Vacancies in the UK jobs market have fallen back again while wage growth in the private sector has hit a near six-year low, new figures show.
The Office for National Statistics (ONS) said its early estimates show there were around 6,000 fewer vacancies between May and July, compared with February to April.
This brings the level of vacancies down to 707,000, the lowest in more than five years or, outside of the Covid pandemic years, since 2014.
Early estimates of vacancies in the UK suggest a decrease of 6,000 to 707,000 in the three months to July 2026.
Read the release ➡ https://t.co/xBrIgy8qlJ pic.twitter.com/ti0SE0t9tj
— Office for National Statistics (ONS) (@ONS) August 18, 2026
Vacancies slumped earlier in the year in a sign that firms were pulling back hiring in the face of economic uncertainty and higher wage costs.
The latest ONS survey found that small firms may not be recruiting because of increased labour costs and other business expenses.
The data also revealed that regular average wage growth in the UK’s private sector fell to 2.8% in the three months to June – the lowest level since the three months to October 2020.
This is despite overall regular wage growth rising to 3.5% in the same period, from 3.4% in the three months to April, driven by a 6.1% increase across the public sector as a result of NHS pay awards.
The UK’s overall unemployment rate remained unchanged at 4.9% in the three months to June.
Regular wage growth in the three months to June 2026 was 3.5% excluding bonuses, up on the previous period.
Including bonuses the rate was 4.1%, down from the previous period.
Read the release ➡ https://t.co/8FKHMf2iHI pic.twitter.com/FyDXTJyGTT
— Office for National Statistics (ONS) (@ONS) August 18, 2026
ONS director of economic statistics Liz McKeown said: “Vacancies remain broadly flat, though a small fall in the latest period puts them at the lowest level in more than five years.
“The latest decrease was driven mainly by smaller businesses, which cite labour and operating costs as reasons for not hiring new staff or replacing leavers.
“Regular wage growth has remained broadly stable in recent months.
“However, private sector pay growth has continued to ease, while public sector pay growth remains elevated due to the timing of the latest NHS pay awards.”
Experts said the downturn in private sector pay could signal a squeeze in the cost of living amid higher energy costs linked to the Iran war.
Suren Thiru, chief economist for the Institute of Chartered Accountants in England and Wales (ICEAW) said: “The UK labour market remains stuck in a low-churn limbo, with employers reluctant to hire, fire or offer bigger pay rises as they grapple with rising costs, intensifying global headwinds and heightened policy uncertainty.
“Cooling private sector wage growth is a double-edged sword for the economy, reducing the risk of interest rate rises by limiting inflationary spillovers from the Iran war-induced energy shock, but also signalling a deepening cost of living squeeze.
“The persistent slide in vacancies is a red flag for the jobs market, suggesting labour demand is shrinking amid soaring employment and energy costs, while greater automation is also squeezing some entry-level roles.”
