Job vacancies at five-year low as smaller firms scale back recruitment

The number of job vacancies has fallen to its lowest level in more than five years as smaller businesses cut back on recruitment, the latest official figures indicate.

Vacancy numbers dipped slightly over the May-to-July period to 707,000, according to the Office for National Statistics (ONS), which said small firms were citing labour and operating costs as reasons for scaling back hiring.

The ONS said the labour market was “little changed overall”, with the unemployment rate remaining at 4.9%.

Growth in regular earnings – which excludes bonuses – picked up slightly, rising at an annual pace of 3.5% in the three months to June.