People starting new jobs at lowest level in five years

People starting new jobs at lowest level in five years 31 minutes ago Share Save Add as preferred on Google Emer Moreau Business reporter Getty Images The number of people starting new jobs has fallen to its lowest level in five years, according to new figures, as the number of vacancies continues to fall. The Office for National Statistics (ONS) said that while the labour market remained "broadly stable", some areas showed signs of weakening. Liz McKeown, the ONS's director of economic statistics, said the further drop in job vacancies suggested that "firms are becoming more cautious about taking on new staff". The unemployment rate fell slightly to 4.9% in the three months to April, from 5% in the three months to March. The number of 'inflows', or new hires, was just under 540,000, in April, which is the lowest monthly figure since March 2021, the ONS said. McKeown said that there were "some signs of workers moving into self employment" against a backdrop of falling vacancies. The number of job vacancies in the March to May period fell to 707,000, the ONS said, the lowest level since February to April 2021. Professional services saw the largest fall in vacancies, but retail and hospitality also saw significant drops. Regular pay — which excludes bonuses — grew at an annual rate of 3.4% in the three months to April. That was unchanged from the three months to March and means that average earnings are still rising slightly faster than prices. However, McKeown said regular wage growth in the private sector was rising at its lowest rate in five and a half years. The figures come ahead of the Bank of England's decision on interest rates later on Thursday. Analysts broadly expect the Bank to hold its key rate at 3.75%. Ben Caswell, a senior economist at the National Institute of Economic and Social Research, said the data pointed to a "gradual easing in the labour market". "Alongside yesterday's softer inflation figures and the tentative agreement to reopen the Strait of Hormuz, this gives the Bank of England the final green light to vote for a hold this afternoon." Yael Selfin, chief economist at KPMG UK, said the labour market was not proving a major contributor to inflationary pressures, with private sector wage growth easing. "Against a weak economic backdrop, workers are increasingly reluctant to push for higher pay, reducing the likelihood of second-round effects feeding through from the labour market into wider cost pressures." Shazia Ejas, the Recruitment and Employment Confederation's director of campaigns, said: "Global pressures and domestic political uncertainty are making employers hesitant to commit to hiring although latest REC data shows temp hiring is faring better than permanent. "With the Gulf crisis resolution on the table, the government has an opportunity to kick off a new phase in hiring." The quality of ONS statistics has been criticised in recent years, with a review last year finding "deep seated" issues with the body. The L