UK sees record job vacancies as payrolls recover

Job vacancies are at a record high, with UK payrolls reaching levels seen before the global pandemic, underlining a strong job market. Over a million vacancies were seen in the three months up to August as the economy progressed further towards full reopening. Unemployment was down to 4.6% up to July and showed a trend of falling unemployment over the summer. This however, is offset by the fact the size of the overall labour market has fallen, meaning there could be significant labour shortages in the coming months as the size of the workforce may fail to meet demand from employers, which may lead to wage inflation. UK equities were mixed on the news, with the FTSE 100 negatively impacted by sterling rising on the strong jobs data, whilst the medium sized company index, the FTSE 250, rallied modestly. UK government debt fell as the Pound rose higher.