The number of job vacancies decreased again, falling to 841,000 in the July to September period, although the total remains above pre-pandemic levels.
Recruitment firms have been reporting a slowdown in the jobs market, which has been drawn out by a combination of sluggish economic growth and higher interest rates over the past two years.
James Reed, boss of consultancy Reed, told the BBC the jobs market was experiencing “a slow-motion car crash” as companies continue to lack the confidence to hire new workers.
Recruiters also said firms are holding off hiring as they consider the costs of Labour’s plans for enhanced workers’ rights and wait to see what Chancellor Rachel Reeves might announce in the Budget.
There is increasing speculation that the government will increase the amount of money companies pay in National Insurance – something the prime minister declined to rule this out in an interview with the BBC on Tuesday.
The ONS said the rate of people considered “economically inactive” – defined as those aged between 16 to 64 years old not in work or looking for a job – edged lower to 21.8%.
Concerns have been raised over worker shortages affecting the UK economy, and the inactivity rate among adults has remained at a persistently high level in recent years since it first surged during the pandemic.
