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Data Centres: Boom and Backlash
22OCT

UK vacancies rise for the first time

2 min read
16:40UTC

The Office for National Statistics recorded 712,000 vacancies for April to June, the first quarterly rise this beat has tracked, with no breakdown by AI exposure.

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Key takeaway

British vacancies rose for the first time this year, and no official figure can say why.

UK vacancies rose to 712,000 for April to June, up from 705,000, in the labour market bulletin the Office for National Statistics published on Tuesday 21 July⁠1. That is the first quarterly increase since the decline this beat has tracked began. The 705,000 reading had taken vacancies below their pre-pandemic baseline for the first time, and June's bulletin recorded a five-year low.

The rest of the release moves the same way. Payrolled employees remain down 85,000 on the year, a far smaller fall than the 210,000 recorded in May. Real regular pay grew 0.3% on a CPIH basis, up from 0.1%. CPIH is the inflation measure that includes owner-occupier housing costs. Unemployment held at 4.9%.

Nothing in the bulletin mentions AI, automation or technology. The ONS still runs no AI breakdown, which leaves the agency measuring Britain's labour market unable to say whether the improvement it has just recorded happened in the roles most exposed to the technology or in the roles least exposed to it. Every ONS release on this beat since May has moved against workers. This one did not. Two more quarters like it would be needed before anyone could call the decline over.

Deep Analysis

In plain English

Every quarter, the UK's Office for National Statistics counts how many job vacancies employers have open. That number just rose for the first time in this run of data, to 712,000 from 705,000. It is a small increase after a long run of falls, and economists are divided on whether it means hiring is finally picking up, or whether it is just a small bounce after the number had fallen unusually low. Meanwhile, the number of people actually on company payrolls kept falling.

Deep Analysis
Root Causes

The rise follows two consecutive ONS bulletins recording five-year lows in May and June, so the July uptick is measured against an unusually depressed base rather than a strong absolute level; 712,000 remains below the 2022 peak of over 1.3 million.

Seasonal hospitality and retail recruitment ahead of the summer period is a recurring driver of July vacancy counts specifically, a pattern the ONS bulletin does not flag as distinct from a genuine structural turn.

What could happen next?
  • Meaning

    UK vacancies rising to 712,000 is the first quarterly increase this ONS series has tracked, but it follows two consecutive five-year lows, making it a rebound from a trough rather than a return to 2022 levels.

  • Consequence

    Payrolled employment fell 85,000 year-on-year even as vacancies rose, showing employers may be advertising roles without net headcount growth.

First Reported In

Update #18 · SAP freezes R&D headcount as others deny AI

Office for National Statistics· 27 Jul 2026
Read original →
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.