Job vacancies fall to lowest level in five years

An important development from the financial markets: Job vacancies fall to lowest level in five yearsJust now Share Save Add as preferred on GoogleGetty ImagesThe number of UK job vacancies has fallen to its lowest level in five years, with hospitality and retail experiencing some of the biggest drops. The unemployment rate rose slightly to 5% in the three months to March, from 4. 9% in the three months to February, according to the Office for National Statistics (ONS).

Average regular earnings growth fell to 3. 4% in the first three months of the year, and was 0. 3% higher after inflation was taken into account.

Economic Details

ONS director of economic statistics Liz McKeown said the latest figures "suggest the labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago". Early ONS estimates suggest the number of job openings fell by 28,000, or 3. 9%, to 705,000 between February and April, its lowest level since April 2021.

"Lower-paying sectors such as hospitality and retail have seen some of the largest falls in vacancies and payroll numbers, both in recent months and over the last year," McKeown said. According to the ONS, the number of people on payrolls in April also fell. Payroll employment figures dropped by 100,000 last month.

However, McKeown pointed out the figures come at the start of the new tax year, and they "carry greater uncertainty and have often seen larger than average upward revisions". Faisal Islam: Six things we now know about the UK economy in chartsWho are the millions of Britons not working?

Financial markets are tracking the development closely as investors assess the likely impact.