'Stark reality' | UK labour market stuck in 'low hire, low fire' cycle as vacancies fall

The UK has settled into a “low hire, low fire” labour market, experts have warned, as the latest official figures revealed another fall in vacancies and continued pressure on young jobseekers.

The employment rate edged up by 0.1 percentage points to 75.1% between April and June 2026, according to the latest Office for National Statistics figures. Unemployment dipped by the same margin to 4.9%, while economic inactivity remained at 20.9%.

However, the apparent stability masked continuing weakness in recruitment. The estimated number of vacancies fell by 6,000 to 707,000 between May and July, the lowest level recorded outside the pandemic since late 2014.

Meanwhile, the number of employees on UK payrolls fell by 78,000, or 0.3%, between June 2025 and June 2026. An early estimate for July indicated another monthly decline of 13,000, leaving the total at 30.3 million, although the provisional figure is likely to be revised.