Displaying items by tag: unemployment

The UK's unemployment rate surged unexpectedly to 4.2% in the three months to February, up from 3.9% in January, the highest level in nearly six months. This increase, alongside a slowdown in earnings growth, reflects economic uncertainty affecting the job market. Real wages rose by 2.1% due to falling inflation. Economists suggest these weaker-than-expected employment figures may prompt the Bank of England to consider interest rate cuts as early as June. HMRC data revealed a significant decline in workers on payrolls by 67,000 in March, the largest drop since November 2020. Vacancies also decreased for the 21st consecutive period. While recent output data suggests potential economic growth in the first quarter, the Office for National Statistics (ONS) advises caution in interpreting unemployment rate data due to low survey response rates. There are also concerns over industrial action and increasing inactivity rates. Acting shadow work and pensions secretary Alison McGovern said:  'Tory failure is laid bare by the reality that we are now the only country in the G7 with an employment rate stuck below pre-pandemic levels’. See also

The Local Government Association (LGA) has warned that the various schemes designed to support economically inactive individuals back into work are failing to meet their needs. A study commissioned by the LGA revealed that 51 national job support programmes are not coordinated and only a few specifically address economic inactivity. According to the Office of National Statistics, around 8.7 million people aged 16 to 64 in the UK were economically inactive between May and September. The LGA argues that many individuals who are fit for work and want a job do not receive support from job centres because they do not claim out-of-work benefits, resulting in unfilled vacancies. It called for better collaboration between Whitehall departments and local councils to address the complex reasons why people are economically inactive, such as health conditions or a lack of skills.

Microsoft will cut 10,000 jobs in the latest round of staff redundancies to hit the tech industry. It will affect 5% of its global workforce and cost £972m in severance and reorganisation costs. Microsoft is the latest, but it won't be the last, as the giants seek to tighten their belts following the boom time of the pandemic, when lockdowns meant people were stuck at home, wanting to spend their cash on digital entertainment and devices. Amazon plans to cut over 18,000 jobs, the largest number in the firm's history, as it battles to save costs. The online giant employs 1.5 million people globally and said the job cuts would include Europe. Meanwhile M&S will create 3,400 jobs as it opens new shops. AJ Bell’s investment director said it felt significant that M&S had revealed its investment figure at a time when the retail environment is not buoyant. see

A new government scheme is enabling churches and charities to support some of the most vulnerable in the job market. The pandemic has disproportionately impacted those aged 18-24. Between March and August there was a 124% increase in claims for Universal Credit from people in this age group. With the economic future remaining uncertain, Rishi Sunak announced a new job creation scheme to help avoid damaging long-term employment for young adults. Dubbed the ‘kickstart scheme’, this package of support will subsidise the employment of 16 to 24-year-olds by providing six-month quality work placements that don’t cause existing employees or contractors to lose work; give a minimum of 25 hours per week for six months; paying at least the national minimum wage for their age group; and should not require people to undertake extensive training before they begin the job placement.

Data from the Bank of England released on 1 September show an increase in mortgage and household borrowing. StepChange debt charity says this may point to the financial pressures many households face, which will crystallise into serious debt problems when unemployment support and payment holidays end. Since May, StepChange has published a monthly breakdown of trends to understand how the pandemic is affecting household debt, and to focus on the best ways of helping people. In July it gave advice to 14,000 clients, but this number is artificially suppressed by government support mechanisms still in place. However, a notable feature in July is the trend toward greater unemployment worries. Not only has the proportion of unemployed clients increased, but searches about redundancy on the charity's website saw a massive 1,800% increase in July compared with June. StepChange said, ‘It’s absolutely vital that we see ongoing support to help people get through the next period, whether they are in employment or not, if we are to avoid entrenching problem debt as a long-term legacy of the pandemic.’

Lockdown is the only solution to ending the pandemic, and Italy’s government has extended it beyond 3 April with no new deadline. In the south, hunger and hardship threaten to be even bigger problems than the virus, with regions beginning to feel the weight of the economic blow. Many residents are beginning to run out of food and money. An estimated 3.3 million Italians - one-third of whom are located in the south - work off-the-books for cash, making them unsure of when their next pay cheque will come. This concern has caused some southern Italians to plot raids against grocery stores, and authorities are worried the situation could become violent. Pray for the poorest southern regions - Sicily, Campania, Calabria, and Puglia - to know peace not violence as they begin to struggle for food and money. A private Facebook group, urging people to organise large raids on grocery stores and markets, is currently under investigation. One man addressing the government said, ‘You will regret this because we are going to have a revolution’. See

The World Bank reported that after sanctions were removed in 2016 there were many positive economic developments in Iran. In November 2018 the US reimposed sanctions and requested India, China and EU countries, to stop working with Iran. Sanctions are major causes of food insecurity, mass suffering, and eventual high poverty rates. Oil is the largest source of income. When there is no oil coming, there are no US dollars. Everything purchased in Iran is with US dollars. ‘No dollars’ causes the value of the Iranian rial to fall drastically, causing many companies to go bankrupt and having to let a lot of employees go. Sanctions increase the gap between the rich and poor. However there are a number of Christian business and mission initiatives established in Iran, including church-planting via small businesses. See

One in eight young people seeking asylum in the UK are from the impoverished Balkan state of Albania. There is little to do in Skenderbeu, a remote town in the mountains where jobs are few and poverty rife. Edison sees only one way out: ‘I want to go to England for a better life. I’ll do any work. My brother and my friends have already gone. I’m jealous. This is my dream.’ His brother left the town four years ago, one of hundreds of boys from this region - some as young as thirteen - whose families pay thousands of pounds to people-smugglers to take them to Britain. Every family seems to have at least one relative in London, many of whom end up working illegally on building sites or in car washes. The little town survives on money sent from Britain. Officials estimate youth unemployment in Albania could be as high at 80%.