Connect with us

Published

on

The Office for National Statistics (ONS) has admitted efforts to overhaul unreliable data on Britain’s jobs market may not be ready until 2027.

The ONS confirmed it is now “unlikely” it will be able to introduce a revamped version of its Labour Force Survey (LFS) – which is the official measure of employment and unemployment in the UK – by mid-2025, leaving policymakers in the dark over the true state of the UK workforce.

Money blog: Christmas decorations could slow down your WiFi

Governor of the Bank Andrew Bailey said it was “a substantial problem” that the exact numbers of people at work are unknown in part due to fewer people answering the phone when the ONS call.

While the labour market is going to be “the key” to future rate cuts, another member of the interest rate decider Professor Alan Taylor told the MPs of the Treasury Committee last month: “We don’t necessarily have the best statistics there.”

The government too has built policy around the belief that the UK has a high number of people out of work and not looking for work.

Just last week the government announced £240m for reforms to “get Britain working”.

Please use Chrome browser for a more accessible video player

‘The benefits system can incentivise and disincentivise work’

But on the same day, the Bank’s chief economist said labour force participation “has now reached the point where participation is broadly in line with a natural level it should be”.

The UK had been thought to be an outlier compared to its neighbours in that the number of people in work is lower than before the COVID-19 pandemic.

Respected thinktank the Resolution Foundation had also said that there was no rise in inactivity based on HM Revenue & Customs data and that employment had been underestimated by 930,000 since 2019.

Also revised due to changes in population is the employment estimate, which is 0.1% higher than first thought, the ONS said.

The ONS said it continued “to advise caution when interpreting changes” in things like unemployment and economic inactivity.

More than a year ago in October 2023, the ONS temporarily suspended publication of its official labour force survey due to low response rates after the pandemic and began releasing experimental estimates that relied on tax and other data sources.

Continue Reading

Business

TikTok puts hundreds of UK jobs at risk

Published

on

By

TikTok puts hundreds of UK jobs at risk

TikTok is putting hundreds of jobs at risk in the UK, as it turns to artificial intelligence to assess problematic content.

The video-sharing app said a global restructuring is taking place that means it is “concentrating operations in fewer locations”.

Layoffs are set to affect those working in its trust and safety departments, who focus on content moderation.

Unions have reacted angrily to the move – and claim “it will put TikTok’s millions of British users at risk”.

Figures from the tech giant, obtained by Sky News, suggest more than 85% of the videos removed for violating its community guidelines are now flagged by automated tools.

Meanwhile, it is claimed 99% of problematic content is proactively removed before being reported by users.

Executives also argue that AI systems can help reduce the amount of distressing content that moderation teams are exposed to – with the number of graphic videos viewed by staff falling 60% since this technology was implemented.

More from Money

It comes weeks after the Online Safety Act came into force, which means social networks can face huge fines if they fail to stop the spread of harmful material.

The Communication Workers Union has claimed the redundancy announcement “looks likely to be a significant reduction of the platform’s vital moderation teams”.

In a statement, it warned: “Alongside concerns ranging from workplace stress to a lack of clarity over questions such as pay scales and office attendance policy, workers have also raised concerns over the quality of AI in content moderation, believing such ‘alternatives’ to human work to be too vulnerable and ineffective to maintain TikTok user safety.”

John Chadfield, the union’s national officer for tech, said many of its members believe the AI alternatives being used are “hastily developed and immature”.

He also alleged that the layoffs come a week before staff were due to vote on union recognition.

“That TikTok management have announced these cuts just as the company’s workers are about to vote on having their union recognised stinks of union-busting and putting corporate greed over the safety of workers and the public,” he added.

Under the proposed plans, affected employees would see their roles reallocated elsewhere in Europe or handled by third-party providers, with a smaller number of trust and safety roles remaining on British soil.

The tech giant currently employs more than 2,500 people in the UK, and is due to open a new office in central London next year

A TikTok spokesperson said: “We are continuing a reorganisation that we started last year to strengthen our global operating model for Trust and Safety, which includes concentrating our operations in fewer locations globally to ensure that we maximize effectiveness and speed as we evolve this critical function for the company with the benefit of technological advancements.”

Continue Reading

Business

‘Today is payday’: Union warns wages for workers at liquidated steel company must be a priority

Published

on

By

'Today is payday': Union warns wages for workers at liquidated steel company must be a priority

A union has welcomed the government taking over a troubled steel company, but is warning that payment for workers must be a top priority.

Speciality Steels UK – which employs almost 1,500 people – was pushed into compulsory liquidation on Thursday, and is the third-largest producer in the country.

It is part of the Liberty Steel empire owned by metals tycoon Sanjeev Gupta, and operates from sites in Rotherham and several other locations across South Yorkshire.

The government has stressed it will cover staff wages and the running costs of the plants until a buyer is found.

The Liberty Steel plant in Rotherham
Image:
The Liberty Steel plant in Rotherham

Speaking to Sky’s Anna Jones, Community Union National Secretary Alun Davies said workers are “concerned” about the developments.

He added: “Today is payday – but because the bank accounts were closed, I think the special managers and the HR team now are working with the unions to get that pay in today or as soon as they can.”

With a bank holiday weekend fast approaching, workers may only receive their wages on Tuesday unless payments are made as a matter of urgency.

More from Money

Mr Davies said he is confident that the plants have a future, telling Sky News: “If we use British-made steel for British infrastructure projects, it creates jobs, it grows economies and it gets our economy back on track, which is what this Labour government is trying to do.”

While he said government investment is valuable, the union official cautioned: “If we can find a decent buyer – a reputable steel company that knows what they’re doing – we’re open to all options.

“We’re not going to just say nationalise or part-nationalise, it’s what’s best for the business and gets the business up and running as soon as possible … if the government takes ownership, that is a significant cost to the taxpayer.”

Alun Davies
Image:
Alun Davies

Mr Davies explained that many workers have been staying at home and on 85% pay, which is having a big impact on their mental health and wellbeing.

In a statement, Community’s General Secretary Roy Rickhuss described it as an “extremely worrying time” for the union’s members – and said jobs must be protected in the event of restructuring or a transition to new ownership.

Calling for 12 months of pension contributions to be secured alongside this month’s paychecks, he added: “Steelworkers at Liberty Steel are highly skilled and hugely experienced; they are quite frankly irreplaceable and will be critical to delivering future success for the businesses.”

Mr Rickhuss said the union has received “firm assurances” that efforts to address pay and pensions are under way – and welcomed the government’s intervention.

“However, in taking control of the business the government has assumed responsibility for our livelihoods and our communities, and we will of course be holding them to account,” he added.

Read more business news:
US stocks fall for fifth day in a row
Consumer confidence at highest point this year

Please use Chrome browser for a more accessible video player

April: How does a steel furnace work?

Bosses at Speciality Steels have said the move to wind up the business is “irrational” as a plan had been presented to courts that would have led to new investment in the UK steel sector.

“Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution,” chief transformation officer Jeffrey Kabel added.

On Thursday, a government spokesperson said ministers “remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK”.

Continue Reading

Business

Jackson Hole summit: US stocks fall for fifth day in a row ahead of key Fed speech

Published

on

By

Jackson Hole summit: US stocks fall for fifth day in a row ahead of key Fed speech

US stocks have fallen for five days running as traders nervously await a speech from Federal Reserve chairman Jerome Powell.

Central bankers are gathering for an annual summit in Jackson Hole, Wyoming, where Mr Powell could indicate whether interest rates will be cut soon.

The Fed hasn’t reduced the cost of borrowing since December – despite repeated calls from Donald Trump to do so.

By contrast, the European Central Bank has slashed rates four times in 2025, with the Bank of England opting for three cuts so far this year.

Federal Reserve chairman Jerome Powell. Pic: Reuters
Image:
Federal Reserve chairman Jerome Powell. Pic: Reuters

Money blog: Top tips for entering US under Trump

The US president has nicknamed the Fed chairman “Too Late” Jerome Powell on social media – and has repeatedly called for his resignation.

But Mr Powell has argued that interest rates can only be lowered when there are clear signs that inflation is returning to its 2% target.

Today will mark his final keynote speech at Jackson Hole before his eight-year tenure at the Federal Reserve ends in May 2026.

Past addresses have been known to move the markets, with reaction often amplified because of lower trading volumes during the summer months.

Figures from the CME FedWatch tool show expectations for a US interest rate cut when policymakers next meet in September are on the decline.

One week ago, the probability of a 0.25 percentage point cut was priced in at 85.4%. But that fell to 82.4% on Thursday – and has dropped further to 73.3% at the time of writing.

It comes as other senior officials within the Federal Reserve, speaking on the sidelines of the three-day summit in Jackson Hole, continued to express caution.

Read more business news:
Major steel producer pushed into compulsory liquidation
London Underground workers to strike for seven days

Please use Chrome browser for a more accessible video player

1 August: New tariffs threaten fresh trade chaos

Beth Hammack, president of the Cleveland Fed, told Yahoo Finance: “With the data I have right now and with the information I have, if the meeting was tomorrow, I would not see a case for reducing interest rates.”

Of particular concern is the impact that Donald Trump’s tariffs are having on inflation – both in terms of costs for businesses, and what consumers ultimately pay.

Just this week, Walmart – the world’s biggest retailer – warned tariffs are squeezing its profit margins and leading to higher prices at the till.

Continue Reading

Trending