Published by Global Banking & Finance Review®
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleUK job sentiment hits a 5-year low, with employment expectations declining and inflation predictions rising, according to a BoE survey.
LONDON (Reuters) -British companies' expectations for employment in the year fell last month for the first time in nearly five years, while expectations for future inflation touched the highest level since late 2023, a Bank of England survey showed on Thursday.
The readings underlined the trade-offs faced by the central bank as it weighs further cuts to interest rates, faced with growing signs of a cooling labour market coupled with the highest rate of inflation among Group of Seven economies.
The BoE kept borrowing costs on hold on Thursday, but a narrow vote and signs that Governor Andrew Bailey might soon join those seeking a rate cut increases the chances of a December move after the government's budget later this month.
The BoE's Decision Maker Panel showed expected employment growth for companies during the three months to October slipped to -0.1% from zero in September, marking the first negative reading since November 2020, during the COVID-19 pandemic.
Expectations for wage growth ticked higher to 3.7% in the three months to October, the highest reading for five months.
And while companies' expectations for their own price increases in the year ahead were steady, they predicted consumer price inflation of 3% in the year head, the highest reading since December 2023.
(Reporting by Andy Bruce; editing by Suban Abdulla)
Employment sentiment refers to the general outlook or expectations of businesses regarding job creation and employment opportunities within a specific period.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Interest rates are the cost of borrowing money or the return on investment for savings, typically expressed as a percentage.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
Wage growth refers to the increase in the average pay rate for workers over a specific period, often reflecting economic conditions and labor market dynamics.
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