UK Jobs Market Weakens with 26,000 Payroll Drop and Five-Year Low in Vacancies

The UK's jobs market remains weak, with employers shedding more workers than expected in August. According to figures released by the Office for National Statistics (ONS), the number of employees on company payrolls fell by 26,000 last month, exceeding the forecasted drop of 5,000.

This marks a downwardly revised 19,000 fall from the previous month, leaving the UK stuck in what Bank of England Governor Andrew Bailey has called a 'low hire, low fire' economy. Job vacancies also fell by 8,000 to a fresh five-year low of 702,000.

The unemployment rate held steady at 4.9% in the three months through July, but the ONS cautioned that this estimate is still affected by a quality issue with data collection.