'Lack of momentum' | Budget must avoid extra hiring costs as vacancies hit decade low, experts warn

The Government has been urged to make recruitment more affordable and avoid placing further costs on employers after the latest labour market figures revealed another fall in payrolls and vacancies, alongside a sharp rise in youth unemployment.

The latest ONS labour market figures show that the estimated number of payrolled employees fell by 26,000 between July and August 2026 to 30.2million. The provisional total was 145,000 lower than a year earlier.

Vacancies also fell by 8,000 during the quarter from June to August, leaving 702,000 unfilled roles across the UK. Outside the pandemic, vacancies have not been this low since 2014.

Lauren Thomas, Economist at Deel, said the continued absence of hiring momentum should prompt action from the Government ahead of the Budget.