{"id":61367,"date":"2025-08-12T10:14:07","date_gmt":"2025-08-12T10:14:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/61367\/"},"modified":"2025-08-12T10:14:07","modified_gmt":"2025-08-12T10:14:07","slug":"business-news-live-uk-unemployment-at-four-year-high-with-firms-feeling-the-heat-from-raft-of-cost-pressures","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/61367\/","title":{"rendered":"Business news live: UK unemployment at four-year high with firms \u2018feeling the heat from raft of cost-pressures\u2019"},"content":{"rendered":"

<\/a>Keeping money from your partner? You’re not alone, says expert<\/p>\n

More than half of Brits (51%) are \u201ckeeping secrets\u201d about money, says Shawbrook Bank after a recent survey – with almost a quarter (22%) saying they keep financial details from their partner.<\/p>\n

That\u2019s not always for negative reasons, with 24% saying they are saving on the quiet to surprise someone else.<\/p>\n

Sally Conway, Savings Expert at Shawbrook Bank said: \u201cIt\u2019s clear that many of us are keeping money secrets – whether it\u2019s to treat ourselves, surprise a loved one, or simply because we don\u2019t think it\u2019s worth sharing. But when it comes to savings, being more open and proactive can really pay off.<\/p>\n

\u201cKeeping quiet about our finances often goes hand-in-hand with not taking action, like staying loyal to the same bank or leaving money in low-interest accounts. Even a small increase in interest rates can have a significant long-term impact. By being more open and engaged with our savings and with the right account, we can ensure our money is working as hard as possible. And that\u2019s one secret worth sharing.\u201d<\/p>\n

Karl Matchett12 August 2025 10:58<\/p>\n

<\/a>US-China deal extension offers certainty for businesses<\/p>\n

US firms are likely to benefit from pre-Christmas certainty in a boost overall for global economy, after an extension was agreed between Donald Trump and China over a trade deal.<\/p>\n

The extension should allow firms to plan and buy in from overseas ahead of the important Christmas period, without fears of raised tariffs making products more expensive.<\/p>\n

Susannah Streeter, head of money and markets, Hargreaves Lansdown, explains the situation:<\/p>\n

\u201cThere\u2019s more optimism in the air as a tariff truce between the US and China holds, with hopes the global economy will withstand the trade blow a little better.<\/p>\n

\u201cOil prices have crept higher in expectation of higher demand for energy around the world. The FTSE 100 has opened higher, even though the UK labour market shows more signs of deterioration. Nevertheless, the picture is broadly stable, and investors appear to be taking a glass half full approach to the snapshot.<\/p>\n

\u201cA longer-lasting trade deal with between China and the US looks to be on the cards, after Trump granted another extension to talks amid a warming up of relations between the two nations.<\/p>\n

\u201cThe delay on imposing crippling US tariffs on Chinese goods will be welcome news, especially for American retailers in the run-up to the crucial Christmas season. It will enable companies to import clothing electronics and toys at a lower tariff rate of 30%, and will provide much needed certainty, at least for the short term, on costs.\u201d<\/p>\n

Karl Matchett12 August 2025 10:22<\/p>\n

<\/a>Looking for a new job? Prepare to find it tougher, says expert<\/p>\n

As noted earlier, it\u2019s not just that unemployment remains at elevated levels – the number of vacancies they can turn to is also diminishing.<\/p>\n

Danni Hewson, AJ Bell head of financial analysis, explains the dilemma businesses are facing right now.<\/p>\n

\u201cIn a nutshell, if you are looking for a job today, you\u2019re going to find it much tougher than you would have just a year ago,\u201d she said.<\/p>\n

\u201cFirms have had to shoulder big tax and wage increases; they\u2019re worried that further tax hikes could be coming down the track and they\u2019re being cautious.<\/p>\n

\u201cThat caution is manifesting itself in recruitment decisions. They\u2019re putting off taking on new staff and they\u2019re not replacing many of those who leave.<\/p>\n

\u201cThere will be plenty of speculation about the role AI might be playing in those decisions, but money will be at the forefront of employers\u2019 minds and the cost of labour has weighed on firms\u2019 ability to grow.<\/p>\n

\u201cIt\u2019s a slow erosion rather than a seismic shock, but the cooling trend will undermine any expectation that the supercharged growth that the government promised just a year ago might be rediscovered at the back end of the year.<\/p>\n

\u201cIt\u2019s not surprising that the decline has been concentrated in the narrow-margined retail and hospitality sectors.<\/p>\n

\u201cThere are some areas of growth, in particular the numbers employed in health and social work has increased but that has been offset by declines elsewhere.\u201d<\/p>\n

Karl Matchett12 August 2025 10:05<\/p>\n

<\/a>What jobs market data means for pensions<\/p>\n

As a reminder, the triple lock on state pensions means it rises each year by whichever is highest out of: inflation, wage growth or 2.5%.<\/p>\n

That means today\u2019s wage data is important and will factor in to potential calculations for the state pension\u2019s change in payments.<\/p>\n

\u201cThis isn\u2019t the crunch month for the triple lock, but we\u2019re not far off now,\u201d explained Sarah Coles, head of personal finance at Hargreaves Lansdown.<\/p>\n

\u201cTotal pay is up 4.6% in the year to April-June, and it\u2019s the May-July figure that counts for the triple lock. Pay growth has eased in recent months, and if this trend continues, we can expect wage inflation to be between 4% and 4.5% when it counts.<\/p>\n

\u201cGiven that the Bank of England forecasts inflation at 4%, we might expect the state pension to rise by between 4% and 4.5% – to between \u00a312,451 and \u00a312,512.<\/p>\n

\u201cThis would bring it within touching distance of the personal allowance \u2013 so anyone with even a very modest personal pension income could end up paying income tax.\u201d<\/p>\n

Karl Matchett12 August 2025 09:45<\/p>\n

<\/a>Growing labour market turmoil unlikely to trigger September rate cut<\/p>\n

Jobs figures released today make it unlikely we\u2019ll see an interest rate cut by the Bank of England next month, the Institute of Chartered Accountants in England and Wales say.<\/p>\n

We\u2019ll preface this by laying out: very few analysts have been expecting one straight after the August cut.<\/p>\n

That was even less likely following the two-vote close call we got last week.<\/p>\n

A quarterly rate cut has been the theme all year, making November always the more likely date to look at for the next one.<\/p>\n

Still, the ICAEW are a noted organisation and the explanation behind jobs cuts is well worth a note.<\/p>\n

Suren Thiru, ICAEW Economics Director, said:<\/p>\n

\u201cThese figures signal growing turmoil in the UK labour market, with April\u2019s leap in employment costs and a flagging economy pushing more businesses to actively cut headcount and cap pay awards.<\/p>\n

\u201cWage growth is likely to weaken over the course of the year as softening economic conditions, rising redundancies and elevated staffing costs increasingly hinder pay settlements.<\/p>\n

\u201cThe UK jobs market is facing more pain in the coming months with higher labour costs likely to lift unemployment moderately higher, particularly given growing concerns over more tax rises in this Autumn\u2019s Budget.<\/p>\n

\u201cWhile these disheartening figures will reassure rate-setters that last week\u2019s policy loosening was the right call, the pace at which the labour market is currently cooling is unlikely to be sufficient to prompt another rate cut in September.\u201d <\/p>\n

Karl Matchett12 August 2025 09:30<\/p>\n

<\/a>Recruitment is in a doom loop \u2013 there\u2019s only one thing for it, chancellor\u2026<\/p>\n

As a KPMG study lays bare years of falling job openings, and with the unemployment figure refusing to shrink, Britain\u2019s bosses are stuck in hiring limbo that only Rachel Reeves can get them out of, says James Moore…<\/p>\n

Karl Matchett12 August 2025 09:13<\/p>\n

<\/a>UK unemployment remains at four-year high with \u2018fewer job opportunities\u2019 in retail and hospitality<\/p>\n

Unemployment<\/a> rates remained the same and job vacancies fell – but annual growth in earnings grew over the past three months to continue to paint a difficult picture for UK businesses.<\/p>\n

The Office for National Statistics (ONS) said the rate of UK unemployment struck 4.7 per cent in the three months to June. It was the same as the previous three-month period, which had been highest level since June 2021.<\/p>\n

Meanwhile, average earnings growth, excluding bonuses, remained at 5 per cent for the period.<\/p>\n

It came as UK job vacancies tumbled by 44,000 over the three months to July to 718,000 \u2013 the lowest number of job openings since April 2021.<\/p>\n

While fewer job opportunities would of course become problematic over the longer term, this year the Bank of England – and thus the wider economy – has been more troubled by the rate of wage growth<\/a>, which contributes to stoking high inflation<\/a> levels. That has appeared to be dropping off recently, with employers cutting back on new hires due to other expenses including hiked National Insurance and minimum wage payments.<\/p>\n

Karl Matchett12 August 2025 08:49<\/p>\n

<\/a>FTSE 100 rises as jobs market weakens<\/p>\n

The FTSE 100 has risen this morning, up 0.3 per cent in early trading.<\/p>\n

Spirax Group is the biggest riser with a 16% surge after reporting this morning.<\/p>\n

Germany\u2019s DAX is almost flat but France\u2019s CAC 40 is up 0.5% so far, after rises in Asia overnight.<\/p>\n

The Nikkei 225 rose 2.15%, with smaller gains for the Hang Seng, Asia Dow and Australian ASX200.<\/p>\n

Karl Matchett12 August 2025 08:33<\/p>\n

<\/a>Retail growth is \u2018barely touches the sides\u2019 due to increased costs<\/p>\n

Growth in the retail sector is \u201cbarely touching the sides\u201d when it comes to costs, bosses have warned<\/p>\n

July retail sales were up 2.5 per cent on a year ago but they were not close to covering the the last budget\u2019s \u00a37 billion in new costs on the sector.<\/p>\n

The uptick in the UK<\/a>\u2019s total retail sales was against growth of 0.5 per cent last July and the 12-month average growth of 1.9 per cent, according to British Retail Consortium (BRC<\/a>)-KPMG data.<\/p>\n

Food sales increased by 3.9 per cent on last July due to warm weather and a packed sporting schedule, although rising food inflation<\/a> \u2013 now at 4 per cent, according to latest BRC figures \u2013 meant increased spending<\/a> was more a result of higher prices than improved demand.<\/p>\n

Karl Matchett12 August 2025 08:15<\/p>\n

<\/a>Jobs vacancies fall as unemployment sticks at 4.7% <\/p>\n

The Office for National Statistics (ONS) said the rate of UK unemployment struck 4.7% in the three months to June.<\/p>\n

It was the same as the previous three-month period, which had been highest level since June 2021.<\/p>\n

Meanwhile, average earnings growth, excluding bonuses, remained at 5% for the period to June.<\/p>\n

It came as UK job vacancies tumbled by 44,000 over the three months to July to 718,000 \u2013 the lowest number of job openings since April 2021.<\/p>\n

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