UK employers cut job vacancies as Burnham aims to lift living standards

UK employers reduced the number of job vacancies in May, adding to signs of a cooling labour market as the new government faces pressure to improve living standards.

Official figures from the Office for National Statistics showed vacancies fell to 712,000 in the three months to May, nearly half the level seen in 2022. The decline suggests many firms are holding back on hiring, even as unemployment remains unchanged at 4.9%, according to the same data cited in the report.

The figures point to a fragile economic backdrop at a time when policymakers are trying to support growth and household incomes. With employers slowing recruitment, the labour market appears less tight than it was during the post-pandemic rebound, when vacancies surged to historically high levels.

The report, drawn from a monitored public feed, said the latest numbers underline the challenge facing the new prime minister as he aims to lift living standards. It also noted that business caution has increased amid wider uncertainty, including the conflict in the Middle East, which is weighing on the economic outlook.

A steady unemployment rate alongside fewer vacancies can signal a market that is no longer overheating, but it may also mean fewer opportunities for people looking for work or trying to move jobs. The drop in vacancies is likely to be watched closely for signs of whether firms are responding to softer demand or simply delaying hiring decisions until conditions improve.

The Guardian Business said the ONS data show employers put off hiring new staff in the three months to May. That adds another layer of pressure on efforts to strengthen wage growth and consumer confidence, both of which are closely tied to the health of the jobs market.

Source: The Guardian Business - https://www.theguardian.com/business/2026/jul/21/uk-employers-job-vacancies-andy-burnham-unemployment