According to data from S&P Global’s UK consumer index published in September 2026, job security for British workers fell to a three-and-a-half-year low across all sectors except IT and telecoms. Driven by rising borrowing cost expectations and supply chain disruptions linked to the Iran war, overall consumer sentiment slipped to 42.7, highlighting severe economic strain.
The Divergence in the UK Labour Market: Tech Versus Retail
British workers are facing widening fractures across the national economy. While technology and telecommunications maintain robust employment stability, other sectors are experiencing a sharp contraction in workforce confidence. Here is the math: S&P Global’s UK consumer index panel of 1,500 households placed overall job insecurity at its highest level since February 2023.
Retail workers reported the most acute anxiety during September. This vulnerability stems directly from higher employment costs, compressed consumer spending, and logistics bottlenecks connected to the Iran war.
The Bottom Line
- Multi-Year High Insecurity: S&P Global data reveals UK job security fears have hit levels not seen since February 2023, dragging the overall consumer sentiment index down to 42.7 in September from 42.9 in August.
- The Tech Exception: IT and telecoms stand alone as the only UK sectors avoiding the broader employment downturn, contrasting sharply with retail and City-based hiring.
- Macroeconomic Headwinds: Renewed expectations of rising borrowing costs, persistent energy price worries, and supply chain frictions tied to the Iran war are forcing households to scale back major purchases.
Macroeconomic Pressures and the City Hiring Slowdown
Consumer reluctance to spend extends well beyond daily essentials. Households are actively deferring high-value outlays on cars, holidays, and major household appliances. According to S&P Global economist Maryam Baluch, this trend highlights “a growing disconnect between rising economic growth and perceptions of employment security.” Baluch noted that a downbeat mood is spreading across the UK as optimism surrounding the new government fades against renewed cost-of-living pressures.
Financial services are feeling a similar squeeze. Data published by LinkedIn in June showed that hiring in the City of London was down 32% compared to January 2019 levels. Higher interest rates and aggressive corporate cost-cutting continue to weigh heavily on the financial institutions that dominate the capital’s labour market.
| Metric / Indicator | Reported Figure | Context / Period |
|---|---|---|
| Consumer Sentiment Index | 42.7 | September 2026 (down from 42.9 in August) |
| Job Insecurity High | 3.5-Year Peak | Highest level since February 2023 |
| City of London Hiring | Down 32% | Compared to baseline figures from January 2019 |
| Survey Sample Size | 1,500 Households | S&P Global UK Consumer Index Panel |
Broader Market Implications and Strategic Outlook
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
