The UK’s unemployment rate is projected to reach 5% by August, according to the Resolution Foundation. The Office for National Statistics (ONS) reported a current rate of 4.7%, matching the previous quarter’s high. Job vacancies have also declined, with 718,000 openings recorded, the lowest since April 2021. Gregory Thwaites, research director at the Resolution Foundation, stated: “Our alternative unemployment rate indicates that unemployment has not yet peaked.”

The Trades Union Congress (TUC) reports that over half of UK adults fear artificial intelligence (AI) may threaten their jobs. A recent survey revealed that 51% of working adults are anxious about AI’s impact, with concerns peaking among younger workers aged 25 to 34, where 62% expressed worry. TUC assistant general secretary Kate Bell commented: “AI could have transformative potential… Left unmanaged… the AI revolution could entrench rampant inequality.” The TUC urges companies to invest in workforce skills to prevent job displacement as AI technology evolves.

Steve Rigby, co-CEO of Rigby Group and chair of Family Business UK, warns that rising minimum wages are undermining graduate salaries and ambition in the UK. The Low Pay Commission’s (LPC) recent decision to increase the minimum wage by 6.8% has created a scenario where non-skilled jobs may soon pay as much as graduate roles. Rigby argues that this trend could lead to a brain drain, as talented individuals opt for immediate employment over further education. He points to the need for the LPC to consider broader economic factors in wage policy to avoid jeopardising the UK’s competitive edge and social mobility.

The Scottish government has successfully trialled a four-day week at two public bodies, South of Scotland Enterprise (SOSE) and Accountant in Bankruptcy (AiB). The 32-hour workweek, implemented without pay cuts, led to reduced work-related stress and increased job satisfaction. Notably, 98% of SOSE employees felt more motivated. Sick days dropped by 25%, particularly for psychological reasons. Joe Ryle, campaign director of the 4 Day Week Foundation, called the results “extremely encouraging” and advocated for broader adoption in the public sector.

Business confidence in the UK’s services sector has significantly declined, according to the latest CBI survey. Companies are facing profit squeezes due to rising costs and falling sales, leading to reduced hiring and investment. Alpesh Paleja, deputy chief economist at the CBI, said the survey “painted a grim picture of the services sector.” The negative outlook has persisted for eight months among consumer services firms, while those serving other businesses reported declining activity for four months.

The UK financial sector is experiencing a significant rise in merger and acquisition (M&A) activity, driven by improved economic stability. In Q1 2025, the value of M&As involving UK companies reached its highest level since late 2022, with 395 deals recorded. Sam Newhouse, global vice chair at Latham & Watkins, noted a surge in high-value deals, particularly in financial services. Despite domestic investor pessimism, foreign investors are capitalising on attractive valuations. Ed Barnett, managing partner at Latham & Watkins, stated: “The financial services sector is undergoing a period of significant change.”

Assetz Capital has announced a repricing of its refurbishment, regeneration, and development exit loans, with rates starting at 9%. Development exit loans begin at 9.25%, allowing developers to refinance and release capital. Residential refurbishment loans start at 9.5%, supporting various building projects. Andrew Fraser, chief commercial officer, stated: “Refurbishment and regeneration present a vital route to keep housing supply moving.” The UK faces record-low planning approvals, making these options increasingly attractive for developers. Assetz Capital aims to provide speed and certainty in funding during these challenging times.

Many of Britain’s largest companies struggle to accurately report their emissions data, leading to significant adjustments in their climate metrics. According to Deloitte, 46 FTSE 100 firms made “material prior-year adjustments” this year. Notable companies like HSBC and Unilever have corrected errors in their reports. Steve Farrell, head of sustainability assurance at Deloitte UK, said these restatements are likely to persist. He noted that over 75% of adjustments were related to greenhouse gas emissions, particularly challenging to measure due to reliance on supply chain data.

Apple has expressed concerns over proposed UK competition regulations, stating they could harm users and developers. The company argues that similar EU laws have delayed features for European users. Apple claims the Competition and Markets Authority (CMA) risks repeating these mistakes, which could undermine privacy and security. The CMA, however, insists its rules differ from the EU’s and aim to foster innovation. It has found that Apple and Google dominate the UK mobile market, leading to proposed changes that would allow app developers more freedom to make products interoperable with Apple technology.

Royal Mail is rolling out 3,500 solar-powered postboxes across the UK after trials in Hertfordshire and Cambridgeshire, marking what it calls the biggest redesign in its 175-year history. The new pillar boxes feature solar panels that power a digital drawer for depositing small parcels up to shoebox size. The rollout will begin in Edinburgh, Nottingham, Sheffield and Manchester, altering the look of the iconic red boxes that have dotted Britain’s streets for nearly two centuries.