Official statistics show that the labour market is continuing to weaken, despite the volatility caused by the pandemic.
According to the latest Office for National Statistics data, which covers the three-month period ending June 2025 in the UK there are 727,000 vacancies, down from the 738,000 vacancies the previous month.
Since May 2022, when the number of job openings peaked at 1.3 million after the pandemic, employers have been offering fewer jobs each month. ONS data show that, except for the period between April 2019 and April 2020, vacancies have fallen to their lowest level since March 2015.
James Cockett is a senior labour economist at the CIPD. He said that today’s data shows that the labour markets are cooling down, reducing the recruitment pressure on employers.
The number of unemployed candidates per job opening, a sign that the labour market is slackening, has reached levels not seen since early 2016, outside the pandemic.
In the three-month period ending May 2025, the number of unemployed persons per vacancy was 2.3. This is the highest level since April 2020. Despite the pandemic this number is now at its highest since March 2016.
The average growth in earnings, excluding bonuses, fell from 5.2% to 5.0%. The unemployment rate increased to 4.7% from 4.6%.
Neil Carberry, chief executive of the Recruitment and Employment Confederation, said that while the overall levels for employment and unemployment are relatively stable, there is a clear trend of deterioration across most measures.
This reflects the reaction of businesses to an uncertain and rising external environment. We can see in the private sector that temporary work is outperforming other hiring methods right now, as firms seek flexibility.
Early estimates of June 2025 show that there were 30.3 million employees, a drop of 0.6% compared to June 2024. This is equivalent to 178,000 less employees.
Paul Nowak, TUC general secretary, said: “Fragilities on the job market have been in the making for a long time and are another toxic Tory Legacy.” Although it is encouraging to see the decline in youth unemployment and economic inactivity rates, the jobs market still has a long way to go and living standards remain under pressure.
“There’s no quick fix for these long-term problems. After years of Conservative cuts we now have a government that is investing in infrastructure, public services and skills. Instead of maintaining high interest rates, the Bank of England should offer some assistance. Another rate cut will ease pressure on household budgets while making it easier for businesses to invest.
Carberry said: “We shouldn’t let pessimism set in – our data show that businesses are confident about their plans and households have rebuilt cash positions after the last few years. Carberry added: “We should not let pessimism take hold – our data shows businesses are confident in their own plans, while households have rebuilt their cash position after the past few years.”
“A reduction in interest rates next month would help, but it’s also important to reassure firms that they won’t be hit with another tax raid as part of the Budget and fix the impracticalities within the Employment Rights Bill. This legislation isn’t yet suitable for the modern workplace.”
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