The UK private sector has experienced 22 consecutive months of employment cuts, according to researchers at S&P Global. This prolonged period of job losses has deepened across the services sector, even as new data suggests a boost to the UK economy's growth.
The overall purchasing managers’ index (PMI) score for the UK economy, a key indicator of business performance, registered 52.2 in July. This figure is above the 50-point neutrality mark, which indicates no change in activity.
S&P Global director Tim Moore noted that a rebound in activity and new business could not prevent a further decline in staffing numbers, marking a joint-record duration of falling employment in 30 years of data collection. Andrew Griffith, the shadow business secretary, described the figures as a “damning indictment of this government’s economic failure.”
Official data indicates that the unemployment rate has increased from 4.4 per cent to 4.9 per cent since Labour's election, meaning approximately 150,000 more people are out of work. This figure does not include individuals who are inactive, such as those in education, retirement, or not actively seeking employment.
Despite the ongoing job cuts, the rate of job losses in the latest month was the softest recorded since October 2025. Additionally, hundreds of firms surveyed reported that the increase in input prices was significantly lower than peaks seen in April, reaching a five-month low.