THE HOT STORY

UK employers are prioritising cost management over growth

A survey published by the Chartered Institute of Personnel and Development (CIPD) says employers in the UK are prioritising cost management over growth as indicators of employer confidence hold close to record lows. Meanwhile, workers are likely ‌to see inflation eat into their pay in the year ahead. Planned pay awards were mostly around 3% for the next 12 ⁠months - unchanged from levels over the past two years but below most forecasts for inflation growth. The CIPD ⁠survey of 2,049 employers was conducted between March 23 and April 23. James Cockett, senior labour market economist at the CIPD and author of the report, said: “With so much happening externally, organisations should focus on the areas they can directly influence. This means taking a proactive approach to workforce planning and ensuring investment in technologies such as AI is supported by the right mix of people, skills, and systems to deliver meaningful productivity gains.”

Personnel Today

Reuters

TECH & TOOLS

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WORKFORCE

Too many young people pushed towards university, says UK government adviser

Too many young people are being pushed towards university rather than technical education, leaving tens of thousands of recent graduates out of work, a government review into youth worklessness will say.

Financial Times

Lower-paid migrants more likely to stay

Lower-paid migrant workers are more likely to settle permanently in the UK than higher earners, according to a Home Office-backed study by the Migration Advisory Committee. The analysis of nearly 1m migrant journeys revealed that migrants earning the lowest wages are the most likely to remain in the UK long term, while those with the highest salaries are the most likely income group to leave. The report noted that 80% of care workers remained after ten years, compared to only 50% of natural and social science professionals.

The Times

TRAINING & DEVELOPMENT

More funding needed for oversubscribed courses

The Sunday Times highlights growing demand for further education courses in practical fields like carpentry, plumbing and construction, as colleges with capped student numbers turn away hundreds of applicants for some courses. The Association of Colleges (AOC) has said that nationally, 86% of colleges now operate waiting lists for construction courses, with funding, capacity limitations and teacher shortages all contributing. The AOC has called for changes to the current funding system, which provides funding based on last year's numbers. AOC chief executive David Hughes says colleges are left "in the unenviable position of either risking financial security by taking on students they haven't received full funding for, or turning away eager students who are likely to end up as Neet [not in education, employment or training], or stuck in insecure jobs."

Sunday Times

HIRING

Businesses halt UK investments amid Iran war

The ongoing conflict in Iran is causing UK businesses to pause investment and hiring plans, according to recent surveys. A BDO report revealed that over half of medium-sized firms are struggling with rising energy costs and supply chain issues, with Richard Austin from BDO saying that businesses are "struggling to absorb the latest economic shock." Meanwhile, the Recruitment and Employment Confederation (REC) reported a 7.7% drop in job vacancies from March to April. Neil Carberry, CEO of REC, noted that the labour market is becoming more unpredictable due to the conflict and domestic political uncertainty.

The Guardian

TAX

AI jobs threat 'could wipe out income tax'

Concerns are growing about the impact of artificial intelligence (AI) on jobs and taxes in the UK, the Daily Telegraph reports. Arun Advani, director of the Centre for the Analysis of Taxation, warns that significant job changes could affect tax revenues. Tom Blomfield, founder of Monzo, predicts income tax may disappear within five years due to AI. The UK relies on £1.2trn in tax receipts, with income tax and National Insurance contributing £535bn. If AI leads to widespread job losses, the government could face a £177bn shortfall, complicating public finances. Advani said: "The problem is fiendishly complex and there are no easy answers."

The Daily Telegraph

LEGAL

Mills takes BBC to court

Former Radio 2 host Scott Mills is suing the BBC for unfair dismissal after being fired amid historic sexual abuse allegations. Mills claims he was wrongfully dismissed in March when new information about a police investigation emerged. His legal team at Level Law argues that the BBC used him as a scapegoat. The BBC said it acted decisively based on new information, despite the investigation being closed years ago.

Mail on Sunday

RISK

Experts warn of cyber risks as AI advances

The Treasury, Bank of England and Financial Conduct Authority have warned companies to prepare for cyber risks posed by advanced AI models, saying their capabilities "are already exceeding what a skilled practitioner could achieve, and at a significantly higher speed, greater scale, and lower cost." In a joint statement, they said malicious use of frontier AI systems could threaten firms’ resilience, customers, market integrity and wider financial stability. The warning follows comments from Andrew Bailey, the Bank of England's governor, who last month highlighted concerns over AI tools which experts say could enable increasingly sophisticated cyberattacks against the banking sector.

Reuters

INTERNATIONAL

Singapore to help workers transition to resilient occupations

Singapore plans to introduce "career bridges" to assist workers affected by artificial intelligence (AI) disruption. The Economic Strategy Review (ESR) committee's recommendations aim to provide structured pathways, including training and job-matching services, to help workers transition into more resilient occupations. The move will “proactively develop workforce transition plans before large-scale displacement happens,” the ESR secretariat said. “We could prioritise areas with more acute disruption pressures, and where there are ready industry partners and trade Associations and chambers we can work with to support the effort.” Deputy Prime Minister Gan Kim Yong said Singaporeans should be prepared for career transitions to become more common. He said: “Some workers will need to move into adjacent occupations. Others may require deeper reskilling. Some PMEs may face longer periods of adjustment . . . We must strengthen support for workers in transition. Our support systems must become more integrated and more anticipatory.”

Straits Times

Starbucks cuts corporate jobs and closes offices

Starbucks is cutting 300 US corporate jobs and closing several regional support offices as part of a wider cost-cutting and restructuring programme aimed at restoring "durable, profitable growth." Offices in Atlanta, Burbank, Chicago and Dallas will close, while the company also reviews international support operations, with further job cuts possible outside the US. Starbucks said the changes would not affect its coffee shops and are intended to simplify operations and reduce costs. The company expects to pay around $120m in severance costs and reduce the value of some real estate assets by $280m. The measures come as chief executive Brian Niccol continues a turnaround strategy focused on improving store performance and profitability.

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