ONS data shows fall in vacancies
New figures from the Office for National Statistics indicate a reduction in the number of job vacancies, driven in part by smaller firms cutting back on recruitment. The ONS said responses from employers suggested labour costs were a key factor in decisions to scale back hiring.
Small firms point to labour costs
According to the ONS, a material share of small businesses named the cost of labour when explaining why they were recruiting less than previously planned. The agency's employer data captures firms' own reports on recruitment intentions and the reasons behind any changes.
Potential impact across the labour market
Analysts and policymakers monitor vacancy levels as an indicator of labour demand; a fall in advertised roles can alter the balance between jobseekers and open positions. The ONS data showing reduced hiring activity among small firms could have consequences for sectors that rely heavily on smaller employers for new openings.
Ongoing monitoring
The ONS will continue to publish periodic updates on employer demand and recruitment patterns. Those updates will be watched for signs of whether the recent decline in vacancies is temporary or part of a longer-term shift in hiring behaviour among small businesses.