UK Job Vacancies Fall Below 700,000 to Five-Year Low as Wage Growth Slows

British job vacancies dropped below 700,000 for the first time since April 2021, the Office for National Statistics said, signaling a cooling labor market ahead of the Budget. Openings fell to 691,000 in the three months to September from 704,000 in the prior period, a decline of 21,000 — the largest quarterly fall since the start of the year. Wage growth also weakened. Total pay excluding bonuses rose 3.7% in the three months to August, the slowest pace since November 2020, down from 3.9%. The unemployment rate unexpectedly fell to 4.7% from 4.9%, its lowest since July 2025, while payrolls edged up 13,000 to 30.3 million. Economists attributed the hiring pullback to elevated employment costs — including a higher minimum wage and increased National Insurance contributions — and growing use of AI. Traders raised the odds of a Bank of England rate hike next month to 95%. Sterling rose 0.5% to $1.337, while the FTSE 100 fell 0.7%.