ECONOMIC shockwaves due to the US war on Iran are “only beginning to affect the labour market,” the TUC warned today as official figures revealed falling vacancies and stagnant wages.

New ONS data suggested job markets were holding steady in spring as the Bank of England resolved to maintain interest rates.

But falling vacancies and stagnant real wages seen in the most recent economic figures indicate jobs and living standards are at further risk, the TUC said.

The ONS found the unemployment rate fell again from 5.2 per cent to 4.9 per cent in the last three months, and the employment rate was slightly down to 75 per cent, from 75.1 per cent.

Redundancies went down by 13,000 to 113,000 this spring, according to the findings.

But the TUC pointed to continuing challenges, including a 138,000 fall in payrolled employees between April 2025 and April 2026, as well as youth unemployment standing at 14.5 per cent.

Youth inactivity over the first quarter of this year was up to 31.3 per cent.

TUC general secretary Paul Nowak said improvements in the jobs market from the start of this year have “offered workers and businesses some protection, but today’s figures suggest challenging months are ahead.

“Falling vacancies and stagnant real wages mean jobs and living standards are at further risk.

“While Donald Trump has declared an end to his illegal war in Iran, the economic shockwaves he unleashed are only beginning to ripple through to the labour market – and young people are among the most at risk.”

Mr Nowak added: “We must do more to address youth unemployment. The government’s jobs guarantee is an important start, but far more places are needed, and young people shouldn’t have to be stuck out of work for a year and a half before they can benefit.”

Ahead of its meeting today, he called on the Bank of England to cut interest rates to “boost investment and strengthen the economy.”

Instead, the Bank announced it would hold interest rates at 3.75 per cent after a deal between the US and Iran pushed oil prices down.

Unemployment in Scotland rose slightly in the last quarter, according to the ONS with rates for people aged 16 and over at 4.3 per cent between February and April this year.