Job vacancies in the UK have plummeted to their lowest level in almost four years, with official statistics indicating a drop to 781,000 jobs in early 2023. This decline mirrors a decrease in payroll numbers and suggests a weakening demand for labor, coupled with rising employment costs. Though average pay has risen by 5.9%, anticipated increases in National Insurance Contributions and the National Minimum Wage are expected to exert downward pressure on wages. Moreover, despite an unemployment rate holding steady at 4.4%, the employment rate remains below the government's target.
The number of jobs on offer dropped to 781,000 in the first three months of the year, suggesting demand for workers is weakening as employment costs grow.
The short-term impact of the rise in labour costs which came into effect in April, will likely put downward pressure on pay over the coming months.
The employment rate for people aged 16 to 64 years was 75.1%, still below Labour's target of 80% employment.
Wage growth is slightly ahead of the previous period and was lifted by the public sector, according to Liz McKeown.
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