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UK Services Sector Slows Down As Unemployment Peaks… Yet Again.

by | 03/11/2023

   Estimated reading time: 2 minutes

As per the latest figures released the Purchasing Managers Index (PMI) fell by 2 points from 53.3. in May 2012 to 51.3.The extra holidays over the jubilee weekend was quoted as one of the main reasons for the dip in the number. In terms of PMI, anything more than 50 should be considered as healthy and growth. The fact however remains that the service sector has slowed down yet again. The more worrying bit is that this is 8 months in a row that the service sector has slowed down.

Kesh Thukaram, Director of Best Insurance commented that we are yet to see the benefit of the Quantitative Easing and the much awaited recovery, the unemployment numbers speak a different story. He commented that unfortunately, all the trends from Europe and the US lean towards higher unemployment in the short term. There have been reports a few days back that the manufacturing sector has also slowed down and the overall impact on unemployment is likely to be disastrous. 
Unemployment numbers in the UK showed a small respite last month and there was a common thread among all analysts that the employment lag behind by a few months and the real effect on unemployment resulting from the lack of growth in the economy takes a few months. 

Stuart Boseley, Director of Best Insurance commented that from an insurer perspective, increasingly insurers are excluding whole organisations. The banking sector has been severely hit by several insurers taking a hard view on the unemployment risks. 
The market is slowly re-aligning itself from being unemployment insurance led to income protection insurance and this is evident from the number of enquiries that are made by the customers. Best Insurance has access to over 17 insurers in the income protection market and provides the customers with a wide range of products and policies to choose from. Long term income protection insurance is increasingly becoming popular as the customers are now aware of the benefits of such policies. The efforts put in by the Income Protection Task Force and the various initiatives by the Government such as simpler products have helped in terms of this sector getting the visibility it deserved. 

The next few months is not going to be easy, while the country will be celebrating Olympics and we will have unprecedented numbers of people coming into the UK, which should the retail sector, a lot of doubt remains on the overall performance of the country as a whole.