The UK's dominant services sector has recorded two years of continuous job losses, new data indicates. Researchers at S&P Global stated that a fall in employment in September meant the sector has now experienced two consecutive years of job cuts.
Despite this, the sector has shown moderate growth amid intense trading disruption and high borrowing costs. The monthly purchasing managers' index (PMI) suggested that the decline in workforce numbers in September was the slowest since October 2025.
Employers reportedly did not replace voluntary leavers due to higher payroll costs and the deployment of AI. This data points to increasing risks for the jobs market, with the UK unemployment rate rising from around 4.2 per cent to 4.9 per cent over the last 24 months.
The PMI reading for September dropped to 52.1 from 52.5 the previous month, though it still indicated private sector activity expansion as it remained above the 50-figure threshold for neutrality.