UK private-sector jobs fall for 12th straight month as public sector expands, PMI shows slower growth

Britain's private sector has shed jobs for the 12th consecutive month, the longest run since the pandemic, according to the latest S&P Global PMI data. The survey covering three months to September found around 50,000 private-sector roles were cut as firms faced higher costs and cautious demand. The downturn comes as the public sector continues to expand under Labour, with about 75,000 more public-sector positions added since the party took power, reaching a level not seen since 2011. Excluding the Covid period of 2020-2021, that streak marks the longest decline in private-sector employment outside the financial crisis era.

Separately, the PMI indicated private-sector activity growth slowed to its weakest in four months, with a September reading of 51.0, down from 53.5 in August. A score above 50 signals expansion, while the cooling pace underscores a slowing economy. Chris Williamson of S&P Global Market Intelligence said the data showed a "litany of worrying news" including weakening growth, slumping overseas trade, worsening business confidence and further steep job losses, with growth now "almost stalling" and "alarm bells should be ringing that the economy is faltering."

Another report from S&P Global's ratings arm offered a more nuanced view, upgrading the UK's growth outlook for the year from 0.9% to 1.2% on the strength of a front-loaded export performance earlier in the year ahead of tariffs imposed by the Trump administration. The revision reflected a brighter start to the year rather than a sustained improvement in underlying momentum.

Separately, Eli Lilly chief executive David Ricks warned the UK could miss out on investment in new medicines, saying, "I don't think they will see much investment" if current conditions persist, highlighting concerns among corporate leaders about policy costs and access to innovation.