UK work boom is on the wane

Vacancies fall by 23,000 as Brexit looms

BRITAIN’S booming jobs market is showing early signs of cooling down, say experts.

The number of people in work rose by 31,000 to 32.8 million in the three months to July, the Office for National Statistics said.

But the growth was less than analysts’ forecasts of a 55,000 rise.

Samuel Tombs, of economic research consultancy Pantheon Macroeconomics, pointed out: “Employee numbers rose by a trivial 6,000, with the self-employed and workers in government-supported training programmes accounting for the remainder of the overall increase.”

Job vacancies also fell, dropping by another 23,000 to 812,000, which is the lowest level since November 2017.

David Freeman, head of labour market statistics at the ONS, said: “Vacancies continue to fall back from recent record highs, with much of this coming from small businesses.”

Tej Parikh, chief economist at the Institute of Directors, said: “At a testing time, the labour market is surpassing expectations, though there are early signs the jobs boom could be cooling down.”

On a positive note, the number of people out of work dropped 11,000 to 1.29 million in the three months to July, as the rate of unemployment stayed flat at 3.8 per cent. Average earnings, including bonuses, had the fastest rate of growth since May 2008 as they increased by four per cent compared to 3.8 per cent the previous month. The ONS said in real terms – after adjusting for inflation – total pay is estimated to have increased by 2.1 per cent compared to a year earlier. Mims Davies, Minister for Employment, said: “Today’s positive figures again show a thriving, diverse and resilient labour market to be proud of, and we are in great shape for Brexit.”