Unemployment drops to 4.9% but job vacancies plummet again to lowest level in 5 years

UNEMPLOYMENT has come down slightly – but job vacancies have plummeted again to the lowest level in five years. Britain’s jobless rate hit 4.9% in the three months to April, official figures reveal. This is down from 5% in the three months to March, and lower than experts had predicted. Wage growth overall remained unchanged at 3.4% in the three months to April, the Office for National Statistics (ONS) said. But the number of job vacancies dropped again, falling by 19,000 between March and May in a major blow to jobseekers. Vacancies dipped to a total of 707,000 in the three months to May, which is the lowest since April 2021. Read more in money ONS director of economic statistics Liz McKeown said: “Payroll numbers continued to fall over this period, with new recruits at their lowest level in five years. “Overall employment was little changed, with some signs of workers moving into self-employment. “Vacancies also continued to fall, further suggesting that firms are becoming more cautious about taking on new staff.” She said the largest drop in job openings for the three months to April was in professional services. Most read in Money Responding to the new figures, Work and Pensions Secretary Pat McFadden said: “This month’s figures show that there are 400,000 more people in work than this time last year, but we know ongoing instability in the Middle East is causing uncertainty in our labour market. “We have the right economic plan for growth and stability in a volatile world – and we are taking action to create opportunity and make sure that no one is left behind. “We are pushing ahead with the biggest youth employment reforms in a generation to create almost a million opportunities for young people, boosting skills through our Youth Guarantee backed by a £2.5 billion investment and supporting 300,000 disabled people through our Connect to Work programme to futureproof our workforce to help more people into work.” Meanwhile, separate figures revealed earlier this month that the number of households in which no adults have ever worked has hit a fresh high. There were 298,000 households where at least one adult is of working age but nobody has ever been employed – a rise of 40,000 since last year, according to the ONS. What it means for you The unemployment rate measures the percentage of people over the age of 16 who aren’t working but are available and actively looking for work. A high unemployment rate is bad news for households and the economy, and it can be a sign of a weakening Labour market. High levels of joblessness can increase the number of people relying on benefits, which are paid for by taxpayers. It’s will come as a slight bit of relief for households and the Government that the unemployment rate has dipped. However, the number of vacancies is continuing to plummet, which is bad news for anyone looking for work as it means there is higher competition for roles. It’s also a bad sign for the UK economy, as it means fewer companies are hiring. The latest figures also come hours ahead of the Bank of England’s decision on interest rates later today. However, the slight drop is unlikely to have an impact on policymakers’ decision, and the bank is still tipped to keep interest rates unchanged at 3.75%.