UK job market weakens as employers cut more jobs than expected

The UKs weak labour market led employers to cut more jobs last month, with the data published ahead of the Bank of Englands latest interest rate decision on Thursday. The Office for National Statistics said on Tuesday that the number of employees on company payrolls fell by 26,000 in August, after a downwardly revised decline of 19,000 the previous month. That was worse than economists expectations of a 5,000 fall. Labour demand remained weak, with vacancies down 8,000 to a five-year low of 702,000. The unemployment rate held steady at 4.9 per cent in the three months to July, although the ONS warned the estimate was still affected by data collection quality issues. The figures suggest the UK remains stuck in what Bailey has called a low-hiring, low-firing economy. UK employers face greater uncertainty from the US-Iran conflict and Prime Minister Burnhams first Budget, due on October 28.