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UK Edition
21st January 2026
 
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THE HOT STORY

Young workers are most worried about AI affecting jobs

Four in five workers believe ‌artificial ​intelligence is going to affect ‌their daily tasks in the workplace, according to a survey ‍ of 27,000 workers and 1,225 employers that covered more than 3 million job postings across 35 markets conducted by Randstad. Gen Z were found to be among ​those most concerned as job ​vacancies requiring "AI agent" skills surged by 1,587%, the survey showed. The annual 'Workmonitor' report by the recruitment agency indicated that AI and automation are increasingly replacing low-complexity, transactional roles.
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WORKFORCE

Reeves plans to refund some visa fees

The Chancellor will announce changes at the World Economic Forum in Davos to attract skilled workers to the UK. Rachel Reeves plans to refund visa fees for global businesses and expedite the sponsorship process for migrant workers. Reeves said: "Some countries give you a platform, but Britain gives you momentum." She will also highlight Labour's investments in steel, clean energy, and transport infrastructure in northern England.

UK employment drops as wages stagnate

UK employment fell sharply at the end of 2025 while wage growth slowed, signalling a weakening labour market. Figures from the Office for National Statistics show payroll employment dropped by 43,000 in December, the biggest monthly fall since 2020, with losses concentrated in retail and hospitality. Unemployment remained at a four-year high of 5.1%, while private-sector pay growth slowed to its weakest pace in five years. Employers have blamed uncertainty and rising costs following last year’s Budget by Rachel Reeves, including higher national insurance and looming business-rates increases. The industry body UK Hospitality warned that pubs and hospitality firms face mounting pressure, calling for urgent action to prevent further job losses, even as workforce participation showed modest improvement.
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STRATEGY

Asda's outsourcing move threatens 1,200 jobs

Asda has announced plans that could put hundreds of warehouse jobs at risk as it seeks to cut costs by outsourcing parts of its logistics operation. The supermarket plans to transfer online delivery work for its George clothing brand to DHL, affecting around 1,200 roles. Staff would move under TUPE regulations, but unions warn many workers may not accept the change, leading to job losses. The changes affect George clothing depots in Lymedale (Staffordshire), Washington (North East) and Brackmills (Northamptonshire), with operations consolidated at a DHL site in Derby. The GMB criticised the move, citing its impact on families and communities. Asda said the outsourcing would support growth of George.com and aims to make George the UK’s largest clothing retailer by volume.
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TECHNOLOGY

Many companies struggle to unlock benefits from AI

A PwC poll of more than 4,000 chief executives from 95 countries indicates that just over a quarter (26%) of firms have managed to drive down costs following investment in artificial intelligence, while 30% have boosted their revenue as a result of spending on the technology. More than half (56%) of the CEOs surveyed said AI hasn't produced revenue or cost benefits for their businesses to date. "A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots," said Mohamed Kande, PwC's global chairman. "That gap is starting to show up in confidence and competitiveness - and it will widen quickly for those that don't act."
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ECONOMY

IMF warns of trade tension risk to global growth

Trade tensions and a reversal in the artificial intelligence boom are among the main risks to global economic growth, the International Monetary Fund (IMF) has warned in its World Economic Outlook update, in which it nevertheless described the global economy as "steady," with growth expected to remain "resilient" this year. The IMF's forecast was produced ahead of US President Donald Trump's threat at the weekend to impose tariffs on eight European countries opposed to his proposed takeover of Greenland. The fund also said the independence of central banks was "paramount" for global economic stability and growth. The IMF said global growth was projected to reach 3.3% this year - an increase from its previous forecast of 3.1% - before slowing slightly to 3.2% in 2027.
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LEADERSHIP

M&S tech chief resigns months after costly cyber attack

Marks & Spencer’s chief technology officer, Josie Smith, is stepping down just 18 months into the role and nine months after a major cyber attack crippled the retailer’s online operations. The breach, carried out by hacking group Scattered Spider in April 2025, halted online sales for weeks and cost the company hundreds of millions of pounds. Smith, whose departure follows the exit of chief digital and technology officer Rachel Higham four months ago, will be succeeded by Darren Gibson, currently head of fashion, home, and beauty tech transformation. M&S also announced that chief product officer Krista Nordlund will leave in July to return to the US.
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DIVERSITY, EQUITY & INCLUSION

Diversity drives better science, says expert

Dr Ritu Dhand, chief scientific officer at academic publishing company Springer Nature, argues that diversity, equity, and inclusion (DEI) policies enhance scientific research. Speaking to the Times, she said that these policies are not politically motivated but lead to better science and drugs, observing: "More diverse voices being published in research literature leads to more diverse collaborations." Dhand highlighted the need for collaboration between Western and Asian scientists, noting that Chinese researchers have surpassed their Western counterparts in both quantity and quality of research.
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INTERNATIONAL

Capgemini plans to cut up to 2,400 French jobs

IT services group Capgemini plans to cut up to 2,400 jobs in France, or about 6% of its local workforce. The plan will proceed only on a voluntary basis and is subject to negotiations with unions, Capgemini said.  The company said it would offer offer internal retraining programmes for workers in units affected by shifting client demand. 

Lawyers are ‘endangered’ in Donald Trump’s America, international group warns

The Day of the Endangered Lawyer, an annual event every January 24 to raise awareness of risks to members of the profession, has chosen the US as its focus country for 2026. The group says the selection reflects serious concerns of escalating attacks against lawyers in 2025, including executive orders targeting law firms, harassment, political reprisals and discriminatory measures undermining the independence of the legal profession.

Petroperu workers launch three-day strike over privatisation plan

At least 30% of 2,200 unionised workers at Peru's state-run oil company, Petroperu, have launched a 72-hour strike to protest a plan to privatise parts of the firm. Petroperu however said that all its facilities were operating normally, and observed that Peru's labour ministry had ruled the strike call "inadmissible." Jose Luis Saavedra, general secretary of the administrative workers' union, said: "The speed with which the government wants to privatise Petroperu is striking."
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OTHER

Education is the main dividing line in British politics

Research from the National Centre for Social Research (NatCen) reveals that education significantly influences political attitudes in the UK. The Demographic Divides report indicates that individuals without A-level qualifications are more than twice as likely to support rightwing parties compared to those with university degrees. The study highlights that 65% of degree holders believe diversity strengthens society, while only 30% of those with lower qualifications share this view. Alex Scholes, a research director at NatCen, remarked: "In Britain, education stands out as the most important dividing line."
 
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