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UK Edition
17th April 2024
 
THE HOT STORY
Unemployment jumps as UK jobs market stalls
The UK jobs market is showing signs of stalling as the number of people out of work grew, according to new figures from the Office for National Statistics (ONS). The unemployment rate increased to 4.2% between December and February - the highest level for six months. Meanwhile, the rate of people with a job dipped and the economically inactive - those not in work or looking for employment - ticked higher. Overall, the ONS said the UK's unemployment rate rose from 3.9% in the three months to January and surpassed economists' forecast of an increase to 4%. In total, there were 1.4 million unemployed people in the UK between December and February, it said. However, other figures showed that while average wage growth, excluding bonuses, edged down from 6.1% to 6% it remained far above forecasts. And, when taking inflation into account, real wages rose by 1.9% in the three months to February. This was the highest since the three months to September in 2021. Additionally, the number of people out of work due to long-term sickness in the UK has reached a new record high, with over 2.8m individuals affected. Alexandra Hall-Chen, principal policy advisor at the Institute of Directors, said the rise was a “worrying development” which had the “potential to exacerbate persistent skills and labour shortages in the UK.”
HEALTH & WELLBEING
3.7m workers in England will have major illness by 2040, study finds
A record 3.7m workers in England will have a major illness by 2040, according to a report by the Health Foundation charity. On current trends, 700,000 more working-age adults will be living with high healthcare needs or substantial risk of mortality by 2040 – up nearly 25% from 2019 levels, according to the research. The Health Foundation warned that without more measures to improve working-age health, the government’s target to improve healthy life expectancy by five years by 2035 will be missed.
WORKFORCE
Over 40% of first-generation graduates rely on financial support
Over 40% of graduates who were the first in their family to attend university rely on financial support, according to a survey by Universities UK (UUK). The figure of 41% is equivalent to around 1.1m 24 to 40-year-olds in England and Wales. The survey also found that 14% of these graduates would have gone to a different university or lived with their family to save money if they hadn't received financial assistance. Rising cost-of-living expenses, rental accommodation, and inflation were identified as barriers to attending university. UUK is calling for the reinstatement of maintenance grants and increased support for future students. The survey also revealed that over a third of non-graduates were put off university due to financial concerns.
WORKPLACE
Leisure centres scrap biometric systems amid data watchdog clampdown
Dozens of companies including national leisure centre chains are reviewing or pulling facial recognition technology and fingerprint scanning used to monitor staff attendance. The move comes after the Information Commissioner’s Office (ICO) in February ordered a Serco subsidiary to stop using biometrics to monitor the attendance of staff at leisure centres it operates and also issued more stringent guidance on the use of facial recognition and fingerprint scanning.
CORPORATE
PwC to investigate allegations over collapse of Evergrande
PwC is planning to investigate an anonymous letter that accuses the firm of turning a blind eye to its audit of Chinese property giant Evergrande. The letter, signed by unnamed partners, claims the Big Four auditor failed to address the financial fraud at Evergrande for over a decade. PwC Hong Kong has rejected the allegations, stating that the letter contains inaccurate statements. The firm has reported the incident to the relevant authorities and is taking it seriously. Evergrande, which filed for bankruptcy last year, has been accused of fraudulently inflating its revenues. Chinese authorities are now scrutinising PwC's role in the alleged accounting fraud. PwC resigned as Evergrande's auditor in 2021 due to disagreements over the developer's accounts. The investigation is ongoing.
LEGAL
Judge rules that accusing a worker of 'playing the race card' is racist
Accusing a worker of "playing the race card" has been deemed racist by a judge in a case involving an army musician. Dwight Pile-Grey, a Rastafarian lance sergeant and French horn player in the Grenadier Guards, sued the Ministry of Defence after being barred by a guard from entering his barracks while wearing civilian clothes. The guard accused Pile-Grey of "playing the race card" when he complained. The judge ruled that these comments were discriminatory and backed Pile-Grey's claim for harassment and victimisation. The tribunal stated that the comment was connected to race and race must have been the reason for the treatment. Pile-Grey's complaints were upheld; he has since left the army. A Ministry of Defence spokesman stated that the army does not tolerate discrimination and has improved its complaints system and support mechanisms.
Saying you are a ‘non-feminist’ at work could be act of discrimination, tribunal rules
An employment tribunal has dismissed a manager's claim that he was forced out of his job for resisting an "agenda to promote women." The judge ruled that being a "non-feminist" at work is an act of discrimination. The manager alleged that he was treated unfairly by his female boss and lost his job because he did not adhere to feminism. However, the tribunal found his behaviour unreasonable and ordered him to pay £20,000 in legal costs. The judge stated that the belief in non-feminism conflicts with the rights of others and is not compatible with human dignity. The tribunal concluded that the manager's dismissal was unrelated to his non-feminist beliefs.
ECONOMY
UK set for modest economic recovery, IMF says
The UK economy is expected to stage a modest recovery next year, according to new forecasts from the IMF. Growth is projected to be 0.5% this year and 1.5% in 2025 - a slower expansion than previously forecast. The UK will be the second-slowest performing major economy in this year, with only Germany performing more poorly. The IMF expects continued disinflation to ease financial conditions and support a recovery. The IMF said consumer price inflation in the UK would continue to fall this year, prompting a cut in interest rates from 5.25% to 4.6% by the end of the year and to 3.5% by the end of 2025.
INTERNATIONAL
US employers must accommodate workers' pregnancies, including abortion and contraception, says EEOC
US employers are now required to accommodate workers' pregnancies, including abortion and contraception, according to a new rule by the US Equal Employment Opportunity Commission (EEOC). The rule implements the Pregnant Workers Fairness Act, which mandates employers to modify job duties or provide time off for workers with pregnancy-related limitations. The rule has faced criticism from Republicans and religious groups who argue that it should not cover workers who choose to have abortions or use birth control. The lack of a religious exemption could potentially lead to a legal challenge. The EEOC's rule will be published on Friday and take effect 60 days later. It applies to employers with 15 or more employees and includes accommodations such as limits on heavy lifting, part-time work schedules, additional breaks, modified equipment, remote work, and paid or unpaid leave. Advocacy groups have supported the rule, stating that it removes obstacles for pregnant workers in the workforce. However, critics argue that some accommodations may be impractical for certain jobs and workplaces.
Singapore instructs all employers to consider employees' flexi-time requests
Workers in Singapore will have the option to request more work-from-home days and flexible work timings starting from December 1. The new guidelines, announced by the Tripartite Alliance for Fair and Progressive Employment Practices, aim to retain talent by providing employees with greater flexibility. While the guidelines are not legally enforceable, all companies in Singapore are required to establish a process for employees to submit formal flexible-working arrangement requests. Employers can reject requests if they would significantly impact productivity or increase costs, but not based on company traditions or management preferences. Singapore's move aligns with other countries that require businesses to consider flexible work requests. Retaining flexible arrangements may benefit businesses, as they have been shown to attract and generate more productivity.
Italian prosecutors seize €64.7m from Carrefour unit in VAT fraud probe
Italian prosecutors have seized €64.7m from Carrefour's Italian unit, GS spa, as part of an investigation into VAT fraud and labour exploitation. The supermarket chain and four of its directors are accused of evading €64.72m in VAT between 2018 and 2022. The alleged fraud involved outsourcing logistics and transport services to "false cooperatives" that do not pay taxes or social security contributions. The practice has been the focus of previous investigations by Milan prosecutors. Other companies mentioned in the investigation include DHL Supply Chain, Uber, UPS, Fiera Milano, and Esselunga. The investigation claims that GS spa illegally deducted over €64m in VAT, while the cooperatives evaded tax and social security payments worth around €110m. The probe states that GS spa's conduct has resulted in the exploitation of workers and significant damage to the inland revenue. Carrefour Italia, the parent company, has not yet commented on the matter.
All Dutch trains to stop in protest against attacks on staff
All trains in the Netherlands will come to a halt for three minutes on Saturday night in protest against attacks on ticket collectors and other rail staff. The action, initiated by the NS and railway workers unions, follows a serious incident where a female ticket collector was assaulted. A minor has been arrested in connection with the attack.
OTHER
Teenagers' internet addiction linked to high school absence
Internet addiction in teenagers, particularly girls, is linked to high rates of school absence, according to a study. The research, based on data from a survey in Finland, found that excessive internet use was associated with neglecting family and friends, as well as lack of sleep and anxiety when not online. Girls were 96% more likely than boys to be classified as excessive internet users. The study also revealed that excessive internet use increased the risk of truancy and medical school absences. The researchers suggested that digital media may tempt teens to stay home from school and hinder learning. The study emphasised the importance of promoting health and educational attainment in schools. Factors such as good relationships with parents and adequate sleep and exercise were found to be protective against truancy. 
 


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