Latest labour market data shows downturn in hiring
The latest statistics on the labour market released by the Office for National Statistics (ONS) show a decrease of 21,000 in the number of vacancies compared to the previous quarter.
20 Oct 2026
The latest statistics on the labour market released by the Office for National Statistics (ONS) show a decrease of 21,000 in the number of vacancies compared to the previous quarter. The decrease is mostly attributed to smaller firms who suggest increased labour costs have slowed recruitment.
In addition, the estimate for payrolled employees in the UK fell by 111,000 (0.4%) between August 2025 and August 2026. Commenting on the data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors said:
'Demand for labour has been undermined by a succession of employment policies which have increased the cost and risk of hiring staff. The labour market is unlikely to strengthen until the Government tackles this cost of employment crisis.'
UK unemployment was estimated at 4.7% for June to August 2026, down 0.1% on the year and the last quarter. Unemployment for those aged 16 to 24 was 15.6% for the three-month period, down from 16.4% in the previous three months but higher than the rate seen in the equivalent period last year (14.6%). Youth unemployment remains a government focus with Work and Pensions Secretary Pat McFadden commenting on the release of the Industrial Strategy Jobs Plans:
'Too many young people have been locked out of opportunities for too long.'
Other data released showed annual growth in average regular earnings (excluding bonuses) was 3.7% in June to August 2026 and had been relatively stable. Adjusted for inflation, annual growth in real terms was 0.8%.
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