The UK labour market is cooling but this is a slowdown, not a collapse

The NICs rise, tariffs and weak consumer spending have hit firms but there are crumbs of comfort for the chancellor

• Business live – latest updates

• UK employers cut back on bonuses and hiring

Britain’s jobs market is in an challenging position. Job losses are rising, fewer employers are advertising for staff, and the resurgence of inflation is eroding the value of workers’ pay. For Rachel Reeves this is bad news.

The latest figures showing a decline in the number of employees on company payrolls in July, alongside a slowdown in annual wage growth in the three months to June, underscore the challenge facing the chancellor.