UK unemployment rate falls in pre-budget boost, but firms keep cutting vacancies – business live
The UK unemployment rate fell to 4.7% in June to August, ahead of economists’ expectations, giving Chancellor John Healey a modest boost before the budget in two weeks. Employment also rose, but businesses continued to reduce vacancies, pointing to weaker demand for new workers.
Employment increased by 102,000 to 34.577 million, while unemployment fell by 47,000 to 1.712 million. Vacancies dropped by 21,000 to 691,000 in July to September, their lowest level since early 2021; smaller firms have cited higher employer National Insurance contributions and minimum wages as reasons for holding back recruitment.
- Unemployment fell to 4.7%, below forecasts.
- Employment rose by 102,000 in the quarter.
- Vacancies fell to 691,000 amid higher hiring costs.
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The unemployment rate measures the share of people in the workforce who are looking for work but do not have a job. Employment and unemployment figures show how many people are in work or seeking it, while vacancies indicate how many jobs employers are trying to fill.
The figures matter to the government because a stronger jobs market can support household incomes and tax revenues, while fewer vacancies may signal that businesses are cautious about hiring. Employers have pointed to higher National Insurance contributions and minimum wages as costs affecting recruitment, particularly at smaller firms.