Key facts
- The UK services sector has now experienced two years of job cuts.
- Payrolled employees in the UK fell by 78,000 between June 2025 and June 2026.
- The UK employment rate was 75.1% in April to June 2026, down 0.2 percentage points on the year.
- The UK unemployment rate was 4.9% in April to June 2026, up 0.2 percentage points on the year.
- UK vacancies decreased to 707,000 in May to July 2026.
- Hull University has launched a voluntary redundancy scheme.
The UK services sector has now experienced two consecutive years of job cuts, with employment falling across firms in September. This sustained period of decline was highlighted by the Office for National Statistics (ONS), which reported that payrolled employees in the UK fell by 78,000 (0.3%) between June 2025 and June 2026. While monthly figures showed a smaller decrease, the annual trend indicates ongoing job losses.
The ONS also noted that the UK employment rate for those aged 16 to 64 years was 75.1% in April to June 2026, a slight decrease on the year, while the unemployment rate stood at 4.9%, an increase on the year. The number of job vacancies in the UK also decreased, falling to 707,000 in May to July 2026.
Within the higher education sector, several universities are implementing significant job cuts and restructuring. Hull University has launched a voluntary redundancy scheme, while Lincoln University is seeking 33 more redundancies. Dundee University is cutting 190 jobs and closing degrees, and Exeter University has placed 14% of its staff at risk. Glasgow University has opened a voluntary severance scheme, and Hertfordshire University announced 200 job cuts. Aberdeen University has also undergone significant restructuring, including folding Modern Languages and risking about 100 jobs as part of a £12 million savings plan.