Jobs Cut at Fastest Rate Since Financial Crisis21 Feb 2025 10:02
“Britain’s private sector companies cut jobs at the fastest pace outside the pandemic since the global financial crisis, a closely watched survey showed as Rachel Reeves scrambles to secure growth to balance the public finances.
The S&P Global Flash UK PMI showed the sharpest decline in private sector employment since November 2020 as bosses tried to offset the Chancellor’s £25bn hike in National Insurance contributions and the uplift to the minimum wage from April.
Chris Williamson, chief business economist at S&P Global, said: “One in three companies reporting lower staffing levels directly linked the reduction to policies announced in last October’s Budget.”
Overall, Britain’s private sector growth slowed slightly in February as wage pressures contributed to the fastest increase in average cost burdens for 21 months.
Mr Williamson added: “Firms’ costs are meanwhile rising at a rate not witnessed since May 2023, the rate of inflation having now accelerated for four straight months, putting further upward pressure on selling prices for both goods and services.
“The survey data point to a further rise in inflation beyond the latest uptick to 3pc.”
Labour - the party of business ? 🤔🙄