Britons' Job Security Hits Three-Year Low Amid Interest Rate Fears

The sense of job security among Britons has hit a three-and-a-half year low, according to new data from S&P Global UK consumer index. The index shows that workers in all industries except IT and telecoms are feeling less secure about their jobs. Retail workers reported the highest level of concern in September, amid a squeeze on retailers due to higher employment costs, weaker consumer spending, and supply chain disruptions linked to the Iran war.

The overall score for the consumer sentiment index slipped to 42.7 in September from 42.9 in August, with any reading below 50 indicating broadly negative sentiment. The latest survey showed that people continued to rein in spending as sentiment weakened, with reluctance to commit to expensive purchases like cars, holidays, and household appliances.

Consumers are also running down their savings at a rapid pace due to concerns about job insecurity and income. Over half of respondents expect the Bank of England to increase interest rates, which could further strain household finances. This sentiment is evident in the growing reliance on credit, as consumers become more entrenched in expectations that borrowing costs will rise.