UK Hiring Slows as Employers Turn Cautious, Vacancies Hit Multi-Year Low

Vacancies dropped to 711,000, marking the lowest level in nearly five years.

The data signals a shift in sentiment, reflecting growing uncertainty across the labor market.

Despite this, wage growth remained relatively firm, easing only slightly in recent months.

Average weekly earnings rose 3.6% annually, beating expectations for a sharper slowdown.

The unemployment rate fell unexpectedly to 4.9%, surprising economists who forecast stability.

However, rising inactivity, particularly among students, largely drove the decline in unemployment.

Economists noted a softening labor market, limiting wage pressure and reducing inflation risks.

The Bank of England continues monitoring wages closely as it evaluates future interest rate decisions.

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