“These figures point to a fragile labour market, with soaring employment taxes and the economic turbulence sparked by the Iran war pushing some firms to limit recruitment and cut pay awards.
“While slowing pay growth suggests that any second-round inflation effects from the Iran-induced energy shock remain limited, it also means that the squeeze on people’s incomes will intensify.
“The continued fall in job vacancies is a stark warning that demand for staff is dissipating under the weight of sky-high staffing costs, more onerous regulation and heightened uncertainty.
“Job seekers will probably face more strain over the summer, with unemployment likely to edge noticeably higher as elevated cost pressures and weakening demand increasingly inhibits hiring — especially if uncertainty over future tax policy persists.
“These subdued figures likely shut the door on a July interest rate rise, by fuelling hope that a softening labour market can help restrict inflation by restraining pay awards and dampening demand across the economy.”
ENDS
Notes to editors:
Contact ICAEW media office:
About ICAEW
Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 211,600 members and students around the world. 81 of the top 100 global brands employ ICAEW Chartered Accountants.* 82% of FTSE 100 companies have an ICAEW member on their board.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor more than 11,500 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is working towards becoming net zero, demonstrating our commitment to tackle climate change and supporting the UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
* includes parent companies. Source: ICAEW member data March 2026, Interbrand, Best Global Brands 2025.
Further information
latest press releases
Contact us
Media relations
Our Media Relations team can be contacted for comment, opinion and information on issues affecting the accountancy profession, business and the wider economy.
Find out moreAbout ICAEW
Who we are
As a global professional body for chartered accountants, we ensure all our chartered accountants have the knowledge and values to help build local and global economies that are sustainable, accountable and fair.
Find out more