UK job vacancies fall 21,000 as unemployment drops to 4.7%
Small firms cut hiring, while the unemployment rate fell to 4.7% in the latest ONS data.
Key facts
- Job vacancies fell 21,000 to 691,000 in the three months to September, the lowest since 2021.
- Unemployment rate fell to 4.7% in the three months to August, the lowest in more than a year.
- Small firms cited rising labour costs, including energy, National Insurance, and minimum wage, as reasons for scaling back recruitment.
- Average earnings excluding bonuses rose 3.7% in the three months to August.
- Unemployment for ages 16‑24 was 15.6% in the June‑August quarter.
The Office for National Statistics released figures on 20 October 2026. According to the ONS, job vacancies fell 21,000 to 691,000 in the three months to September. The decline is the largest since the start of the year and the lowest level in more than five years.
The unemployment rate fell to 4.7% in the three months to August, the lowest for more than a year. The Guardian reported the drop as unexpected. The ONS said the rate had fallen from 4.9% in the previous quarter.
Small firms said rising labour costs were the main reason for cutting back recruitment. Energy costs have risen since the Iran war began, and increases in National Insurance and the minimum wage also add to hiring expenses.
Average earnings excluding bonuses rose 3.7% in the three months to August. The unemployment rate for 16‑24 year olds was 15.6% in the June‑August quarter. Pat McFadden said the figures show the resilience of the labour market.
Context
The data come as the UK prepares for its Budget on 28 October, and as energy costs remain high. The figures also feed into Bank of England interest‑rate discussions.
How outlets headlined it
How this was made
Compiled by our AI newsroom from 2 independent outlets, checked by a separate AI editor against the sources. Only claims found in the sources are reported. Spot an error? Every source is linked below.
Correction or source request? simoneggert16@gmail.com
Open reader debate: Factual contributions and additions are synchronized directly in real time across all readers.
Loading contributions from cloud server…
Reader Discussion & Community Notes