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UK Edition
11th May 2026
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THE HOT STORY

Iran conflict 'will cost UK 163,000 jobs'

The UK is set to lose 163,000 jobs this year due to rising energy costs linked to the Iran war, according to the ITEM Club. The manufacturing sector will bear the brunt, with 65,000 jobs at risk, while construction will see 32,500 positions vanish. Consumer confidence is plummeting, with 90% of households worried about living costs. Tim Lyne, economic adviser to the ITEM Club, commented: "Some of the lowest-income regions will feel the biggest effects." Only public sector jobs, particularly in healthcare, are expected to grow. A government spokesman said: "We have the right economic plan to deal with price rises caused by the war."
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PROBATION AND PAY

Two essential tools for probation and pay decisions

Probation and pay decisions are closely linked to fair treatment and legal obligations under the Employment Rights Act 2025. Getting them wrong can expose risk early, getting them right creates consistency, confidence, and defensible decision‑making from day one. These two practical resources give HR teams a clear structure to manage probation effectively and make fair, compliant pay decisions you can stand behind.

Get Access to Your Compensation Strategy Evolution Checklist Here

Get Access to the Probation Policy Today

 
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TECHNOLOGY

AI used to train firm's lawyers on soft skills

Law firm Perkins Coie's London office is seeking to enhance its lawyers' soft skills through a partnership with AI training platform Levra. The firm is beta testing a program that uses avatars to simulate scenarios focused on emotional and social intelligence. Ian Bagshaw, the managing partner of Perkins Coie’s London office, said: “We’re working with [Levra] in order to create a training pathway across core skills that allows our talent to practice, learn, practice outside of client situations, so that when they’re in client situations and when they’re in difficult internal situations, they are prepared, they’ve seen it before, they understand how best to communicate.” Bagshaw added: “The use of technology creates an absolute safe space for people to experiment . . . It’s very hard to recreate it in any human coaching environment.”
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WORKFORCE

Teachers in England to vote on strike action

Teachers and school support staff in England could take strike action if the government proceeds with its proposed pay recommendations for the next academic year, the National Education Union has warned. The union said it would hold a formal ballot in the autumn unless ministers improve the offer, which currently proposes a 6.5% pay rise spread over three years and which the NEU argues would fall below inflation and increase pressure on school budgets. The Department for Education said any industrial action would disrupt pupils and families, while insisting it had taken steps to improve pay, workload and staff wellbeing. The dispute follows previous strikes in 2023, which ended after the government agreed to a revised 6.5% pay settlement.
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HIRING

Employers increasingly favour temporary staff over permanent hires

Companies in the US and Europe are increasingly relying on temporary workers amid economic instability and artificial intelligence-driven disruptions, with staffing firms reporting that clients are turning to contractors as employers evaluate how AI will affect their labour needs. “When clients will have more confidence and talent to start changing jobs or organising work with more permanent jobs, we don’t know,” observed Amsterdam-based Randstad’s Chief Financial Officer Jorge Vazquez on the company’s latest earnings call.

UK permanent jobs fall at fastest pace in three months

Job numbers saw their steepest decline since January last month, according to KPMG and the Recruitment and Employment Confederation. The permanent placements index dropped to 47.5, indicating a contraction in the jobs market. Jon Holt, KPMG's group chief executive, noted that hiring decisions are being deferred due to the conflict in Iran. Neil Carberry, chief executive of the REC, expressed concerns over inflation and supply chain disruptions. Despite the overall decline, London and northern England saw an increase in permanent placements, with an index reading of 54.9.
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HEALTH & WELLBEING

Work-seeking youngsters burned out by 'doomjobbing'

Psychotherapists have coined "doomjobbing" as a term for young graduates who are addicted to endlessly refreshing job listings. Jo Hemmings, a behavioural psychologist, observes: "Infinite-scroll job boards create a powerful dopamine loop where every new role offers a tiny hit of hope . . . Most applications go nowhere but the occasional response keeps people coming back. That unpredictability is psychologically very addictive." Consequent "emotional hypervigilance" leaves people exhausted and demoralised, she said. "Anticipation, rejection, despair, anticipation, rejection, despair. Ultimately it is a waste of time," says psychotherapist Jo Ellen Grzyb. "Even though it looks as though they're busy 'doing' something it's quite a passive position to be in."
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CORPORATE GOVERNANCE

Lloyd’s of London debates disclosing findings of probe into governance concerns

Lloyd’s of London executives are debating how much information to release about a governance probe regarding former CEO John Neal’s relationship with a woman who was promoted during his tenure.
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LEADERSHIP

South East Water chief quits after calls for management clear-out

David Hinton has resigned as chief executive of South East Water following widespread criticism of the utility over supply failures and outages. The company announced he will remain until a successor is found to ensure a smooth transition. Hinton's departure comes after former chairman Chris Train resigned amid criticism from MPs who expressed a lack of confidence in the company's leadership. Environment Secretary Emma Reynolds said: "This must mark the beginning of positive change at South East Water."
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INTERNATIONAL

JPMorgan faces scandal over sex slave claims

Chirayu Rana, a JPMorgan Chase investment banker, is suing the bank, alleging he was made a sex slave by his boss, Lorna Hajdini. Rana claims she drugged him and subjected him to unwanted sexual advances and physical abuse. The lawsuit has gained significant attention, especially after it was revealed that JPMorgan offered Rana $1m to leave. Both JPMorgan and Hajdini deny the allegations. Jim Armitage in the Sunday Times says the salaciousness of the case has spread around boardrooms on both sides of the Atlantic, leaving directors and lawyers asking how would they handle such allegations at their company.

Korea considers 'robot tax' amid AI job fears

Korea is contemplating a “robot tax” to address potential widespread job losses from AI advancements. The National Assembly Futures Institute's report advocates for an “AI social security tax” to redistribute profits from AI back into society. President Lee Jae Myung supports the idea, but concerns exist about its impact on innovation. Critics warn that such a tax could drive companies to relocate operations. “The cleanest approach will be creating a dedicated ‘AI tax' or ‘robot tax,' for firms whose profits have surged on the back of AI, and redistributing the proceeds as a form of basic income to those displaced,” said Jeon Chang-bae, chair of the International Association for AI and Ethics. “If deployed as public policy funding, priority should go to retraining and reemployment support,” he added.

Portugal tightens citizenship rules

A new Portuguese law will double the amount of time needed for foreigners to obtain citizenship. The period required for most foreigners to obtain citizenship will be extended from five to up to 10 years. Individuals from Brazil, Angola and other Lusophone nations will have to wait seven years to obtain citizenship instead of five. Bloomberg notes a massive inflow of immigrants following the pandemic that has strained Portugal’s housing, health care and public services.

Lula moves to end Brazil’s six-day working week

Brazil's leftwing President Luiz Inácio Lula da Silva has proposed cutting maximum weekly hours from 44 to 40 to in effect end the six-day working week, without reducing wages.
 
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