The number of job vacancies fell sharply over the summer as employers delayed or scrapped hiring plans as a result of the worsening economic outlook, official figures show today.
Latest data from the Office for National Statistics (ONS) showed vacancies slumped 43,000 to 988,000 in the three months to September.
It was the 15th consecutive month when the number of unfilled jobs was down on the previous quarter.
Total vacancies were 256,000 lower than the level of a year ago
The latest ONS data came as a survey from consultants KPMG and Recruitment and Employment Confederation (REC) for BusinessLDN showed hiring in London falling for the 12th consecutive month.
Anna Purchas, senior London office partner at KPMG, said: “Employers across the capital took a cautious approach to hiring over the summer, with many waiting for more positive signs on the economic outlook to boost confidence and kick start recruitment plans again.
“Where employers in the capital are hiring, they are prepared to pay a premium for the right people, and it is likely that wage inflation will continue to be an issue as the fight for the best candidates continues. Medical and professional services specialists are amongst the most sought-after roles and employers in London are struggling to recruit on a permanent basis, whilst retail and hospitality staff are in high demand as the capital gears up for a busy Christmas.
“As we head to the end of the year, a rebalance in London’s labour market is needed to kick start growth and prompt economic recovery. More focus on reversing the deepening skills gap would be a step in the right direction to seize on the upturn when it comes.”
Neil Carberry, chief executive at REC, said: “It’s been a challenging year for businesses, but they tell us they are feeling cheerier as the economic mood music has improved recently. If this persists permanent hiring may pick up in the next few months. Firms have leaned on temporary work as they face uncertainty this year, and the market for temps has remained resilient because of this.”
Chris Gray, director at recruitment giant ManpowerGroup UK, said: “Employers continue to show signs that they’re interested in hiring but there is less action underway to back up this intent, as they take stock of uncertainties which include high costs, a changing political landscape, and evolving expectations and demands from within the workforce.
“As such we’re seeing a gradual decline in jobs vacancies, with the numbers lowering for a 15th consecutive month. While the 988,000 vacancies advertised is still high, this cooling trend is a slow reset of the labour market, back towards pre-pandemic conditions.
“The tug of war between employers and employees over wages has undoubtedly impacted on this reset — putting the brakes on in many sectors, as businesses grapple with skills shortages and the need to attract new talent while also working hard to retain existing employees by supporting them with pay rises.”
He added the picture was mixed but there were many reasons “to be cautiously optimistic”.
Shadow Chancellor Rachel Reeves said: “Thirteen years of Conservative economic failure has left working people worse off, with low growth, low pay and high taxes.
“Working people saw pay rise faster under the last Labour government. But, with the Conservatives we have seen a decade of stagnant wage growth.
“Labour’s plan to grow the economy will boost wages, create good jobs and get Britain’s future back.”
