Britain’s labour market showed signs of weakness ahead of April’s employer tax hike, with job cuts and falling vacancies. Despite this, strong wage growth challenges the Bank of England’s decision-making, as it weighs inflation risks and economic slowdown amid global trade uncertainty.
Britain’s labour market showed signs of weakening ahead of the tax hike on employers set for April, with job cuts and a fall in vacancies reported. According to data from the Office for National Statistics, vacancies fell below pre-COVID levels for the first time in almost four years. In March, the number of employees dropped by 78,000, marking the biggest decline since early 2020.
Despite the job losses, wage growth remained robust, with average weekly earnings rising by 5.9% in the three months to February, a slight increase from the previous month. This strong pay growth presents a challenge for the Bank of England, which must decide whether to continue cutting interest rates in response to weakening economic conditions.
In addition to domestic pressures, the impact of U.S. trade tariffs on global growth and the UK's exports is adding uncertainty. As finance minister Rachel Reeves’ social security contribution hikes come into effect, it is expected to slow wage growth, which could further dampen hiring. Meanwhile, the UK’s minimum wage rise may also influence employer decisions on staffing levels. The Bank of England faces a tough balancing act as it navigates inflation and economic slowdown risks.
UK Foreign Secretary David Lammy will meet with Ukraine’s foreign minister and representatives from 17 other EU countries in Lviv on Friday to confirm support for establishing an International Tribunal for war crimes and aggression.
Britain and Switzerland have signed an agreement to explore the creation of a direct rail connection between London and Switzerland, aiming to expand cross-border train travel beyond existing routes to Paris, Brussels, and Amsterdam.
Britain has imposed fresh sanctions on Russia, including asset freezes targeting directors of the oil trading firm Coral Energy Group, now known as 2Rivers Group.
President Donald Trump and U.K. Prime Minister Keir Starmer have reached a trade agreement that lowers U.S. tariffs on British autos, steel, and aluminum, while maintaining a 10% baseline tariff on other goods and boosting American exports of beef and ethanol.
President Trump and UK Prime Minister Keir Starmer unveiled a limited trade deal Thursday that keeps 10% tariffs on British exports but lowers U.S. duties on UK cars and cuts average UK tariffs on U.S. goods to 1.8%, calling it a “historic” step forward.
Iran has agreed to hold a fourth round of indirect nuclear talks with the United States on Sunday in Oman.
Ukraine's security service says it has detained two alleged Hungarian spies accused of gathering military intelligence in the Zakarpattia region, near the shared border.
Ukrainian President Volodymyr Zelenskyy announced that leaders of the "coalition of the willing" will meet in Kyiv on Saturday, as Europe weighs its long-term security role in Ukraine's future.
Ukraine has imposed sanctions on one Chinese firm and three Iranian companies, as outlined in a presidential decree issued Friday.
Swiss President Karin Keller-Sutter said Switzerland and the U.S. have agreed to accelarate trade talks.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
Discover every major VE Day 80 event in Britain, 5‑8 May 2025—from London’s parade and fly‑past to street parties, concerts and museum exhibitions.
Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
Cardinals from 70 nations have gathered in Vatican City to begin the historic conclave to elect the next pope, following the death of Pope Francis 17 days ago. This conclave is the most geographically diverse in Church history, showcasing Francis’ legacy of inclusivity.
Iran has agreed to hold a fourth round of indirect nuclear talks with the United States on Sunday in Oman.
Ukraine's security service says it has detained two alleged Hungarian spies accused of gathering military intelligence in the Zakarpattia region, near the shared border.
Ukrainian President Volodymyr Zelenskyy announced that leaders of the "coalition of the willing" will meet in Kyiv on Saturday, as Europe weighs its long-term security role in Ukraine's future.
Ukraine has imposed sanctions on one Chinese firm and three Iranian companies, as outlined in a presidential decree issued Friday.
Swiss President Karin Keller-Sutter said Switzerland and the U.S. have agreed to accelarate trade talks.
Iran has agreed to hold a fourth round of indirect nuclear talks with the United States on Sunday in Oman.
Ukraine's security service says it has detained two alleged Hungarian spies accused of gathering military intelligence in the Zakarpattia region, near the shared border.
Ukrainian President Volodymyr Zelenskyy announced that leaders of the "coalition of the willing" will meet in Kyiv on Saturday, as Europe weighs its long-term security role in Ukraine's future.
Ukraine has imposed sanctions on one Chinese firm and three Iranian companies, as outlined in a presidential decree issued Friday.
Swiss President Karin Keller-Sutter said Switzerland and the U.S. have agreed to accelarate trade talks.
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