'No fire, no hire' | Vacancies hit decade low as cautious employers tighten hiring plans

Vacancies have fallen to their lowest level in around a decade, according to the latest ONS labour market figures, signalling a decisive slowdown in hiring and leaving young and older jobseekers increasingly squeezed out of opportunities.

In the three months to August 2025, job vacancies fell by about 9,000 to 717,000, extending a three-year decline. The unemployment rate rose to 4.8 %, while regular pay grew by 4.7 % year on year and total pay by 5.0 %. Adjusted for inflation, real wage growth remains marginal. Payroll employment data also suggests that hiring momentum has softened further.

Employers pull back as uncertainty grows

Kevin Fitzgerald, UK Managing Director at Employment Hero, said the ONS data “is the latest demonstration of the UK’s tightening labour market.”

“A decline in the employment rate aligns with Employment Hero’s own real-time data, which shows that employment growth is losing momentum,” he said. “Our September Jobs Report found that total employment rose 2.6% in September, but year-on-year growth has fallen sharply from the 8.5% recorded in September 2024.”