Job openings have plunged by a fifth over the past year, signalling a rapidly cooling labour market that will boost hopes of interest rate cuts.

Jobseekers now face far less choice than in recent years following a sharp reversal of the post-pandemic boom in openings, data from Indeed shows.

The number of available roles on the online jobs platform has even dipped below its pre-Covid level for the first time since the end of lockdowns in spring 2021.

However, the weakening job market may be welcomed by weary mortgage holders.

The figures mark a significant turning point that could assuage fears among the Bank of England’s rate-setters that a tight labour market is fuelling persistent inflation.

Traders currently place a two in three chance that Threadneedle Street will embark on the first reduction in August to bring rates down from a 16-year-high of 5.25pc.

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