is still falling and has now been dropping continuously for three years." Jobs and pay growth data is closely watched by the Bank of England, in helping guide its decisions on interest rates. Bank of England governor Andrew Bailey said in an interview with The Times over the weekend that the central bank was ready to cut interest rates further if the UK job markets begins to show clear signs of slowing down. Bailey expressed a cautious yet optimistic outlook, suggesting that 'the path is downward' for interest rates, currently set at 4.25%. Investors remain confident that the BoE will cut interest rates at its next meeting on 7 August, even as UK inflation rose unexpectedly to a near 18-month high in June as food and fuel prices surged. Consumer prices rose by an annual rate of 3.6% in June, up from 3.4% in May, according to ONS data published on Wednesday. That was the highest rate since January 2024. Read more: Bank of England governor warns tariff hikes risk 'fragmenting the world economy' Reeves calls on regulators to loosen rules in push to spur investment How to make pension pots tax-efficientError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
14-07-2025
- Business
- South China Morning Post
AI is already showing signs of slashing job openings in the UK
UK businesses are dialling back hiring for jobs that are likely to be affected by the roll-out of artificial intelligence, a study found, suggesting the new technology is accentuating a slowdown in the nation's labour market. Job vacancies have declined across the board in the UK as employers cut costs in the face of sluggish growth and high borrowing rates, with the overall number of online job postings down 31 per cent in the three months to May compared with the same period in 2022, a McKinsey & Co analysis found. But it has been the most acute for occupations expected to be significantly altered by AI: Postings for such jobs – like white-collar ones in tech or finance – dropped 38 per cent, almost twice the decline seen elsewhere, according to the consulting firm. 'The anticipation of significant – albeit uncertain – future productivity gains, especially as the technology and its applications mature, is prompting companies to review their workforce strategies and pause aspects of their recruitment,' said Tera Allas, a senior adviser at McKinsey. The decline in job vacancies has been the most acute for occupations expected to be significantly altered by AI. Photo: Shutterstock Images The trend appears to be exerting another drag on the UK job market just as tax increases prompt cuts in lower-skilled sectors like retail and hospitality and the pace of economic growth stalls.
Bloomberg
13-07-2025
- Business
- Bloomberg
AI Is Already Showing Signs of Slashing Job Openings in the UK
UK businesses are dialing back hiring for jobs that are likely to be affected by the rollout of artificial intelligence, a study found, suggesting the new technology is accentuating a slowdown in the nation's labor market. Job vacancies have declined across the board in the UK as employers cut costs in the face of sluggish growth and high borrowing rates, with the overall number of online job postings down 31% in the three months to May compared with the same period in 2022, a McKinsey & Co. analysis found.
