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UK Edition
18th February 2026
 
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THE HOT STORY

UK unemployment soars to five-year high

UK unemployment has reached 5.2%, the highest level since early 2021, according to the latest labour market data. The jobless rate increased from 5.1% in the previous quarter, with 130,000 fewer workers on payrolls over the year. Young people, disabled people and men are bearing the brunt of the rise. Earnings growth also slowed, with basic pay rising by 4.2%, down from 4.4%. In London, the unemployment rate surged to 7.6%, nearly double the 4% rate in the south east. Youth unemployment has reached 18.8% in the capital, compared with 14% country-wide, with the number of 18-24 year olds out of work up by 80,000 on the quarter to 575,000. Liz McKeown at the Office for National Statistics also notes that private sector wage growth continues to slow and is at its lowest rate in five years, while public sector pay growth also slowed but remains elevated. Commenting on the figures, Suren Thiru, economics director at the Institute of Chartered Accountants, said: "The UK's jobs market is continuing to come apart at the seams as the stifling squeeze from spiralling labour costs pushes more businesses to pivot from simply freezing recruitment to actively cutting jobs."
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LEGAL

HR teams are drowning in slop grievances

Disaffected employees can now effortlessly create complaints using AI, leaving firms with the time-consuming job of responding. Employers are advised to intervene in problems before employees start considering an AI complaint.
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WORKFORCE

John Lewis invests £108m in staff pay

John Lewis has announced a £108m investment in staff pay, increasing shop floor wages by 6.9%. The move will raise full-time partners' salaries by £1,600 annually. Despite reporting a tripling of losses to £88m in September, the retailer said it remains committed to investing in wages. The minimum wage will rise to £14.80 in London and £13.25 elsewhere in the UK. Helen Webb, chief people officer, said: "Our partners are the heartbeat of our business." The decision on reinstating partner bonuses, suspended since 2020, will be made next month.

AI 'used as excuse for job cuts'

Experts are raising concerns that companies are using AI as a justification for redundancies. In 2026, over 25,000 jobs were lost in the tech sector, reversing pandemic hiring trends. Fabian Stephany from the Oxford Internet Institute said that firms may be using AI as a "smokescreen" for previous over-hiring. Philippe Aghion, a Nobel Prize-winning economist, has echoed this sentiment, suggesting that job cuts attributed to AI are often exaggerated. Joanne Thomas from the Usdaw union has called for regulations to support workers amid these changes.
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ECONOMY

TUC urges Bank of England to cut rates

The Trades Union Congress (TUC) is urging the Bank of England to reduce interest rates to stimulate economic growth. TUC General Secretary Paul Nowak said: "The Bank of England has a crucial role to play here. Last year they were overly cautious and too slow to act. They should go for growth with a sequence of quick-fire cuts this year." He stressed that lower rates would benefit households and businesses. The Guardian notes that recent data shows UK consumer demand has lagged behind 32 of 37 OECD countries, contributing to stagnant economic growth. The Bank's monetary policy committee recently voted 5-4 to maintain rates, but a cut is anticipated in March.
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REGULATION

Euro Car Parks hit with £473k CMA fine

The UK's Competition and Market Authority (CMA) has fined Euro Car Parks £473,000 for failing to respond to seven information requests over three months. These came by registered post, emails and hand delivered letter. This penalty marks the first use of new fining powers granted to the watchdog in 2024. Euro Car Parks claimed it blocked the CMA's emails, mistaking them for scams, but the regulator deemed this to be unreasonable excuse. Hayley Fletcher, the CMA's senior director of consumer enforcement, said: "It is a legal obligation to comply . . . [it is] not optional." The company sought a High Court injunction to avoid being named, but this was denied.
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LEADERSHIP

Christine Lagarde to leave ECB before end of eight-year term

European Central Bank (ECB) President Christine Lagarde is expected to step down from her role before her eight-year term ends in October 2027, the Financial Times reports. It isn’t clear yet when she may exit, the report said. “President Lagarde is totally focused on her mission and has not taken any decision regarding the end of her term,” an ECB spokesperson said in an emailed statement.
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TECHNOLOGY

Apple sets March 4th launch event for new Macs and devices

Apple has announced a product launch event on March 4th, where it is expected to unveil several new devices, including updated MacBook Pro models. The company has invited media to in-person events in New York, Shanghai and London, suggesting a smaller-scale showcase rather than a traditional keynote at its California headquarters. Apple is preparing a range of new releases for the first half of 2026, including refreshed MacBook Air models, a lower-cost MacBook, new iPads and an updated mid-tier iPhone 17e.
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INTERNATIONAL

Goldman Sachs plans to drop DEI from board-candidate criteria

Goldman Sachs plans to eliminate race, gender identity, sexual orientation, and other diversity-related factors from the criteria its board uses to assess prospective candidates. The bank's decision follows a request that it removes the DEI criteria from the conservative activist nonprofit National Legal and Policy Center, a small shareholder in the lender. The Wall Street Journal notes that the DEI climate has changed radically for companies in recent years. A turning point was President Trump’s executive order last year directing federal departments and agencies to launch civil investigations into corporate DEI programs.

China issues labour guidance for platform firms

China's Ministry of Human Resources and Social Security, alongside six other departments, has issued new guidelines to protect workers in the gig economy. The initiative targets companies including Meituan, Didi Chuxing, and YTO Express. Authorities emphasised the need for these firms to fulfil their employer responsibilities and enhance labour management practices. The government said it aims to stabilise and expand employment by safeguarding the rights of individuals engaged in flexible work arrangements. "We will do more to protect the rights and interests of people in new forms of employment," a spokesperson said.

GE trains robots for repairs

GE Aerospace is upgrading its Singapore repair hub with automation, digital tools, and AI to address overloaded engine repair queues and scarce parts. Veteran technician Suresh Sinnaiyan is teaching a robot to replicate the delicate manual “blending” of compressor blades, a task requiring “eye, feel and coordination.” GE says the broader effort could total up to $300m and raise repair volume by 33% without expanding floor space. CEO Larry Culp said, “It’s not about sprinting at quarter’s end . . . It is making every hour and every day count.”
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OTHER

Starmer urges parents to check vaccines are up to date

Sir Keir Starmer has urged parents to ensure their children are fully immunised following a measles outbreak that is spreading across schools in north London. The Prime Minister posted on X: "Vaccines are safe, effective and can be life saving. We're urging all parents to check their children are up to date with their recommended vaccinations." Enfield has recorded 34 confirmed cases between 1 January and 9 February - more than a third of England’s 96 cases so far this year - after the UK lost its measles elimination status in 2024 amid declining vaccination rates. Health officials said one in five infected children required hospital treatment, all of whom were not fully vaccinated.
 
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