The United Kingdom's labor market continues to show signs of weakening, with employment and job vacancies declining for the sixth consecutive month in the second quarter of 2025, according to the Office for National Statistics. Despite the fall in payrolls and hiring, wage growth remains elevated at 5%, presenting a challenge for the Bank of England as it navigates its interest rate policy amid inflation concerns and rising employer costs. London is particularly affected by the slowdown, facing a potential £2 billion impact from increased business rates. This rise in business rates is also threatening the viability of over 100 large supermarkets across the UK, which may face closures as a result. The combination of tax increases, high wage costs, and weak consumer spending has compelled businesses in London to reduce payrolls at a faster pace than the rest of the country.