UK unemployment falls to 4.7% as job vacancies hit five-year low

The UK’s unemployment rate has fallen to 4.7%, official figures released on Tuesday show, defying expectations of a rise. The Office for National Statistics said the rate for the three months to August was down from 4.9% in the previous quarter — its lowest level since July last year. Economists had expected it to rise to 5%, according to PA News.

The number of job vacancies fell to 691,000 between July and September, The Sun reports — the first time the figure has dropped below 700,000 since April 2021 and the lowest level in five years. The ONS said vacancies saw their largest fall since the start of the year, concentrated in smaller businesses citing increased labour costs.

Regular wage growth held at 3.7%, while total pay including bonuses has eased to its lowest rate in nearly six years.

ONS deputy director of labour market statistics David Freeman said: “While the labour market remains broadly flat in 2026, data from the latest quarter shows the employment rate edging up and a small drop in unemployment.” He added that the number of workers on payroll “remains slightly down” over the same period, though recent data suggests that fall “might be starting to level off”.

The figures land a week before Chancellor John Healey’s Budget on 28 October, with the Bank of England widely tipped to raise interest rates early next month, PA reports.