Tech the only bright spot as job security fears climb to highest level since 2023
Job security for British workers has fallen to a three-and-a-half year low across all sectors other than IT and telecoms, according to new data from S&P Global’s UK consumer index.
The findings, based on a panel of 1,500 UK households, show the level of job insecurity was at its highest since February 2023 as consumers continue to rein in large purchases over renewed expectations that borrowing costs may be set to rise.
Of all the sectors surveyed by S&P Global, retail workers reported the greatest level of concern over job security in September as the sector faces a squeeze due to higher employment costs, weaker consumer spending, and disruptions to their supply chains linked to the Iran war.
The overall score for the consumer sentiment index slipped to 42.7 in September from 42.9 in August.
S&P Global said the latest reading indicates a “notable strain on financial confidence across UK households.”
‘Downbeat mood spreading across UK’
As well as this, consumers remained reluctant to splash out on on more expensive purchases such as cars, holidays and household appliances.
S&P Global economist, Maryam Baluch, said job insecurity rising to its highest level for more than three-and-a-half year highlights “a growing disconnect between rising economic growth and perceptions of employment security.”
“September data show a downbeat mood spreading across UK households as improved sentiment surrounding the new government is eroded by renewed worries over energy prices, the cost of living and job prospects,” Baluch said.
Hiring in the City is also down 32 per cent from January 2019, according to data in June from Linkedin, as higher interest rates and corporate cost-cutting weigh on firms that dominate London’s labour market.