The number of job vacancies in the UK has fallen to its lowest level in five years, according to the latest official figures from the Office for National Statistics (ONS), as businesses cut back on recruitment amid rising costs and economic uncertainty.
Labour Market Weakens
The ONS reported that job vacancies in the March to May 2026 period fell to 707,000, the lowest since February to April 2021. While the ONS said the labour market remained "broadly stable", it noted signs of weakening. Liz McKeown, the ONS's director of economic statistics, said the further drop in vacancies suggested that "firms are becoming more cautious about taking on new staff."
| Metric | Period | Value | Change |
|---|---|---|---|
| Job vacancies | March-May 2026 | 707,000 | Lowest since Feb-Apr 2021 |
| New hires (inflows) | April 2026 | <540,000 | Lowest since March 2021 |
| Unemployment rate | 3 months to April 2026 | 4.9% | Down from 5.0% (3 months to March) |
| Regular pay growth (ex-bonuses) | 3 months to April 2026 | 3.4% | Unchanged from 3 months to March |
McKeown also noted "some signs of workers moving into self employment" against the backdrop of falling vacancies. Meanwhile, regular wage growth in the private sector was rising at its lowest rate in five and a half years, she added.
Sectoral Impact and Hiring Caution
The professional services sector recorded the largest fall in vacancies, but retail and hospitality also saw significant drops, according to the ONS. Data from HMRC shows that the number of new recruits, or 'inflows', stood at just under 540,000 in April — the lowest monthly figure since March 2021, also marking a five-year low.
Business Perspectives
Jamie Younger, who opened The Victory pub in south London last month, said rises to the minimum wage and national insurance contributions had "made life very difficult." He told the BBC that many pubs and restaurants are now only hiring people with several years of experience, "rather than trying to support a younger generation and get them into their first job." Younger called for a VAT cut for hospitality, which he said would ease pressure and "give us the opportunity to train young people."
Sasha Swann, a student working in the pub's kitchen over the summer, said she had been thrown in "at the deep end… but it's made me learn so much." She said she was "extremely fearful" about entering the world of work after university. "It's all up in the air whether we are going to get those jobs," she added.
Wider Economic Context
The jobs figures came ahead of the Bank of England's decision to hold interest rates at 3.75%. Bank Governor Andrew Bailey said it was "encouraging" that oil prices had fallen following a peace deal between the US and Iran, but noted there is still "inflationary pressure" in the economy.
Shazia Ejaz, director of campaigns at the Recruitment and Employment Confederation (REC), said: "Global pressures and domestic political uncertainty are making employers hesitant to commit to hiring although latest REC data shows temp hiring is faring better than permanent. With the Gulf crisis resolution on the table, the government has an opportunity to kick off a new phase in hiring."
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