08 Dec 2025A survey carried out by the Bank of England has suggested that UK businesses are reducing their headcounts at the fastest pace since the Covid-19 pandemic. The survey found that firms cut jobs at the fastest rate since the pandemic in the weeks before the Autumn Budget. According to the Bank, employment in the private sector fell by 1.8% in November, which represented the steepest decline since July 2021. Experts at the Bank of England also anticipate that workforce numbers will reduce by 0.7% on average in 2026. Rob Wood, Chief UK Economist at Pantheon Macroeconomics, commented: 'Sharply weaker employment gains nail a December rate cut. 'Inflation or official labour market data would have to surprise hugely to stop the Monetary Policy Committee (MPC) reducing rates in December now. 'But there are clearer signs that structural changes in the labour market are supporting pay, which will have to keep the MPC cautious.'