UK Firms Cut Jobs for 22nd Month as PMI Rebounds to 52.2
Updated
Updated · The Straits Times · Aug 5
UK Firms Cut Jobs for 22nd Month as PMI Rebounds to 52.2
1 articles · Updated · The Straits Times · Aug 5
Summary
Britain’s private sector cut headcount for a 22nd straight month in July, leaving the services job slump as long as the 2008-2009 financial-crisis downturn and the wider economy one month short.
S&P Global’s PMI said firms trimmed staff to cut costs and, in some cases, because AI investments reduced labor needs; businesses have also blamed higher payroll taxes and the minimum wage.
July still brought signs of stabilization: headcount fell at the slowest pace since October 2025, while the overall PMI rose to 52.2 from 49.3, returning the economy to growth after weak May and June.
Official data show unemployment remains well below post-crisis peaks, but the survey is likely to intensify scrutiny of the labor market under Labour as AI-driven white-collar job risks and geopolitical uncertainty weigh on hiring.