UK unemployment falls to its lowest in a year but job vacancies drop below 700,000
Summary
UK unemployment fell to its lowest in a year but vacancies slid further, the Evening Standard and The Independent reported on Tuesday 20 October, and Sky News said the unemployment rate has fallen to 4.7%, in a set of official figures that will support the case for a Bank of England interest rate hike next month. Job vacancies have fallen below 700,000 for the first time in over five years as the UK labour market continued to show signs of weakening, City A.M. reported, and the Evening Standard and The Independent reported that shrinking vacancies are a 'bitter blow' to jobseekers, the number of vacancies having seen its biggest decline since the start of the year. According to The Guardian, early estimates for July to September 2026 suggest a decrease of 21,000 (2.9%) vacancies to 691,000 compared with April to June 2026, the first time the total has been below 700,000 since February to April 2021, with the largest industry decrease in construction, down 7,000 vacancies. The ONS's data also showed a boost for average wage growth across the UK workforce, according to the Evening Standard and The Independent, while The Guardian reported that regular pay growth rose in the last quarter but that, once bonuses are accounted for, wage growth slowed, and the Financial Times said the snapshot of the labour market comes ahead of chancellor John Healey's high-stakes Budget next week.
Latest: UK unemployment fell to its lowest in a year but vacancies slid further, the Evening Standard and The Independent reported, Sky News putting the unemployment rate at 4.7%, with job vacancies below 700,000 for the first time in over five years, according to City A.M., and The Guardian citing early estimates of 691,000 vacancies for July to September 2026 and a rise in regular pay growth in the last quarter.
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How it unfolded
Tuesday 20 October
UK unemployment fell to its lowest in a year but vacancies slid further, the Evening Standard and The Independent reported, Sky News putting the unemployment rate at 4.7%, with job vacancies below 700,000 for the first time in over five years, according to City A.M., and The Guardian citing early estimates of 691,000 vacancies for July to September 2026 and a rise in regular pay growth in the last quarter.
- 04:40The IndependentUK’s jobless rate falls but shrinking vacancies a ‘bitter blow’ to jobseekers
- 04:40Evening StandardUK’s jobless rate falls but shrinking vacancies a ‘bitter blow’ to jobseekers
- 03:02The IndependentUK unemployment falls to lowest in a year - but vacancies drop to five-year low to underline jobs challenge
- 02:51Financial TimesUK job vacancies slide over the summer
- 02:30The IndependentUK unemployment falls to lowest in a year but vacancies slide further
- 02:29Evening StandardUK unemployment falls to lowest in a year but vacancies slide further
- 02:22The GuardianUK unemployment rate falls in pre-budget boost, but firms keep cutting vacancies – business live
- 02:21City A.M.Job vacancies fall below 700,000 for first time in over five years
- 00:31Sky NewsSurprise dip in jobless rate supports interest rate hike