Labour’s Job‑Cutting Saga: The PMI Says “Nope”
UK jobs are going down the drain even as the private sector pulls off a modest uptick in activity. It’s the third straight month of layoffs, and the fastest loss rate in four years for the private business world.
What’s Fueling the Frown Face?
- Inflation that refuses to quit.
- Wars rocking the global supply chain.
- Raw material price swings.
- Weather‑driven disruptions.
All of this makes the economy look like it’s stuck in a time loop. Businesses warn that consumer confidence is low, and corporate budgets have turned ultra‑tight, letting non‑essential spending run for the wall.
Chris Williamson’s Take
“We’re looking at a triple whammy of bad news as 2024 winds down.” Chris Williamson, S&P Global’s chief business economist, says: Economic growth is stuck, jobs are slipping, and inflation is making a come‑back move.
“Since the early year burst of growth, firms and consumers went into a negative mood because of Labour’s down‑beat narrative and tougher rules.”
“The rise in national insurance and staffing regulations has made companies pull back on hiring – and December’s slump is the fastest since 2009, disregarding the pandemic.”
“PMI in December tells us the economy’s basically flat‑lined in Q4, but the job cuts and loss of confidence hint that we’re in for more trouble next year.”
Rhys Herbert’s Bottom Line
Senior economist Rhys Herbert at Lloyds adds, “These figures reflect both the weather cha‑cha and geopolitical turbulence that have peppered 2024.”
“Firms will look for ways to sustain a 2025 recovery while staying flexible enough to pivot when conditions shift.”
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