The UK labour market shows further signs of slowing down, with recent data from the Office for National Statistics revealing declines in both job vacancies and the number of employees on company payrolls.
Between May and July, the number of job vacancies dropped by 44,000, while payroll figures fell by 26,000 in June, a slightly larger decrease than the 25,000 seen in May.
Over the year to June, payroll employment fell by 149,000, with preliminary figures for July suggesting a further monthly decline of 8,000 and an annual drop of 164,000.
The unemployment rate remained steady at 4.7% for the period from April to June, unchanged from the previous quarter. Meanwhile, annual wage growth excluding bonuses held at 5%, matching the rate from the prior three months.
Rising labour costs have affected employers, following increases in national insurance contributions and the national minimum wage introduced in April as part of last year’s autumn budget.
Liz McKeown, director of economic statistics at the ONS, noted that these figures highlight a continued cooling in the labour market, particularly in sectors such as hospitality and retail, where job losses and falling vacancies have been concentrated.
"The number of employees on payroll has now fallen in ten of the last twelve months, with these falls concentrated in hospitality and retail," she said.
"Job vacancies, likewise, have continued to fall, also driven by fewer opportunities in these industries."