Office for National Statistics

UK job vacancies recorded their sharpest decline since the start of the year over the three months to September, falling by 21,000 to 691,000 and dropping to their lowest level in more than five years. The Office for National Statistics (ONS) attributed the drop primarily to small and medium-sized businesses scaling back recruitment, citing increased labour costs driven by rising energy prices, higher National Insurance contributions, and the minimum wage. The figures, the last major snapshot before Chancellor John Healey's first Budget next week, showed the unemployment rate unexpectedly fell to 4.7%, its lowest in over a year.

UK unemployment fell unexpectedly to 4.7% in the three months to August, down from 4.9%, according to Office for National Statistics figures released today, providing a brighter backdrop to the 28 October budget.