Human Times
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UK Edition
15th October 2025
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THE HOT STORY

Public sector pay growth outpaces private sector

Public sector pay has significantly outpaced private sector earnings, with year-on-year growth at 6% compared to 4.4%, according to the Office for National Statistics (ONS). Andrew Wishart, senior UK economist at Berenberg, noted that public sector pay growth, including bonuses, is driving overall wage increases. Average wage growth was 4.7% in the three months to August, the ONS data shows, with this down from 4.8% over the three months to July. Neil Carberry from the Recruitment and Employment Confederation warned that the widening pay gap is unsustainable and exacerbated by a hike in National Insurance contributions that has hit private sector employers. On gaps between the sectors, Jake Finney, senior economist at PwC UK, notes that "strong public sector hiring... continues to mask a far weaker picture in the private sector."
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EMPLOYEE BENEFITS

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WORKFORCE

Unemployment passes 1.7m

The UK unemployment rate has risen to 4.8%, the highest since May 2021. Data from the Office for National Statistics (ONS) shows that 1.737m people were logged as unemployed in the June to August quarter, with this an increase of more than 60,000 since the previous three month period and the highest total since the November 2020 to January 2021 quarter. Overall, payroll employment fell by 93,000 in the year to August, while vacancies decreased by 9,000 to 717,000 in the July to September quarter. Professor Joe Nellis, economic adviser at MHA, commented: "Hiring momentum has slowed across most sectors, with many employers holding off on new recruitment or scaling back hours instead of making redundancies."

Employers hesitant to hire young talent

The UK job market is struggling, with youth unemployment reaching a four-year high and vacancies declining. Experts attribute this to rising costs from national insurance and minimum wage increases, which deter employers from hiring young workers. Joe Nellis, an economics professor, noted that employers are hesitant to take risks on younger candidates due to these financial pressures. Jack Kennedy from Indeed stated that employer confidence remains fragile, suggesting the labour market will not improve soon. The upcoming budget may further impact hiring decisions, especially among small and medium-sized firms.

Apprenticeships surge as graduate jobs dwindle

Apprenticeship offers are increasing as graduate vacancies decline, according to the Institute of Student Employers. Graduate hiring fell by 8% last year, while apprentice hiring rose by 8%. Despite rising competition for roles, starting salaries for graduates remain at £33,000, while school leavers earn £24,000. A recent Grant Thornton survey found that 44% of parents now prefer school leaver apprenticeships over university. 

Digital ID scheme faces fierce backlash

The UK's digital ID scheme has been heavily criticised by TechUK, which argues that the government's portrayal of it as a "silver bullet" for illegal working oversimplifies complex immigration issues. The report highlights that even countries with established ID systems struggle with shadow economies. Labour MPs, including Nadia Whittome, expressed concerns that mandatory digital ID will not improve lives or tackle illegal working. A petition against the scheme has garnered 2.8m signatures. David Rennie, a digital compliance expert, emphasised the need for better enforcement mechanisms instead.

NHS staff flock back to work

Thousands of NHS staff have returned to work after retirement due to a rule change allowing them to take their pensions and rejoin the NHS pension scheme. In the year following the 2023 change, 18,725 staff utilised the retire-and-return scheme, the highest figure on record, compared to 4,697 in 2020-21. Although numbers dipped slightly to 12,597 in 2024-25, the trend indicates a growing willingness among NHS staff to return to work. Graham Crossley from Quilter noted: "Retire-and-return is proving vital for retaining clinicians and nurses."
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TRAINING & DEVELOPMENT

Employers to pay more to hire migrants

Home Secretary Shabana Mahmood has announced stricter immigration measures in a bid to strengthen integration and reduce net migration. The immigration skills charge, which is paid by employers sponsoring foreign workers in order to fund training for British individuals, will be raised by 32%. It was also announced that migrant workers will have to pass A-level English language standard tests in order to live in the UK. Additionally, the post-study work period for foreign graduates will be cut from two years to 18 months, and students must prove they can financially support themselves. 
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LEGAL

MoJ misconduct sackings soar

The Ministry of Justice (MoJ) has seen a significant rise in staff dismissals for misconduct, with 397 employees sacked in the last year, up from 181 in 2022. The number of final written warnings also surged from 183 to 384. High-profile sex scandals involving prison officers have contributed to this increase, with 165 prison staff dismissed for misconduct in the year to June 2024. Prof Ian Acheson, a former prison governor and government adviser on extremism in jails, said: "Poorly trained, poorly paid and poorly led unsuitable people being thrown into the maw of a prison system run largely by drug cartels will produce the statistics you are seeing." An MoJ spokesman noted that the 397 staff sacked for misconduct last year represented just 0.4% of the department's workforce.

Sexual misconduct complaints climb

Complaints of sexual misconduct against police officers have surged, reaching a record 404 in 2024/25. This marks a 103% increase since 2020, with over half of claims from 2020 to 2024 remaining uninvestigated. Notably, 70% of recent allegations involve sexual assault. The rise follows serious concerns about misogyny within the Metropolitan Police, highlighted by high-profile cases like those of Wayne Couzens and David Carrick. Met Commissioner Sir Mark Rowley acknowledged the issue, saying: "We must take all complaints seriously."
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STRATEGY

TalkTalk to cut jobs in shake-up

TalkTalk has announced plans to cut up to 100 jobs in its consumer business as part of a restructuring plan that will see firm aim to become more "focused, agile, and dynamic." A spokesperson said: "The proposed changes to our consumer business are a necessary part of that journey." It was reported in September that the telecommunications company was planning to cut around 350 jobs at its subsidiary, Platform X.
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CORPORATE GOVERNANCE

M&S extends chair's tenure

Marks and Spencer has decided to extend Archie Norman's tenure as chair, citing his "exceptional" performance since taking on the role in 2017. Under the UK’s corporate governance code, a chair is expected to step down after nine years on the board unless companies can justify why an extension is warranted. While Mr Norman will reach the "comply or explain" threshold in September 2026, the retailer has extended his tenure for another three years until 2029, subject to an annual review by a committee of independent directors. M&S said the board was "unanimous in its conviction" that keeping Mr Norman as chairman "is in the best interests of the company," adding that there is "widespread support for this view across the shareholder base."

Ocado appoints new chief revenue officer

Ocado Group has appointed Nick de la Vega as its first chief revenue officer, aiming to enhance global sales across food and non-grocery sectors. De la Vega, previously global head of sales at Atos, will report to Tim Steiner, Ocado's co-founder and CEO. This strategic move comes as Ocado seeks to improve its stock market valuation, which has suffered recently, with shares dropping nearly 40% over the past year.
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DIVERSITY, EQUITY & INCLUSION

BAE Systems leads the charge for women

BAE Systems has made significant strides in female representation within its leadership. Karin Hoeing, the director of culture and business transformation, noted her unique background helped her integrate into the predominantly male executive committee. The company now boasts five women among its twelve executives, earning it the 25th spot on Forbes' list of the World's Top Companies for Women 2025. Despite progress, challenges remain, with only 8.5% of CEOs in the S&P 500 being women. Hoeing emphasised the importance of role models in leadership for inspiring future female leaders.

Premier League tackles online abuse surge

Richard Masters, Premier League chief executive, has announced that players will take the knee during this weekend's matches to combat racism. This decision follows a significant rise in online abuse, which has quadrupled this season. While club captains support the gesture, individual players may choose to opt out. Masters expressed concerns about the anonymity of social media users and suggested that identity checks could help address the issue. He stated: "I simply don't think it should be part of a professional footballer's life to have to put up with this sort of stuff." The league continues to push for better protections against online abuse.
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PRODUCTIVITY

AI transforms workplace performance management

AI is reshaping performance management in organisations, moving away from traditional methods. Executives from companies like Headspace and BambooHR highlight that AI removes psychological barriers to honest feedback. This technology enables continuous development rather than annual evaluations, allowing for real-time insights into employee performance. Smaller, capable teams are becoming the norm, as AI handles routine tasks. The focus is now on enhancing manager capabilities, which are crucial for organisational success. As Sarah Franklin from Lattice noted: "We need to hold ourselves deeply accountable for what the AI is doing and why."
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LEADERSHIP

Politeness stifles employee growth

Dr Christian Marcolli argues that prioritising politeness over honest communication can hinder employee development. A survey by Joi AI found that 58% of ChatGPT users prefer more authentic interactions. Marcolli emphasises that true excellence arises from challenge, not comfort. He advocates for "leadership sparring," a collaborative approach that encourages constructive exchanges. This method fosters bold thinking and psychological safety within teams. Marcolli's new book, Winning Match: Leadership for Game Changers, outlines five principles for effective sparring, aiming to empower leaders to nurture their top talent and drive organisational success.
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INTERNATIONAL

China raises hiring age limit

China's government has increased the maximum hiring age for some civil service roles from 35 to 43. This change aims to combat age discrimination in the job market, where many older workers have faced challenges. The new recruitment plan, published by the central government, also raises the age cap for other candidates to 38. This adjustment follows local government initiatives and comes amid a competitive labour market. "Public calls to eliminate rigid age barriers in government hiring are growing," a spokesperson noted. Additionally, China plans to gradually raise the retirement age to address population ageing.
 
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