Small firms cut back hiring as job vacancies sink to a five-year low despite unemployment falling to 4.7%

Vacancies fell by 21,000 to 691,000, the sharpest quarterly decline this year, with construction suffering the steepest losses. Employers point to higher National Insurance, minimum wage rises and energy costs that have climbed since the Iran war. Among those out of work, 715,000 are young people — a figure 54,000 higher than twelve months earlier. Work and Pensions Secretary Pat McFadden nonetheless hailed 'the resilience of our labour market'.

Markets now almost fully expect a Bank of England rate hike on November 5.

Adverts for 'starter' jobs have nearly halved in a decade, from 139,000 to 71,000.

Regular pay rose 3.7%, but only 0.8% after inflation is taken into account.