New figures from the Office for National Statistics indicate that UK businesses are continuing to ease off on recruitment, with job vacancies declining by 63,000 between March and May.

While this doesn’t point to a full-blown jobs crisis, it’s a clear indication that the labour market is cooling. The unemployment rate has risen to 4.6% (up from 4.5%), marking the highest level seen in nearly four years.

What’s Behind the Shift?

Rising employment costs are a major contributor. From April, employers have been required to pay higher National Insurance contributions, and the national minimum wage has also increased. The data suggests that these developments are influencing how businesses manage their staffing decisions.

According to the ONS, some employers are opting not to replace staff when they leave, or are deferring recruitment altogether.

Although average wage growth slowed slightly to 5.2% between February and April, it still outpaces inflation, which rose to 3.5% in April. This implies that while wage pressure is easing, employers still need to navigate pay expectations carefully.

What Does This Mean for Your Business?

If recruitment is feeling more challenging or costly, you are not alone—these figures suggest a broader trend.

This may be a good opportunity to:

  • Review staff roles to ensure your team is focused on high-impact tasks. You may discover that some responsibilities can be restructured or streamlined to reduce time and costs.

  • Consider in-house training. With the right development, a current team member might be well-placed to step into a role you were considering hiring for externally.

  • Explore available support. Grants, training schemes, or wage subsidies may be accessible in your area to assist with workforce development and cost management.

If you’d like support reviewing your staffing strategy or payroll planning, do get in touch—we’d be happy to help.

See: https://www.bbc.co.uk/news/articles/cp92edelzero