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Tino Arnall via flickr
UK firms reduced their employee count by 0.5% year-on-year from June to August, marking the largest decline in four years, as revealed by a survey of chief financial officers by the Bank of England.
According to the Financial Times, businesses intend to reduce their workforce by an additional 0.5% in the next year, marking the lowest rate since October 2020 when the economy was just starting to bounce back from the Covid impact and pandemic measures were still active.
Participants link the reduction in jobs to UK Chancellor of the Exchequer Rachel Reeves' choices to elevate taxes, the minimum wage, and to boost National Insurance contributions.
The survey indicated that approximately 20% of participants experienced a reduction in wages, 34% noted a rise in prices, and 66% reported worsening profitability.
Survey participants anticipate that inflation will average 3.3% over the next year, marking the highest level in 17 months. Over the long term (spanning three years), a rate of 2.9% is anticipated.
source: ft.com
According to the Financial Times, businesses intend to reduce their workforce by an additional 0.5% in the next year, marking the lowest rate since October 2020 when the economy was just starting to bounce back from the Covid impact and pandemic measures were still active.
Participants link the reduction in jobs to UK Chancellor of the Exchequer Rachel Reeves' choices to elevate taxes, the minimum wage, and to boost National Insurance contributions.
The survey indicated that approximately 20% of participants experienced a reduction in wages, 34% noted a rise in prices, and 66% reported worsening profitability.
Survey participants anticipate that inflation will average 3.3% over the next year, marking the highest level in 17 months. Over the long term (spanning three years), a rate of 2.9% is anticipated.
source: ft.com
