The UK labor market is facing its longest downturn since the early 2000s

The British labor market is experiencing its longest period of decline since the early 2000s, Bloomberg writes, noting with reference to S&P data that layoffs in the country have continued for 24 months in a row.

“Staff cuts began after the Labor government returned to power in 2024 and increased payroll taxes and the minimum wage,” the publication said. Its authors saw a sign that the “recession has bottomed out” in the slowing pace of job losses in the services sector to its lowest level in almost a year.

In September, the UK Composite Purchasing Managers' Index (PMI) fell from 52.5 to 52, still above the 50-point line that separates growth from contraction. At the same time, sluggishness in the labor market continues, and demand in the economy is supported primarily by rising consumer spending and demand for technological services amid the desire of companies to introduce artificial intelligence tools.