Vacancies fell to 707,000 during the period from May to July, according to the Office for National Statistics (ONS), with firms citing higher employment and operating costs as reasons for cutting back on recruitment.

The number of vacancies in the UK jobs market has fallen to its lowest level in more than five years (Image: PA Wire)

The East of England has the highest employment rate in the UK at 78.3pc – above the national average of 75.1pc.

But the Federation of Small Businesses (FSB) has warned that firms across the region are now “sounding the alarm” about the impact of rising costs and impending legislative changes.

In the second quarter of this year, 86pc of businesses in the East saw their costs increase while more than half had revenue fall, according to the FSB’s latest small business index survey.

It comes as energy costs have risen sharply since the Iran war began, and hikes to National Insurance and the minimum wage have made it more expensive to employ staff.

The FSB’s study found that around a quarter of businesses in the region now expect to shrink, scale back or close for good........

© Eastern Daily Press