JOB vacancies in the UK have fallen to their lowest level in nearly four years, indicating weakening demand for workers amid rising employment costs.

The number of vacancies dropped to 781,000 in the first quarter of the year, according to the Office for National Statistics (ONS). At the same time, the number of people on company payrolls fell by 78,000 in March, with figures for February also revised down.

While average pay continued to grow—up 5.9% over the year—analysts warn that recent increases in National Insurance Contributions and the National Minimum Wage, introduced this month, could put pressure on future wage growth.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The looming hike in employers’ taxes in April is very likely to have persuaded employers to hold back on hiring. Pausing recruitment is the simplest lever for businesses to pull when they want to slow things down. It’s far cheaper and less damaging than redundancies.”

Employment Minister Alison McGovern welcomed the continued rise in real wages, saying April’s changes would “boost people’s payslips and improve living standards.”

However, the UK employment rate for 16 to 64-year-olds remains at 75.1%, still below Labour’s target of 80%. The unemployment rate stood unchanged at 4.4%.

The ONS cautioned that its jobs data should be treated carefully due to low response rates to its labour market survey.

According to historical data, UK job vacancies had climbed steadily from 730,000 in early 2015 to a peak of 1.3 million in mid-2022. The latest figures mark the first time vacancies have fallen below pre-pandemic levels since mid-2021.

Despite strong wage growth, some economists believe the trend may not last. Yael Selfin, chief economist at KPMG UK, warned: “The short-term impact of the rise in labour costs, which came into effect in April, will likely put downward pressure on pay in the coming months.”

Recruitment firm Manpower said wider market challenges are also having an impact. “We’re seeing much broader scale cutbacks than we’d previously anticipated, as higher costs coincide with Trump-led tariffs and British Steel negotiations,” said Anna Spaul, market intelligence director at ManpowerGroup. “It’s all adding to a greater sense of uncertainty for businesses.”

The Bank of England now faces a dilemma ahead of its May interest rate-setting meeting. Wage growth could delay cuts to interest rates, which currently stand at 4.5%. However, global tariffs and slowing employment may push the Bank to consider action to stimulate the economy.

A CALL to convert a former pigsty and a Pembrokeshire farm outbuilding into holiday lets providing accommodation “to meet the needs of the modern tourist” has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Mr and Mrs Morgan of Fenton Home Farm, near Crundale, Haverfordwest sought permission for farm diversification to create two additional holiday cottages, with four units already in operation, with a replacement pigsty and caravan.

A supporting statement through agent Hayston Developments & Planning Ltd said: “The proposed additional holiday units are situated within a complex that currently has planning permission for four holiday units, namely Garden Cottage, Blueberry Cottage, Cowslip Cottage and Meadow View Cottage. The site is accessed off an existing track to Fenton Home Farm from the minor county road that runs between Crundale and Wiston.”

It added: “This is a full application to change the use of two stone barns to self-catering holiday units (partly in retrospect).  No extensions are proposed other than cosmetic improvements. The main house, Fenton Home Farm, has operated four holiday lets for many years, as well as long term lets. As such the proposal is intended to extend and complement the existing holiday letting business.”

The statement says the first unit proposed was” a simple stone barn /pigsty with corrugated metal roof,” now renovated to afford comfortable living spaces inside; the second unit a stone barn, currently open to the elements and without a roof.

“This application makes effective and efficient use of existing buildings that is no longer required for agricultural storage purposes.  Making use of existing building reduces the need for further development in the countryside to the benefit of the local environment.  The units will provide holiday accommodation to meet the needs of the modern tourist.  The social benefits of providing holiday accommodation for visitors to Pembrokeshire is combined with the economic advantages of supplementing the holiday business income from Fenton Home Farm.”

An officer report recommending approval said: “The additional two holiday lets would be seen in context with the farm complex and converted outbuildings and is therefore considered to be of a scale and nature compatible with the location in compliance with [policy].

It says the former pigsty building “would not result in any overlooking or loss of privacy to the occupants of the main farmhouse or the converted outbuildings,” and the second let “would not result in a detrimental impact on residential amenity,” and the scale and design of the building “would be in keeping with the character of the site and farm complex”.

The application was conditionally approved by county planners.

PASC warns tourism sector could buckle under 182-day rule

HOLIDAY let owners across Pembrokeshire and the wider Welsh tourism industry say they are being pushed to breaking point by “brutal” tax changes that could cost thousands of jobs, force businesses to close, and lead to mental health crises among struggling operators.

The Professional Association of Self Caterers (PASC UK) says Welsh Government reforms introduced in 2023—intended to free up housing stock for local people—are having unintended and damaging consequences.

Under the new system, self-catering properties must be made available to let for at least 252 days a year and actually let for 182 days in order to qualify for business rates. Failing that, they are classed as second homes and liable for full council tax—often with steep premiums of up to 300% applied by local authorities.

The Herald understands that many operators, particularly in rural Pembrokeshire and west Wales, are simply unable to meet those targets during the quieter winter months, and are now receiving council tax bills running into tens of thousands of pounds.

One such case, cited by PASC, involved a farming family—previously encouraged by Welsh Government policy to diversify into tourism—who were hit with a £37,000 bill after falling short of the 182-day threshold.

Nicky Williamson, chair of PASC Wales, said: “Without this bed stock, we simply won’t have the capacity to house tourists. And if the tourists stop coming, the pubs, the cafés, the shops—everyone suffers. This is a domino effect that could be catastrophic for our communities.”

She added: “The mental health strain is immense. Operators are telling us they’re lying awake at night worrying about unexpected council tax demands. The uncertainty is brutal.”

A recent PASC survey found that 94% of respondents reported increased stress levels, with 60% saying they did not expect to meet the 182-day requirement this year.

DISCOUNTS, PANIC AND EMPTY HOMES

Karen Jones, who operates a holiday cottage business in Conwy county, said she and her husband had resorted to offering 20% discounts during February and March to lure back regulars. “If a booking cancels, panic sets in. We delay maintenance work, we scramble to fill gaps—it’s unsustainable.”

Frankie Hobro, who owns Anglesey Sea Zoo, said visitor numbers had fallen more than 20% since 2023. She directly linked the drop to the 182-day rule and fears the knock-on effects could be devastating.

“We’re seeing huge numbers of empty homes up for sale—but they’re not being bought by local families. They’re being snapped up by corporate buyers who can afford to keep running them commercially. That doesn’t help communities—it does the opposite.”

The closure of Oakwood Theme Park in Pembrokeshire last month has already sent shockwaves through the sector, and Hobro warned that more businesses could follow unless action is taken. “We’re sleepwalking into a tourism crisis,” she said.

‘TOO FAR, TOO FAST’

William Matthews, who runs Oyster Holiday Cottages in north Wales, told The Herald: “We understand the principle—these homes shouldn’t just sit empty all year. But the bar has been set too high, too fast. There needs to be more flexibility.”

Matthews said his agency had always tried to extend the season into the so-called ‘shoulder months’, but the weather and school term patterns often made it impossible to reach 182 days of bookings. “This rule may have tipped the balance too far,” he warned.

BALANCING HOMES AND JOBS

Welsh language campaign group Cymdeithas yr Iaith has supported the changes, arguing they help reduce the dominance of second homes and rebalance the housing market. Spokesperson Jeff Smith said: “We need to prioritise local people who are being priced out of their own communities. This policy helps make housing more accessible.”

The Welsh Government defended the move, saying: “We recognise the importance of tourism to the Welsh economy, but must balance that with the needs of our communities. Everyone has the right to a decent, affordable home.

“Our package of measures is designed to ensure that second home owners and holiday let operators are contributing fairly to local services and infrastructure.”

Figures show around 159,000 people are currently employed in tourism across Wales, many in coastal and rural communities like Pembrokeshire. PASC has warned that without a rethink, a significant proportion of those jobs could be at risk in the coming years.