Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BrexitBusiness performanceFinancial servicesManufacturingLatest News

Fresh concern over jobs as UK service sector slumps

by Adam McCulloch 4 Oct 2019
by Adam McCulloch 4 Oct 2019 City of London workers cross London Bridge.
Photo: Shutterstock
City of London workers cross London Bridge.
Photo: Shutterstock

The UK’s service sector, which makes up 80% of the country’s economy, contracted in September prompting fears of a recession.

New contracts fell for the first time this year causing the biggest cut in employment in the sector since December 2009, according to the closely monitored Purchasing Managers’ Index (PMI).

The services sector has been considered highly resilient to the current Brexit uncertainty and was the only sector to grow when the economy contracted by 0.2% in the second quarter this year. Employment in manufacturing and construction also fell in September, found the PMI, with the fall in construction being the steepest since late 2010.

Economics and business

Latest business stories at Personnel Today

Gig economy latest

No deal Brexit fears afflict recruitment firms

Chris Williamson, chief business economist at research group IHS Markit, which compiles figures alongside the Chartered Institute of Procurement & Supply, said: “The vast service sector has now joined manufacturing and construction in decline.”

Particularly worrying is that the figures mean the UK is the only developed economy with its services sector in the process of becoming smaller, according to financial data provider Refinitiv.

Any reading below 50 on the index indicates a reduction in economic activity. The service sector moved from 50.6 in August to 49.5 last month. The all-sector index fell from 49.7 to 48.8, significantly weaker than comparable measures of activity globally and in the eurozone.

Williamson said this left the UK combined index at its lowest point since the immediate aftermath of the 2016 Brexit referendum but was particularly ominous “being the result of an insidious weakening of demand over the past year rather than a sudden shock”.

IHS Markit reported that about 25% of service sector companies had reported declining workforce numbers. This, it stated, was because organisations were not filling posts vacated by leavers, but it still represented the first decline in jobs for five months, and the sharpest since August 2010.

An even larger proportion of employers in manufacturing and construction, where figures have been artificially boosted by the stockpiling of materials and equipment, were shedding jobs, the Index found.

A further study published today by the British Chambers of Commerce (BCC) confirmed that economic conditions were weakening with the balance of manufacturers reporting increased export orders at its lowest in a decade and domestic sales at their lowest since 2011. Cash flow was also proving a problem for many manufacturers.

The BCC report found that the balance of firms in manufacturing that were increasing investment in training had fallen to its lowest level since the first quarter of 2010. It used the findings to “implore” Westminster to do everything in its power to “avoid a messy and disorderly Brexit, while at the same time taking bold action to incentivise investment”.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Suren Thiru, head of economics at the BCC said: “Our findings point to a worrying drop-off in UK economic activity, with unrelenting uncertainty over Brexit and a notable slowing in global growth prospects dragging down almost all the key indicators in the quarter.”

Latest HR job opportunities on Personnel Today

Browse more human resources jobs

Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
BBC staff demand answers over Naga Munchetty treatment
next post
More than a fifth of engineers take time off because of mental health

You may also like

UK and EU agree to collaborate on ‘youth...

19 May 2025

Labour MPs urge more flexibility with EU over...

24 Apr 2025

Trump’s tariffs to hit growth and jobs, warn...

3 Apr 2025

Youth mobility scheme on the table for Starmer...

21 Feb 2025

Sharp decline in net migration as fewer dependants...

28 Nov 2024

Qualified support for Reeves after Mansion House speech

15 Nov 2024

Why ministers must restore the EU youth mobility...

21 Oct 2024

Barriers to workers getting qualifications recognised in EU

2 Jul 2024

SNP manifesto: NHS investment and rejoining the EU

19 Jun 2024

Seasonal farm worker brings tribunal case over unpaid...

24 May 2024

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+