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Recent Editions
North America
Human Times
The unemployment rate for U.S. IT workers decreased slightly to 2.8% in April from 3% in March, reflecting targeted hiring by companies to bolster their artificial intelligence initiatives. According to CompTIA, technology firms like Microsoft and Salesforce hired approximately 4,280 workers in April, primarily in technology services and software development roles, as well as in cloud infrastructure and data processing. This hiring trend is partly in preparation for future growth, particularly in areas that support generative AI technologies. Despite this, the broader U.S. job market saw a slowdown, with only 175,000 jobs added in April compared to over 300,000 in March, and the overall unemployment rate increased slightly to 3.9%. Tech companies are also contemplating AI as a cost-effective alternative to hiring, which could impact entry-level IT roles traditionally filled by humans.
Full IssueUK
Human Times
Trade unions have warned Labour not to dilute its package of workers' rights. Unite general secretary Sharon Graham said that crossing a red line would occur if the party does not fully commit to delivering its 'New Deal for Working People.' The plan, proposed by Angela Rayner in 2021, includes radical changes such as banning zero-hour contracts, ensuring regular hours for 12 weeks or more, and making flexible working a right from day one. Shadow ministers are discussing how to address concerns and are expected to seek union approval for the revised plan.
Full IssueUSA
Education Slice
More than a dozen Republican-led states are suing the Biden administration over new Title IX regulations that include protections for transgender students. The Education Department unveiled the final changes to Title IX, which also cover discrimination based on sexual orientation and gender identity. The lawsuits argue that the new regulations are "plainly illegal" and undermine protections for cisgender students. The regulations would also prevent states from enforcing laws that bar transgender student-athletes from competing on sports teams consistent with their gender identity. The legal battle with the White House increases the likelihood that the measures will be blocked in court before taking effect. The administration's Title IX revamp would also bolster nondiscrimination protections for pregnant students and change how schools handle claims of sexual harassment and assault. If the lawsuits are successful, it would deal a significant blow to LGBTQ students, especially in the South where most of the lawsuits were filed. Elections have consequences for the long-term trajectory of any litigation on this matter.
Full IssueUSA
Accountancy Slice
The IRS is planning to increase audit rates for wealthy taxpayers and corporations, according to Commissioner Danny Werfel. The agency aims to raise audit rates by over 50% on wealthy taxpayers with more than $10m in total positive income and nearly triple audit rates on corporations with assets over $250m by 2026. However, Werfel emphasized that audit rates won't increase for small businesses and taxpayers making under $400,000. The IRS is also addressing racial disparities in tax enforcement, following a study that found Black taxpayers were audited at higher rates. The agency is using funding from the Inflation Reduction Act to modernize and improve taxpayer services. The Treasury Department estimates that the IRS could collect over $561bn in overdue taxes over the next 10 years. The IRS plans to hire more personnel and double audit rates on the wealthiest taxpayers. Stable funding is crucial for the IRS to continue technology modernization and taxpayer service improvements.
Full IssueScotland
Legal Matters Scotland
John Swinney has admitted he will consider new approach to gender recognition reform if he is appointed as Scotland’s new first minister. The Gender Recognition Reform (Scotland) Bill proposes to make it easier for individuals to change gender, but it was vetoed by Westminster despite being passed by the Scottish parliament. Asked by Sky News how he would tackle the divisive issue, Swinney said he wanted to “consider what are the best steps to take forward”. He said: “The legislation cannot be put into force because of the legal judgments that have been made, and I believe in the rule of law so I accept decisions, of course, in that respect. What I have assured everybody is that I believe in a good, solid, respectful dialogue about these issues and we have to make sure we handle these matters with care and sensitivity. That’s what I will do.”
Full IssueNorth America
Legal Slice
Law firms are experiencing a strong start in 2024 after a lackluster 2023, with a 1.9% increase in demand for legal services in the first quarter. Billing rates have also risen by 6.6% compared to last year. Midsize law firms have seen significant growth in revenue and profits, with a 5.7% increase in revenue and a 5.8% rise in profits. The growth in demand for legal services is mainly driven by litigation, which saw a 3.8% increase in the first quarter. However, demand for corporate practices remains slow, with only a 0.6% growth. Law firms are investing more in technology, with a 6.6% increase in technology spending. It remains to be seen whether law firms will be able to collect on the higher billing rates imposed in 2024. Realization, which refers to the proportion of billed work that firms collect on, was down in 2023. Technology integration, particularly artificial intelligence, is becoming more prevalent in the legal industry. Overall, law firms are optimistic about the future and are hopeful for continued growth in 2024.
Full IssueEurope
Risk Channel
The CEO of the Financial Conduct Authority (FCA) has been summoned to appear in front of a House of Lords committee as a row over the regulator’s plans to “name and shame” financial services firms under investigation spirals. Nikhil Rathi has defended the plans, arguing that being more transparent about probes will serve as a deterrent. The City roundly condemned the move and the Chancellor also stepped in and urged the FCA to rethink its plans. Now, the Lords' Financial Services Regulation Committee has launched its own inquiry after Rathi failed to respond to a request to pause the implementation of the plans until after peers had properly scrutinised the proposal. Lord Forsyth of Drumlean, chair of the committee, said: “This isn't acceptable.” Meanwhile, a senior lawyer has made a rare call for the government to intervene and overrule the regulator. “This is but the tip of the iceberg,” said Harvey Knight, UK head of the financial services regulatory group at Withers. The FCA is “exceeding its statutory objectives in pursuit of what it considers to be its best interests without any balancing considerations,” he added. Finally, the Labour party said the FCA should listen to the City and ensure “an appropriate balance between enhancing the integrity of the sector while protecting the international competitiveness of the UK.”
Full Issue