Employment falls to lowest level since October 2012 on Starmer's watch as hiring slowdown deepens - London Business News | Londonlovesbusiness.com

"The latest Business Trends report from business advisory and accountancy firm BDO LLP, shows UK economic output in August reached its strongest point since 2021. BDO's Output Index rose to 100.82 in August, its highest level for over three years and the first time it has crossed a threshold that points to stronger economic activity. The uplift was driven by the services sector where output increased from 100.19 in July to 101.62, reflecting firmer consumer demand and seasonal summer spending."

"Business confidence also strengthened, recording its sharpest monthly rise in over a year. BDO's Optimism Index increased to 93.18 in August, up from 91.96 in July. The services sector was the main driver, lifted by stronger investment and expectations of a modest rebound in consumer spending. The manufacturing sector showed a marginal improvement, rising to96.65 from 96.50. While sentiment is beginning to recover from the lows seen for most of this year, it remains well below historic norms."

"The labour market continued to decline, with BDO's Employment Index falling to 94.01 in August- its lowest reading since October 2012. Falling vacancies have been driven by a freeze in hiring intentions along with shrinking payrolls and slowing wage growth, which all point to a sharp slowdown in hiring. As employers continue to grapple with this year's rise in National Insurance Contributions (NICs) and higher National Living Wages, labour budgets remain tight."

UK economic output in August rose to its strongest level since 2021, with BDO's Output Index at 100.82. Services led the uplift, increasing from 100.19 to 101.62 due to firmer consumer demand and seasonal summer spending, which offset a manufacturing decline to 94.51 amid falling orders and trade uncertainty. Business confidence improved, with the Optimism Index rising to 93.18 driven by services investment and modest consumer-spending expectations, though sentiment remains well below historic norms. The labour market weakened, with the Employment Index at 94.01, falling vacancies, hiring freezes, tight labour budgets from higher NICs and living wages, and forecasts of elevated unemployment into 2026.

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