People starting new jobs at lowest level in five years

The number of people starting new jobs has fallen to its lowest level in five years, according to new figures, as the number of vacancies continues to fall.

The Office for National Statistics (ONS) said that while the labour market remained "broadly stable", some areas showed signs of weakening.

Liz McKeown, the ONS's director of economic statistics, said the further drop in job vacancies suggested that "firms are becoming more cautious about taking on new staff".

The unemployment rate fell slightly to 4.9% in the three months to April, from 5% in the three months to March.

Regular pay - which excludes bonuses - grew at an annual rate of 3.4% in the three months to April, which was unchanged from the three months to March.

It means that average earnings are rising slightly faster than prices.

However, McKeown said regular wage growth in the private sector was rising at its lowest rate in five and a half years.

The figures come ahead of the Bank of England's decision on interest rates later on Thursday. Analysts broadly expect the Bank to hold its key rate at 3.75%.

Ben Caswell, a senior economist at the National Institute of Economic and Social Research, said the data pointed to a "gradual easing in the labour market".

"Alongside yesterday's softer inflation figures and the tentative agreement to reopen the Strait of Hormuz, this gives the Bank of England the final green light to vote for a hold this afternoon."