UK Labour Market Loses Momentum as Job Vacancies Dip Below Five-Year Low

The UK labour market has cooled down further in the second quarter of this year. The data released on Tuesday shows that job vacancies have decreased to 707,000 in the three months to July from 711,000 in the previous three months.

This is a sign that the economy may be losing momentum, which could impact employment numbers in the coming months. Despite this, private sector regular earnings rose by 2.8% in annual terms during the three months to June, which matches the Bank of England's forecast.

The unemployment rate remains at 4.9%, which is higher than expected. Economists believe that the labour market is still easing but only gradually now. The number of payrolled employees fell by 12,850 in July, marking a sixth straight month of decline.