UK vacancies fell to 707,000, with small firms driving the pullback.
Why it matters: The drop is a fresh sign the UK labour market is cooling, which can ease wage pressure but also signal softer demand. For employers and investors, the sharpest slowdown is showing up among smaller firms, where hiring is most exposed to cost pressure.
- UK vacancies fell to 707,000 in May to July 2026, down 6,000 on the quarter and 19,000 on the year.
- Outside the pandemic, that was the lowest vacancy level since September to November 2014.
- Firms with 1 to 9 employees cut vacancies by 8,000 on the quarter to 95,000, the lowest for that size band since January to March 2014.
- The ONS said some firms are not recruiting because of higher labour costs and other operating expenses.
The UK jobs market is cooling further, with the Office for National Statistics saying vacancies fell to 707,000 in May to July 2026. That is down 6,000 from the previous quarter and 19,000 from a year earlier, and outside the pandemic period it is the lowest reading since September to November 2014. ONS bulletin
The decline is being led by smaller businesses. Employers with 1 to 9 staff saw vacancies fall by 8,000 on the quarter to 95,000, the lowest level for that group since January to March 2014. The ONS said feedback from its Vacancy Survey suggests some firms are holding back on recruitment because of higher labour costs and other operating expenses. ONS dataset
The broader backdrop points to a labour market that is loosening, not collapsing. The UK had 2.5 unemployed people per vacancy in April to June 2026, and the ONS said that ratio has held at 2.5 since July to September 2025 after rising steadily from July to September 2024. That tends to ease pressure on pay growth over time, but it also signals less aggressive hiring by employers. ONS bulletin
The Bank of England has been flagging the same direction of travel. In July 2026, its agents said employment intentions remained broadly flat because of weak or uncertain demand, labour-cost pressures and increased automation. Its July Monetary Policy Report also said payrolled employees had fallen slightly in recent months and some contacts were delaying hiring. Bank of England agents' summary Monetary Policy Report
The British Chambers of Commerce said recruitment challenges were still stalling hiring and that the cost stack for SMEs had risen materially over the past decade. BCC release
By the numbers
- 707,000 - UK vacancies in May to July 2026, the lowest outside the pandemic since late 2014
- 95,000 - vacancies at firms with 1 to 9 employees, after an 8,000 quarterly fall
- 2.5 - unemployed people per vacancy in April to June 2026
Yes, but: A lower vacancy count signals softer hiring, but it does not by itself prove a recession; the ONS and Bank of England context points to gradual labour-market loosening.
What's next: The ONS will continue to publish monthly vacancies data, which will show whether the slowdown broadens beyond small firms.