Faarea Masud reported for BBC Business and highlighted a concerning trend in job vacancies reaching their lowest level in nearly four years. The Office for National Statistics (ONS) revealed that the number of jobs available dropped to 781,000 in the first quarter of the year, along with a decline in payroll numbers. Despite this, average UK pay saw a 5.9% increase, although the rise in employer National Insurance Contributions and National Minimum Wage adjustments may impact salaries moving forward.
Sarah Coles, head of personal finance at Hargreaves Lansdown, noted that the impending tax increase for employers likely influenced the decision to hold back on hiring. Employment Minister Alison McGovern expressed optimism about the rise in real wages and anticipated improvements in living standards due to changes in April. However, there was a drop of 78,000 workers on payrolls in March, signaling possible caution from businesses in hiring practices to manage costs.
The UK unemployment rate remained at 4.4%, with the employment rate for individuals aged 16 to 64 at 75.1%, still below the target set by Labour. The ONS advised interpreting the employment figures cautiously due to low response rates in their survey. While current wage growth appears robust, economists like Yael Selfin from KPMG UK warned of potential downward pressure on pay due to increased labour costs. Additionally, Anna Spaul, market intelligence director at ManpowerGroup, highlighted the broader impact of factors like Trump’s tariffs and the British Steel negotiations, causing uncertainty among businesses and potentially affecting the labor market in unforeseen ways
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