LONDON, May 19 (Reuters) – Britain’s employers reined in their hiring in April, according to data published on Tuesday which added to other signs of the impact of the Iran war on the economy.
Early payroll data from the tax office – which are prone to revision, especially around the start of the tax year in April – showed a heavy fall of 100,000 in the month from March.
The Office for National Statistics said the fall was the biggest since May 2020, at the start of the COVID-19 pandemic, but stressed that the figures were likely to be revised.
Vacancies fell to 705,000 in the three months to April, down from 712,000 in the first quarter of 2026 and the lowest number since the three months to February 2021.
Tuesday’s data also showed growth in British wages, excluding bonuses, stood at 3.4% in the first three months of 2026 compared with the same period last year, in line with the median estimate from a Reuters poll of economists.
The Bank of England has been monitoring wage growth closely as it tries to assess the level of inflation pressure in the economy.
A surge in energy prices since the start of the Iran war has added a new inflation concern for the central bank. However, several BoE policymakers say they believe the wage growth slowdown since early 2025 is likely to continue due to the war’s impact on hiring by employers and on the broader economy.
(Writing by William Schomberg; Editing by Sarah Young and Andy Bruce)
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