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UK Edition
27th October 2025
 
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THE HOT STORY

Workers' rights reforms threaten the jobs market, think-tank warns

The Resolution Foundation has warned that Labour's proposed Employment Rights Bill could harm the jobs market, suggesting that the legislation, which includes a day-one right against unfair dismissal, may inhibit hiring and lead to a crisis in tribunal courts. Ruth Curtice, chief executive of the foundation, said: "Moving to day one rights for unfair dismissal is high risk and should be amended in the Bill before it's too late." While the foundation backs much of the legislation, including proposals to enhance sick pay and eliminate most zero-hours contracts, it warned that changes to unfair dismissal rules risked damaging the economy. The Office for Budget Responsibility has already warned that the Bill could have a negative impact on jobs, prices, and productivity. A government spokesman insisted that reforms to the labour market and employment rights "are crucial to drive economic growth," adding that ministers "are ensuring new laws work for businesses while continuing to make the tribunal system more resilient."
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HIRING

Job vacancies fall

Analysis by Adzuna shows that job vacancies in the UK fell to their lowest level of 2025 in September, dropping 2.4% to 826,205, as employers adopted a cautious approach ahead of the Budget and amid expectations of higher taxes. Despite the fall in vacancies, average advertised pay rose 8.8% year-on-year to £42,417 - although over half of listings did not include salary details. Adzuna co-founder Andrew Hunter described the market as "steady but cautious," adding: "Employers are still prepared to pay for the right people, but they're taking longer to hire and they're being more selective about where they invest." Retail saw an 8.1% rise in openings due to pre-Christmas hiring, while consultancy roles fell 9.9% and marketing and PR positions declined 7.8%, reflecting cutbacks in non-essential spending.

Graduate loan repayments hit record low

In 2024, only 44,527 graduates from Russell Group universities began repaying their student loans, a drop from the 57,000 seen in a typical year. The University of Cambridge and the University of Oxford saw the number of graduates repaying their loans within two years of getting their degree fall by 29% and 31%, respectively. The decline in the number of students paying off their debt points to a wider graduate jobs crisis, with Nick Hillman, director of the Higher Education Policy Institute, noting that graduates would be on better salaries if there was "more economic growth and better productivity." Several employers have reduced graduate positions, with PwC cutting its entry-level roles from 1,500 to 1,300. Marco Amitrano, PwC UK's senior partner, said this reflects a "wider slowdown" in investment and hiring across the economy.
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WORKFORCE

Government stands firm against striking doctors

Health Secretary Wes Streeting says the government will not "be held to ransom" by striking doctors ahead of a planned five-day walkout in November. He emphasised that while a deal exists to increase training places and support for exam fees, it does not include pay negotiations. Streeting told the BBC's Sunday with Laura Kuenssberg that the strike action had "little to no public support" and would be "inflicting more harm and delays to patients."

Experts warn 1,000 oil and gas jobs to be lost each month

Almost 1,000 direct and indirect UK oil and gas jobs are expected to be lost every month before the end of the decade, the trade body Offshore Energies UK (OEUK) has warned. The warning comes as MPs on the Commons Scottish Affairs committee urge energy secretary Ed Miliband to be "pragmatic" about allowing more North Sea oil drilling. Sir Keir Starmer is coming under increasing pressure from Scottish Labour to get Mr Miliband to move to a more pro-oil stance ahead of next year’s Holyrood election.

Cost of living crisis hits women hardest

Research reveals that the cost of living crisis is disproportionately affecting women in the UK. The Financial Wellbeing report indicates a 29% increase in the economic gap between the genders over the past year. The rise was driven by increased financial pressures on women, who typically earn less than men and are more likely to have childcare responsibilities.

Low Pay Commission calls for National Living Wage increase

The Low Pay Commission has recommended an increase in the National Living Wage that would see it rise from £12.21 to £12.71 per hour. This 4.1% rise exceeds the current inflation rate of 3.8%. About 1.9m workers are currently paid at or below the £12.21 rate. An increase could add to pressure on firms that have already seen a £25bn hike in employers' National Insurance contributions and are set to face an increase in business rates. A Bank of England survey in September found that 46% of businesses said higher minimum wages were lowering profit margins, while 31% said it was forcing them to raise prices of goods and services.
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ENGAGEMENT

A majority of UK workers feel undervalued

A poll by greeting card company Moonpig suggests that more than half of British employees do not feel valued in the workplace. The study of 2,000 working adults also saw 53% of staff say that a lack of recognition at work has affected their motivation. Moonpig is launching a new platform aimed at enhancing employee engagement through personalised corporate gift cards. The firm says this could help employers improve employee engagement, retention and productivity. 
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LEGAL

BBC staff allowed to work from home over toilet policy

The BBC is allowing staff who are concerned about a policy permitting biological men to use women's toilets to work from home. Transgender employees can discuss their needs with management or HR if they "feel provision is not available for them." The BBC is reviewing its policy, which is awaiting government guidance following a Supreme Court ruling defining sex in the Equality Act.

Drax faces lawsuits over health risks

Drax, the UK’s largest power station, faces ten lawsuits from current and former employees who claim inadequate protection against health risks linked to wood dust exposure. The allegations cite conditions including asthma and nasal cancer. Six compensation claims have been settled, while four are set for trial in 2026. A class action lawsuit has also been filed in the US, representing 700 residents near a Drax facility. Neil Lindridge, a former Drax worker, said: "The dust is so fine that you can only see it in sunlight." Drax has denied ongoing risks despite past internal acknowledgments of health hazards.
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ECONOMY

UK economy shows signs of recovery

The UK economy may be turning a corner, with experts noting improved growth and inflation trends. The S&P Global UK composite flash purchasing managers' index (PMI) rose to 51.1 in October, signalling recovery. Manufacturing PMI increased to 49.6, while services PMI reached 51.1. Chris Williamson from S&P Global Market Intelligence commented: "September was a low point for the economy from which business conditions are starting to improve." Consumer inflation expectations rose to 4.2%, above the Bank of England's target. Analysts suggest a potential interest rate cut could occur as early as December.
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INTERNATIONAL

JPMorgan offers staff AI chatbot to help write performance reviews

JPMorgan Chase has given employees the option to use its in-house AI system to help shortcut the often painstaking process of writing the multiple performance reviews typically required by large companies.
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OTHER

More schools opt for two-week October half-term

Schools are increasingly opting for two-week half-term holidays in October to help children and teachers cope with the long autumn term. According to analysis by the Times, over 25 academy trusts and five local authorities, running more than 330 schools, have already doubled the length of the half-term holiday or are poised to do so. Another three trusts are consulting on introducing the measure. Research suggests that parents of older children and those on higher incomes are more likely to support the extra week. Meanwhile, head teachers are using the extended holiday as an incentive for teacher recruitment and retention. The two-week break is most common in London, where 34% of teachers reported that their school offered the extended holiday, but least common in Yorkshire and the northeast, where only 8% said the same.
 
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