Private Sector Employment Falls for Ninth Month in a Row – Guido Fawkes

Private Sector Employment Falls for Ninth Month in a Row

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The latest closely-watched S&P Global Flash PMI has worrying news for private sector employment. Down again…

Despite a “marginal upturn in business activity” from April’s tariff lows private sector employment is down for the ninth month in a row and the rate of the drop off is actually increasing. Businesses report that “squeezed margins” and “excess capacity” are forcing cutbacks. Employment Rights Bill coming up…

Chief Business Economist at S&P Global Market Chris Williamson said:

“The UK economy remained in a sluggish state at the end of the second quarter, according to the early PMI survey data. Although business conditions have continued to improve since April’s downturn, quelling recession fears, growth of business activity remains disappointingly lacklustre, indicative of second quarter GDP rising at only a 0.1% quarterly pace. Business confidence also remains in the doldrums compared to this time last year, losing ground again in June… Employment has hence continued to be cut as firms grapple with the combination of higher staffing costs, linked to last autumn’s Budget, lower demand and subdued confidence.”

Business activity expectations for the coming year are down from May’s six-month high. Downturns ahead of Reeves’ next budget will put the frighteners on in the Treasury…