The rate of UK unemployment remained unchanged at 4.9% in the three months to June, the Office for National Statistics [ONS] ahas announced.
It means that unemployment figures have remained at the same level since January this year.
Job vacancies also fell by 6,000 to 707,000 between May and July this year, and the number of employees on payroll fell by 78,000 (0.3%) in the year to June.
This brings the level to its lowest in more than five years, after it slumped earlier in the year.
The ONS said its survey found that small firms may not be recruiting because of increased labour costs and other business expenses.
The data also revealed that regular average wage growth in the UK’s private sector fell to 2.8% in the three months to June, the lowest level since the three months to October 2020.
But in some relief for workers, the UK’s average regular earnings growth rose to 3.5% in the three months to June.
ONS figures revealed it was 0.7% higher after taking Consumer Prices Index inflation into account.
Liz McKeown, ONS director of economic statistics, said: “The labour market picture is little changed overall, with some softening still evident.
“Employment, unemployment and inactivity rates have all remained steady, while the number of employees on payroll fell slightly in the latest quarter.
“Vacancies remain broadly flat, though a small fall in the latest period puts them at the lowest level in more than five years.”
Dr Bingsong Wang, Lecturer in Economics at the University of Sheffield, said Britain’s job market is still waiting to “catch up” with the economy.
Dr Wang said: “Unemployment remains close to 5%, while vacancies are hovering at around 710,000—well below their pre-pandemic level. Payrolled employment has also been broadly flat.
“This is not a jobs crisis, but neither is it a convincing recovery. The latest figures suggest that Britain’s jobs market may be finding a floor, but it has not yet found its feet.
