S&P Global PMI shows firms cut staff for a 24th consecutive month, marking the longest UK employment slump since the early 2000s and exceeding the post-GFC downturn. Signs of easing: services-sector layoffs fell to a near one-year low, and official unemployment remains well below post-GFC levels. The readings complicate the government's position ahead of this month's budget. Energy shocks and potential AI-related reductions in labour demand could further suppress hiring. Since the Labour governm

S&P Global PMI shows firms cut staff for a 24th consecutive month, marking the longest UK employment slump since the early 2000s and exceeding the post-GFC downturn. Signs of easing: services-sector layoffs fell to a near one-year low, and official unemployment remains well below post-GFC levels. The readings complicate the government's position ahead of this month's budget. Energy shocks and potential AI-related reductions in labour demand could further suppress hiring. Since the Labour government returned in 2024 and raised payroll taxes and the minimum wage, firms have been trimming headcount. Tim Moore, head of economics at S&P Global Market Intelligence, said weak demand and rising inflation have weakened firms' activity expectations over the year ahead, though hiring demand has been stronger than expected and appears to have helped the labour market edge out of the slump in recent months.