Job vacancies in the UK have dropped to their lowest level in almost four years, according to the latest figures from the Office for National Statistics (ONS). The number of openings fell to 781,000 in the first quarter of 2025, suggesting that employer demand for staff is easing as employment costs continue to rise.
The ONS also reported a fall in the number of people on company payrolls. Payroll numbers declined by 78,000 in March, with a downward revision to February’s figures. Although average pay growth remains strong – with wages rising by 5.9% – economists warn that mounting costs could pressure future earnings.
Several recent changes have contributed to this shift, including an increase in employer National Insurance Contributions and this month’s rise in the National Minimum Wage. While beneficial for some workers, these measures may discourage hiring or limit pay growth in the coming months.
Despite the drop in job vacancies and payroll employment, the UK’s unemployment rate held steady at 4.4% – broadly in line with the previous three months.
The employment rate for 16 to 64-year-olds stood at 75.1%, still short of Labour’s target of 80%.
However, the ONS advised caution in interpreting these figures, citing low response rates to its Labour Force Survey, which forms the basis of many employment estimates.
While wages have risen, the outlook remains uncertain as higher costs affect employer decisions.
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