Stories

Tue, 20 Oct 2026

Tue, 20 Oct 2026 Jobless rate falls but small firms cut back hiring

Small firms cite labour costs as a key factor in scaling back hiring, the Office for National Statistics says.

* UK's unemployment rate has dropped to 4.7% in the three months to August, its lowest level since July last year.
* Job vacancies have fallen by 21,000 to 691,000, with small businesses citing labour costs as a key factor in scaling back hiring.
* The employment rate is edging up and unemployment is at a small drop.
* Average earnings excluding bonuses rose 3.7% in the three months to August.
* Wages grew 0.8% in real terms when taking inflation into account.
* The number of job vacancies fell to its lowest level in more than five years, with the largest decrease in construction jobs.
* Unemployment rate for those aged 16-24 was 15.6% in the June-August quarter.
* Nearly one million young people in the UK are not in education, employment or training (Neet).