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Automation is blamed as jobs in services sector decline
The Guardian
|February 05, 2026
Companies in the UK's services sector cut jobs last month, as they turned to automation rather than hiring new staff, a key survey has shown.
The monthly purchasing managers' index (PMI) showed employment fell more sharply in January compared with December, continuing a trend that began in October 2024. The PMI survey, considered to be one of the most reliable indicators of how a sector is performing, said this was the longest period of job shedding in the UK services sector in 16 years, with firms also choosing not to replace voluntary leavers.
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