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FTSE 100 Falls 0.6% as UK Vacancies Hit Lowest Since 2014
Why is the FTSE 100 down today?
FTSE 100 (UKX) fell about 0.6% to around 10,700 on Tuesday as UK job vacancies dropped to their lowest since 2014 and wage growth slowed to 3.7%, despite unemployment unexpectedly falling to 4.7%.
Key numbers
| Unemployment rate (Jun–Aug) | 4.7%from 4.9% |
|---|---|
| Job vacancies (Jul–Sep) | 691K-21K vs Apr–Jun |
| Total pay growth | 3.7%from 3.9% |
| Regular pay growth | 3.7%from 3.6% |
| Payrolled employees (Sep) | +13K-66K vs a year earlier |
| FTSE 100 | ~10,700-0.6% intraday |
What happened
FTSE 100 (UKX) fell about 0.6% to around 10,700 on Tuesday as UK job vacancies dropped to their lowest since 2014 and wage growth slowed to 3.7%, despite unemployment unexpectedly falling to 4.7%. Unemployment, the share of people without a job who are looking for one, came in better than economists expected. Job openings (vacancies) dropped to 691,000, the fewest outside the pandemic since 2014. Pay growth including bonuses slowed to 3.7%, a near six-year low. French unrest and US-Iran tensions also weighed on shares.
Why it matters
The FTSE 100 slipped on a jobs report that sent mixed signals about the UK economy. Fewer job openings and slower pay growth suggest employers are cautious, which can mean less spending by households. The Bank of England is widely expected to raise its interest rate from 3.75% to 4% on 5 November, and this data adds to what it must weigh. Higher rates make borrowing costlier for families and firms.
Who this affects
- MarketmixedLow impact
- UK shares dipped; investors weigh cooling jobs against rate-hike odds.
- CompanybearishLow impact
- FTSE 100 shareholders saw a modest dip, not a sell-off.
- CompetitorsbearishLow impact
- Other European shares also fell, hit by French unrest.
- IndustrybearishMedium impact
- Smaller UK employers, facing higher labour costs, are hiring less.
FTSE 100 vs DAX, CAC 40
| FTSE 100UKX | ~10,700 | -0.6% |
|---|---|---|
| DAXDAX | — | — |
| CAC 40PX1 | — | — |
As of 2026-10-20
How we got here
Reuters poll: 54 of 63 economists expect Bank of England to raise rates to 4%.
ONS reports unemployment at 4.7% and vacancies at 691,000, lowest outside pandemic since 2014.
FTSE 100 trades about 0.6% lower near 10,700 as French unrest also weighs.
What to watch
- UK consumer price inflation data, seen as the next guide for interest-rate expectations2026-10-21
- Bank of England rate decision; economists expect a rise from 3.75% to 4%2026-11-05
Educational content only. Not investment advice.
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