ONS latest | UK labour market steadies, but young workers continue to be left behind

The UK labour market showed further signs of levelling out in the latest Office for National Statistics figures, suggesting the sharp slowdown seen earlier this year may be beginning to ease.

The unemployment rate remained at 4.9% in the three months to May, while the employment rate was broadly unchanged at 75.1%. Vacancies fell by 7,000 to 712,000 between April and June – the smallest monthly decline for several months – while regular pay growth held at 3.4%. Meanwhile, payroll employment was broadly flat in June, adding to signs that the labour market may be settling after several months of gradual cooling.

Although recruitment remains subdued compared with recent years, the latest figures point to a labour market that is becoming more stable rather than continuing to weaken.

That stability, however, has yet to translate into renewed confidence among employers.