New figures from the Office for National Statistics (ONS) show that UK businesses are easing off on recruitment, with job vacancies dropping by 63,000 between March and May.
Unemployment has crept up to 4.6%, its highest level in nearly four years—a clear sign the labour market is starting to cool.
💼 What’s Behind the Slowdown?
One key factor: rising employment costs.
🔺 From April, employers have faced higher National Insurance contributions and an increase in the National Minimum Wage.
Many businesses are responding by:
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Not replacing staff when they leave
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Holding off on new hires
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Tightening budgets around pay and recruitment
Wage growth has also slowed slightly to 5.2%, but it's still outpacing inflation (which was 3.5% in April)—so pay expectations remain a pressure point.
🤔 What Could This Mean for Your Business?
If hiring is starting to feel more difficult—or expensive—you’re not alone. But there are practical ways to manage the challenge:
✅ Review roles and responsibilities
Make sure your team is focused on what really moves the needle. You may be able to redistribute tasks or streamline certain areas to improve efficiency.
✅ Upskill from within
In-house training can be a cost-effective alternative to hiring. A current team member might be ready to grow into a new role with the right support.
✅ Look into local support
There may be grants, training subsidies, or apprenticeship schemes in your area to help with staff development and reduce payroll strain.
👉 Read more on the BBC