Rising job losses and cooling wage growth pose a challenge for Rachel Reeves

ONS data shows job losses have been concentrated most in retail and hospitality, which as heavier users of part-time and flexible contracts, lower pay and seasonal work, are more exposed to the rising costs of employment. Photograph: Jack Taylor/Getty Images

Britain’s jobs market is in a 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.