A plunge in job vacancies is set to bolster hopes for an interest rate cut as Bank of England officials prepare to meet this week.

The number of available roles slumped by nearly a fifth year-on-year in June to 852,701, the lowest level since March 2021, according to search site Adzuna.

It warned that a summer hiring lull has come early as vacancies fell month-on-month despite GDP growth in May.

Although it signals a cooling economy, the data will be welcome news for the Bank of England’s Monetary Policy Committee (MPC). Members are watching for signs that the jobs market is cooling before it announces the first interest rate cut since 2020.

Traders have priced in two 0.25 percentage point Bank Rate cuts this year, which will bring borrowing costs down from a 16-year high of 5.25pc to 4.75pc. 

However, ongoing wage pressures and high levels of services inflation mean investors are only betting on a 50pc chance of the first rate cut coming at the next MPC meeting this Thursday.

The Adzuna data shows that competition for roles hit the highest level since June 2021, with 1.95 jobseekers for every live vacancy, up from 1.88 in May and 1.45 a year earlier.

As labour supply rises, employers have become more secretive about wages than at any point since Adzuna started keeping records in 2016, with 52.3pc of roles listed without information on the salaries attached to them. 

This shows the power balance over wages has shifted from job applicants to employers.

Andrew Hunter, co-founder of Adzuna, said: “The positive economic growth that has been recorded in the first two quarters of the year has yet to filter through to hiring.”

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