Overview

• Employment fell by 0.5% in the three months to August, the sharpest decline since September 2021, according to the Bank of England’s CFO survey.
• Companies expect headcount to drop by a further 0.5% over the next year, the weakest projection since October 2020.
• About two-thirds of firms report lower profits since April, when the Budget’s higher employer NI, minimum wage and business rates took effect.
• Forty-six percent reduced staffing and 34% raised prices to offset costs, with nearly half attributing job cuts to the employer NI increase.
• Annual wage growth eased to 4.6% with a 3.6% pace expected over the year ahead, while one-year inflation expectations edged up to 3.3%.