[UK] Fastest-paced job cuts in four years as wage growth stalls

In the UK, Bank of England data has revealed that organisations have slashed their workforce at the most rapid rate in nearly four years, GB News reports.

The central bank's Decision Maker Panel survey polls CFOs from 2,000 firms. It found that employment had contracted by 0.5 per cent in the three months to August compared with the previous year.

This is reportedly the steepest decline since autumn 2021, as businesses wrangle rising costs from spring budget measures.

Increases to national insurance contributions and minimum wage requirements have weighed heavily on employers.

The intensification of Donald Trump's global trade dramas from early April has also impacted confidence, particularly for firms exporting to the US.

Things look unlikely to change in the foreseeable future, with firms reportedly planning to reduce their workforce by another 0.5 per cent over the next twelve months.

It is the most pessimistic employment forecast since October 2020, when the UK was coping with pandemic restrictions.

Wage prospects seem unlikely to help the nation’s workforce further.

Companies anticipate salary increases of just 3.6 per cent in the coming year. A dramatic reduction from the 4.6 per cent growth recorded over the past 12 months.

Source: GB News

In the UK, Bank of England data has revealed that organisations have slashed their workforce at the most rapid rate in nearly four years, GB News reports.

The central bank's Decision Maker Panel survey polls CFOs from 2,000 firms. It found that employment had contracted by 0.5 per cent in the three months to August compared with the previous year.

This is reportedly the steepest decline since autumn 2021, as businesses wrangle rising costs from spring budget measures.

Increases to national insurance contributions and minimum wage requirements have weighed heavily on employers.

The intensification of Donald Trump's global trade dramas from early April has also impacted confidence, particularly for firms exporting to the US.

Things look unlikely to change in the foreseeable future, with firms reportedly planning to reduce their workforce by another 0.5 per cent over the next twelve months.

It is the most pessimistic employment forecast since October 2020, when the UK was coping with pandemic restrictions.

Wage prospects seem unlikely to help the nation’s workforce further.

Companies anticipate salary increases of just 3.6 per cent in the coming year. A dramatic reduction from the 4.6 per cent growth recorded over the past 12 months.

Source: GB News