UK vacancies fall to 702,000, the lowest since 2014

Vacancies at a twelve-year low

Vacancies in the UK fell to 702,000 in June to August 2026, according to early estimates from the ONS. That is a decrease of 8,000, or 1.1%, compared with March to May 2026. The figure is the lowest outside the coronavirus pandemic period since August to October 2014, when there were 701,000 vacancies. For a household, the vacancy count is the clearest single gauge of how many openings are being advertised across the economy at any one time. At 702,000, the number of openings is below the level seen at any point in the decade before the pandemic, apart from that 2014 reading. The comparison matters because the labour market has absorbed a great deal since 2014, including a larger population and a bigger workforce, so a similar number of vacancies now represents a thinner market relative to the number of people looking for work.

The ONS notes that vacancy estimates have been broadly flat since the start of the year, down only 16,000 since January to March 2026. That flatness is important. It suggests the recent decline is not a sudden collapse but a slow drift, with the level of openings settling at a lower plateau. The ONS also says feedback from its Vacancy Survey continues to suggest smaller firms may not be recruiting because of increases in labour costs. That feedback points to a specific channel: for smaller employers, the cost of taking on a worker has risen, and the response has been to hold back on hiring rather than to cut existing staff. The vacancy figure is a stock of advertised openings, so it captures the demand side of the labour market. A twelve-year low outside the pandemic means that demand for new workers is weaker than at any point in recent memory, even though the total number of people in work remains high by historical standards.

What is happening to pay

Annual growth in average regular earnings excluding bonuses was 3.5% in May to July 2026. The ONS describes this as relatively stable over the past five three-month periods. Annual growth in total earnings including bonuses was 3.9%, down from 4.2% in the previous three-month period. The last time total pay growth was lower was September to November 2020, when it was 3.7%. The split between public and private sector pay is wide. Regular earnings growth was 6.3% in the public sector and 2.9% in the private sector. The ONS says public sector growth was affected by the timing of pay awards, which means the public sector figure reflects when increases were implemented rather than a permanent divergence in underlying pay pressures. For a household, the private sector figure of 2.9% is the more relevant guide to what a typical worker outside the public sector is seeing in their regular pay packet.

In real terms, using CPIH, annual growth was 0.6% for regular pay and 0.9% for total pay. Using CPI, it was 0.8% for regular pay and 1.1% for total pay. Real terms means pay growth after accounting for price inflation, so these figures show that average pay is still rising faster than prices, but only modestly. A real terms gain of 0.6% on regular pay using CPIH means that for every 100 pounds of regular pay, the purchasing power is rising by around 60 pence a year. That is a positive figure, but it is small. It means pay is just about beating prices. The gap between the CPIH and CPI measures reflects the different baskets of goods and services each index covers, with CPIH including an estimate for the costs of owning and occupying a home. Both measures point in the same direction: real pay growth is positive but thin, and the household experience is one of standing still or edging forward rather than a noticeable improvement in living standards.

Jobs, unemployment and the Claimant Count

The UK unemployment rate for people aged 16 and over was 4.9% in May to July 2026, up 0.2 percentage points on the year and largely unchanged on the quarter. The employment rate for people aged 16 to 64 was 75.1%, down 0.1 percentage points on the year. The economic inactivity rate for people aged 16 to 64 was 20.9%, down 0.1 percentage points on both the year and the quarter. Taken together, these three rates describe a labour market where the share of people in work has slipped slightly, the share looking for work has risen slightly, and the share neither working nor looking has edged down. The unemployment rate of 4.9% is the headline measure of joblessness, and the 0.2 percentage point rise on the year means that, relative to a year earlier, a slightly larger share of the workforce is without a job and actively seeking one.

Payrolled employees fell by 101,000, or 0.3%, between July 2025 and July 2026, and by 19,000, or 0.1%, between June and July 2026. The early estimate for August 2026 was 30.2 million payrolled employees, down 145,000, or 0.5%, on the year and down 26,000 on the month. The ONS notes that August figures are provisional. The UK Claimant Count for August 2026 increased on the month and the year to an estimated 1.692 million, and the latest month is provisional. Workforce jobs were 36.7 million in June 2026, down 48,000 on March 2026, with self-employment jobs down 43,000. Public sector employment was 6.21 million in June 2026, up 11,000 on March 2026 and up 33,000 on June 2025. For a household, the Claimant Count of 1.692 million is the count of people claiming unemployment related benefits, and its rise on both the month and the year is consistent with the softer picture from the vacancy and payroll data.

Why the three data sources disagree

The ONS publishes several measures of the labour market, and they do not always tell the same story. The Labour Force Survey (LFS) produces the unemployment, employment and inactivity rates. Workforce jobs measure the number of jobs in the economy, including self-employment, and stood at 36.7 million in June 2026. Payrolled employees come from Real Time Information (RTI) data collected through the tax system, and the early estimate for August 2026 was 30.2 million. The Claimant Count measures the number of people claiming unemployment related benefits, at an estimated 1.692 million in August 2026. Each measure covers a different concept. The LFS is a survey of households and captures people rather than jobs. Workforce jobs counts jobs, so one person with two jobs counts twice. RTI counts employees on payrolls, so it excludes the self-employed and anyone not paid through PAYE. The Claimant Count is an administrative count of benefit claimants, which depends on eligibility rules as well as labour market conditions.

The ONS says RTI currently provides the most reliable measure of employees, and advises using the Labour Force Survey alongside workforce jobs, the Claimant Count and RTI. That guidance matters for anyone trying to read the latest figures. The LFS has faced known challenges in recent years, and the ONS is pointing users towards a set of measures rather than a single number. For a household, the practical implication is that no single figure captures the whole labour market. The vacancy count of 702,000 describes demand for new workers. The payrolled employee count of 30.2 million describes how many people are on payrolls. The unemployment rate of 4.9% describes the share of the workforce without a job and looking for one. The Claimant Count of 1.692 million describes the number claiming benefits. Each is a different lens, and the ONS recommends using them together rather than in isolation.

What this feeds into next

The Bank of England was granted exceptional pre-release access to the bulletin at 10:00am on Monday 14 September 2026 for the Monetary Policy Committee meeting held that day. The bulletin was released publicly on 15 September 2026. Pre-release access means the Bank saw the labour market figures before they were published, so the data were available to the committee during its meeting. The figures include the vacancy count of 702,000, the regular pay growth of 3.5%, the total pay growth of 3.9%, the unemployment rate of 4.9%, and the payrolled employee estimate of 30.2 million. The Bank sets Bank Rate, and its decisions are informed by a range of data, of which the labour market is one part. The ONS bulletin provides the committee with the latest readings on vacancies, pay, employment, unemployment and inactivity.

The next release is 20 October 2026. That will provide the next set of labour market figures, including updated vacancy estimates, pay growth, and the unemployment rate. Between now and then, the picture described in this bulletin is one of vacancies at a twelve-year low outside the pandemic, pay growth that is positive in real terms but modest, an unemployment rate of 4.9%, and a payrolled employee count that has fallen on the year. For a household, the combination means a labour market where openings are harder to find than at any time since 2014, pay is just about keeping ahead of prices, and the number of people on payrolls has edged down. The ONS advises using RTI alongside the LFS, workforce jobs and the Claimant Count, and the next release on 20 October 2026 will show whether these trends have continued.

Source: ONS Labour market overview, UK: September 2026.

Related coverage on Kael Tripton: UK Labour Market Statistics: Employment, Unemployment and Vacancies, UK Job Vacancies Fall to 707000: What the Weakest Labour Market Since 2021 Means for Workers, Redundancy and Unemployment Insurance UK 2026: Income Protection If You Lose Your Job, UK Unemployment Set for Sharpest Rise in the G7: Your Statutory Redundancy and Universal Credit Rights, Yearly Pay Rise: UK Salary Guide.

Frequently asked questions

What is the latest UK vacancy figure?

Early estimates for June to August 2026 suggest vacancies decreased by 8,000, or 1.1%, to 702,000 compared with March to May 2026. Outside the coronavirus pandemic period, the last time there were 702,000 or fewer vacancies was August to October 2014, when there were 701,000.

What is happening to pay growth?

Annual growth in average regular earnings excluding bonuses was 3.5% in May to July 2026, relatively stable over the past five three-month periods. Annual growth in total earnings including bonuses was 3.9%, down from 4.2% in the previous three-month period. Regular earnings growth was 6.3% in the public sector and 2.9% in the private sector.

Is pay beating inflation?

In real terms using CPIH, annual growth was 0.6% for regular pay and 0.9% for total pay. Using CPI, it was 0.8% for regular pay and 1.1% for total pay. Both measures show pay rising faster than prices, but by a modest margin.

What is the unemployment rate?

The UK unemployment rate for people aged 16 and over was 4.9% in May to July 2026, up 0.2 percentage points on the year and largely unchanged on the quarter. The employment rate for people aged 16 to 64 was 75.1%, down 0.1 percentage points on the year.

How many people are on payrolls?

Payrolled employees fell by 101,000, or 0.3%, between July 2025 and July 2026. The early estimate for August 2026 was 30.2 million payrolled employees, down 145,000, or 0.5%, on the year and down 26,000 on the month. August figures are provisional.