UK job vacancies hit the lowest level since 2014, jobless rate 4.7%
UK statistics show the biggest drop in vacancies this year. Unemployment edged down, but small businesses are hiring less.
Event: October 20, 2026
Primary source: October 20, 2026
Published here: October 20, 2026 at 07:10 AM UTC
Read: 2 min
What happened
According to the ONS, the UK statistics office, vacancies fell by 21,000 to 691,000 in July to September. Outside the pandemic, there have not been this few since 2014. Unemployment was 4.7% in June to August, down 0.1 points. Regular pay is up 3.7% a year, about 0.8% after inflation.
Why it matters to you
If you are job hunting in the UK or work with UK clients, the market has tightened. Small firms say outright that they are not hiring because staff costs went up. Data like this matters for the pound and Bank of England rates.
What to check and watch
The next ONS labour market report is out on 17 November. Watch whether vacancies and payroll numbers keep falling.
The ONS published the report on 20 October. Its main message: the labour market is broadly flat in 2026. The employment rate edged up and unemployment edged down.
Vacancies fell by 21,000, or 2.9%, to 691,000 in July to September. That is the biggest quarterly fall this year, and 37,000 lower than a year ago. The ONS says that outside the pandemic, the last time vacancies were this low was July to September 2014. Small firms in its survey point to higher staff costs.
Payrolled employees, based on tax data, were down 111,000 on the year to August. The early estimate for September was little changed on the month at about 30.3 million. The claimant count rose to 1.701 million.
Regular pay excluding bonuses is growing 3.7% a year. Adjusted for CPI inflation, that is about 0.8%. Unemployment among 16 to 24 year olds is 15.6%, the BBC reports, lower than in spring but higher than a year ago.
The ONS warns that survey data are still volatile and advises focusing on long-term trends rather than one quarter.
Confirmed facts
- UK vacancies fell by 21,000 (2.9%) to 691,000 in July to September 2026.[1][2]
- Outside the pandemic, vacancies were last this low in July to September 2014.[1]
- Unemployment was 4.7% in June to August 2026, down 0.1 points on the quarter.[1]
- Regular pay excluding bonuses grew 3.7% on the year, 0.8% after CPI inflation.[1][2]
- The claimant count rose to 1.701 million in September.[1]
- Unemployment among 16 to 24 year olds was 15.6% in June to August.[2]
- The next ONS labour market report is due on 17 November 2026.[1]
Implications
- ConfirmedSmall businesses cite higher staff costs as the reason they are not hiring.
- Our readingSlower pay growth and fewer vacancies give the Bank of England fewer reasons to keep rates high.
Still unknown
- What the Bank of England will do at its next meeting.
- Whether the early September figures get revised in the next report.
Who it affects
UK. Anyone working or job hunting in the UK, and anyone who follows the pound
Sources
- Office for National Statistics: Labour market overview, UK: October 2026 October 20, 2026 · official
- BBC News: Job vacancies fall as small firms cut back on recruitment October 20, 2026 · media
Cover: Freekonomist graphic, a symbolic image, not a photo of the event. This is a news explainer, not financial advice.
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