Job vacancies in September-November fell 31,000 on the previous three months to a three-year low of 818,000, ONS figures show.
Fears over Rachel Reeves’ Budget continue to mount (Image: Getty)
Rachel Reeves‘ Budget nightmare has worsened as figures show job vacancies falling to an all time low.
The number of vacancies in September-November fell 31,000 on the previous three months to a three-year low of 818,000. The total was last lower in March-May 2021, when it was 765,000 and Britain was in the grip of the Covid pandemic.
The total has been falling for 29 months in a row, marking the longest period of continuous decline the UK has seen since current records began in 2001.
Hopes of an interest rate cut on Thursday by the Bank of England have also been dashed by the latest statistics from the Office for National Statistics (ONS), which also show wage growth accelerating.
Official figures show regular earnings growth jumped to 5.2% in the three months to October, up from a revised 4.9% in the previous three months and the first time it has risen since August last year.
The number of job vacancies fell to a three year low (Image: Getty)
Earnings growth also outstripped inflation by 3% in the three months to October, with Consumer Prices Index (CPI) inflation taken into account.
ONS director of economic statistics, Liz McKeown, said: “After slowing steadily for over a year, growth in pay excluding bonuses increased slightly in the latest period, driven by stronger growth in private sector pay.”
On payrolls, she added: “We have seen annual growth rates continue to slow, showing a consistent trend with our latest jobs data from employers. The number of job vacancies has also fallen again, though the total remains a little above where it was before the pandemic.”
It comes as fears continue to mount over an impact on hiring and jobs after the Budget announced steep increases in employers’ National Insurance contributions and a minimum wage rise next year.
The figures also show that on a four-quarter average there were 40,000 fewer jobs in retail than last year and 225,000 fewer than five years ago.
The Bank of England has been tipped to hold interest rates (Image: Getty)
Helen Dickinson, chief executive at the British Retail Consortium (BRC), said: “The current fall is partially explained by ongoing transformation in the industry, from increased investment in automation and higher productivity, to a shift to outsourcing of warehousing and logistics that are not all captured by the ONS retail figures.”
She added retailers are responding to the changing business landscape, with most saying they will further increase investment in automation and improve worker productivity.
Ms Dickinson said: “It is inevitable the Budget will also put pressure on jobs and hours in the coming year, potentially affecting communities all over the UK that rely on retail as a vital provider of entry level, local jobs.”
The BRC said the Chancellor’s changes to the rate and threshold for employers’ NI contributions will cost the industry over £2.3billion.
