Both job vacancies and overall unemployment levels have fallen, according to the latest ONS figures announced this morning.
Data released by the Office for National Statistics showed vacancies fell by 21,000 in the three months to September to 691,000, with small firms citing labour costs as a factor in scaling back hiring.
The figure represents the lowest level in more than five years, while the largest vacancy decrease came in the construction industry.
However, the unemployment rate dropped from 4.9% to 4.7% over the same period.
The Times reports a measure of average weekly earnings, excluding bonuses, rose from 3.6% to 3.7%.
Analysts had reportedly expected both the unemployment rate and average weekly earnings measures to remain unchanged.
ONS Deputy Director of labour market statistics, David Freeman, said: "While the labour market remains broadly flat in 2026, data from the latest quarter shows the employment rate edging up and a small drop in unemployment.
"The number of workers on payroll remains slightly down over the same period, though data for the most recent month suggests that might be starting to level off.
"The number of vacancies has seen its largest fall since the start of the year, concentrated mainly within smaller businesses, which cite increased labour costs as a key factor."
FSTE100
The UK's flagship share index, the FTSE 100, was down 93 points at 10,726 shortly after opening this morning.
Brent crude oil futures were up 1%, sitting at $110.65 a barrel this morning.
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