Key facts
- UK job vacancies decreased by 7,000 between April and June.
- The unemployment rate remained at 4.9% during the period.
- Pay growth, excluding bonuses, was 3.4%, below expectations.
- Smaller businesses were the main drivers of the decline in vacancies.
- Andy Burnham has begun his premiership with new cabinet appointments.
Andy Burnham's premiership has commenced with a downturn in the UK labor market, as job vacancies saw a decline of 7,000 between April and June, according to the Office for National Statistics (ONS). The most significant drops were observed in sectors such as science and professional activities. The unemployment rate held steady at 4.9%, while the number of payrolled employees experienced a marginal increase of 3,000 from April to May, though an estimate suggests a fall of 4,000 in July.
Pay growth, excluding bonuses, remained at 3.4%, and 4.3% including bonuses, both figures falling short of expectations. Liz McKeown, director of economic statistics at the ONS, noted that while vacancies decreased, the rate of decline was less pronounced than in previous periods. She attributed the fall, particularly in smaller businesses, to factors like labor and operating costs.
The previous government under Sir Keir Starmer faced scrutiny over job figures, with employers citing a £25 billion national insurance tax increase as a factor that stifled hiring and contributed to inflation. Burnham has sought to differentiate his approach, advocating for a more pro-business stance and prioritizing job creation through public procurement.
Upon taking office, Burnham made key cabinet appointments, including John Healey as Chancellor and Jonathan Reynolds as business secretary, who will also handle technology and science briefs. When questioned about potential welfare cuts to address public finances, Healey emphasized the importance of fiscal credibility for economic stability and national security. Burnham's initial address did not detail specific policies but indicated a forthcoming decade-long economic plan for the UK.