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Time of India
10-06-2025
- Business
- Time of India
Fewer jobs, higher hurdles: UK unemployment rise hits international students
The job market in the United Kingdom is showing clear signs of strain, and international students—once drawn to the country's promise of strong post-study prospects—are starting to feel the pressure. With unemployment rising to 4.6% between February and April 2025, the highest since the pandemic-era summer of 2021, the picture for graduates seeking jobs has grown significantly dimmer. Recent figures from the Office for National Statistics paint a sobering portrait: over 109,000 payroll positions vanished in May alone, the steepest drop in five years. Employers are growing cautious, shedding staff and halting recruitment as costs spiral. The number of job vacancies has now fallen for the 35th consecutive quarter, slipping by 63,000 to just 736,000 openings nationwide. For international students, who already navigate visa limits, sponsorship hurdles, and cultural adjustments, this downturn adds a new layer of complexity. Shrinking window of opportunity Each year, thousands of international students transition from study visas to the UK's Graduate Route, giving them up to two years to find work. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esta nueva alarma con cámara es casi regalada en Cordoba (ver precio) Verisure Undo But that window is closing faster in today's market. Fewer vacancies mean stiffer competition, and for many, the ultimate goal—a Skilled Worker visa—is becoming harder to reach. Companies are now more reluctant to take on new hires, especially those requiring visa sponsorship, amid growing financial pressures. The latest ONS data highlights a significant shift that came in April, when employer National Insurance contributions jumped to 15% on salaries over £5,000, up from the previous 13.8% above £9,100. At the same time, the government raised both the minimum wage and the national living wage, adding further strain to employers' bottom lines. As a result, even businesses with a history of hiring international graduates are now scaling back. When ambition meets economics For international students with high aspirations in finance, tech, or media, the labour market slump can feel like the rug being pulled out from under them. Even if jobs are available, slowing pay growth—down to 5.2% excluding bonuses (as shared by ONS), the weakest in seven months—means entry-level roles may no longer support rising rent and living expenses, especially in cities like London. Others face the risk of underemployment, taking roles far below their qualifications just to stay afloat. For those counting on UK experience to launch global careers, this could mean a detour—or even a dead end. Waiting for a turnaround As inflation levels edge down to 3.4% (ONS data, June 2025) , there is hope that the Bank of England may offer relief through future interest rate cuts. But with global trade policies shifting and domestic uncertainty lingering, confidence among UK employers remains shaky. In the meantime, international students are advised to diversify their job strategies—exploring sectors with higher hiring resilience, investing in upskilling, and engaging early with potential employers. Those still abroad and considering the UK for study might weigh their options more carefully in light of the current job market. The UK has long been seen as a launchpad for global careers. But for international students in 2025, the climb is getting steeper—and it may take more than a degree to reach the summit. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.
Yahoo
10-06-2025
- Business
- Yahoo
UK unemployment rises to highest level in nearly four years
Unemployment in the UK rose in April to the highest level in almost four years, official figures showed, as tax increases introduced by Rachel Reeves added to a broader slowdown in the jobs market. In a blow for the chancellor before Wednesday's spending review, the Office for National Statistics (ONS) said the jobless rate increased to 4.6% in the three months to the end of April, up from 4.5% on the previous three-month period, to hit the highest level since summer 2021. Annual growth in regular wages slowed to 5.2% from a revised 5.5%, below City economists' forecasts for a reading of 5.3%. Related: US-China trade talks to resume; UK jobs market 'weakening' as payrolls tumble – business live Liz McKeown, the ONS director of economic statistics, said: 'There continues to be weakening in the labour market, with the number of people on payroll falling notably. Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on. 'Earnings growth has slowed in both cash and real terms, though it remains strong by historic standards. Public sector pay is now growing at a higher rate than wages in the private sector.' Unemployment is measured using the ONS's widely criticised labour force survey, which has suffered from collapsing response rates. Experts have argued this leaves policymakers 'flying blind', with the prospect that decisions are being taken based on flawed data. However, separate figures showed the number of workers on UK company payrolls collapsed at the fastest rate since the height of the Covid pandemic, with a monthly drop of 109,000 in May. Vacancies also fell by 63,000 over the three months to the end of May. The latest snapshot gives the first indication of the impact of Reeves's £25bn rise in employer national insurance contributions (NICs) introduced from April, affecting almost 1m businesses, as well as a 6.7% rise in the national living wage. Highlighting the pressure on the chancellor before her highly anticipated spending review, the figures showed the number of employees on payroll has fallen by 276,000 since Reeves's October budget. Suren Thiru, the economics director at the Institute of Chartered Accountants in England and Wales, said: 'These figures suggest that the UK's jobs market took a damaging hit from 'Awful April', with the tough reality of sharply rising NICs and national living wage costs pushing more employers to cut staff. 'The UK's labour market is in a painful period with eye-wateringly high business costs likely to mean more job losses this year, particularly if the spending review increases the odds of more tax hikes in the autumn budget.' Businesses in typically lower-paying sectors, including hospitality, leisure and retail, had warned jobs could be hit. Andrew Griffith, the shadow business secretary, said the increase in unemployment was 'disappointing but no surprise'. It comes as the Bank of England monitors the jobs market for signs of weaker conditions as policymakers consider whether to cut interest rates further after four earlier reductions in borrowing costs to 4.25%. Threadneedle Street is widely expected to keep rates on hold next week amid heightened uncertainty over the impact of Donald Trump's increasingly erratic trade wars on the world economy. Economists said the sharper-than-expected slowdown in wage growth could encourage the Bank to cut borrowing costs by a further quarter of a percentage point at the following meeting in August. The pound fell by about 0.5% against the US dollar after the data. James Smith, a developed markets economist at ING, said: 'The UK jobs market might be turning a corner – and not in a good way. 'If nothing else, this should help cement another rate cut in August and further quarterly cuts in November and into 2026. We wouldn't totally rule out the Bank moving faster, particularly because we are more upbeat about the inflation outlook.' Despite the rise in unemployment, separate figures showed the rate of economic inactivity – when working-age adults are neither in a job or looking for one – fell by 0.2 percentage points to 21.3%. Alison McGovern, the employment minister, said the government was putting in place more help for jobseekers. 'Supporting more people into work and putting more money in the pockets of working people is at the heart of our plan for change,' she said.
Euronews
10-06-2025
- Business
- Euronews
UK unemployment rises to a four-year high as firms cut back on hires
The unemployment rate in the UK rose to 4.6% in the period from February to April 2025, the Office for National Statistics (ONS) said on Tuesday. That represents a 0.1 percentage point increase compared to the previous period, and it marks the highest rate seen since summer 2021. The number of staff on payroll, meanwhile, fell by 109,000 month-on-month in May, the largest drop seen since May 2020. Annual pay growth excluding bonuses eased to 5.2% in the period from February to April, the slowest pace seen in seven months. The number of available jobs fell by 63,000 to 736,000 between March and May, the 35th consecutive quarterly decline. The data suggests the UK's labour market is cooling as firms are hesitant to hire, a trend attributed to rising employer costs. In April of this year, businesses saw their payroll taxes (National Insurance) rise to 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100. The government also increased the minimum wage and the living wage, the latter received by workers over 21, in April. 'Indeed, with increased national insurance contributions on businesses now bedded in, the employment picture is deteriorating as companies look to scale back hiring, and in some cases cut their UK workforce significantly,' said Richard Carter, head of fixed interest research at Quilter Cheviot. "This is all underpinning what is a difficult task for the Bank of England,' he added. 'With wage growth slowing but inflation rising, it will not want to pull the trigger on rate cuts too soon and put extra sails into the inflation charge. This perhaps explains Andrew Bailey's recent tone that rate cuts will be slow and cautious, as despite what is an obviously slowing economy, many risks remain present in the world.' UK inflation for April was reported at 3.5%, although the ONS later pointed to a data error, noting that the figure should have been 3.4% The Bank of England will meet next week for their monetary policy meeting. 'There's no doubt that US trade policies have contributed to business uncertainty and there will be companies who have put off investment whilst they figure out exactly what new trade deals might mean for them,' added Danni Hewson, AJ Bell head of financial analysis. She added: 'Whilst the smart money is still on no cut at the Bank of England's meeting next week, the softening in the labour market and cooling wage increases have added to expectations that the MPC will deliver another cut later in the summer.' Asian shares were marginally higher on Tuesday as investors kept an eye on US-China trade talks that might help stave off a recession. Tokyo's Nikkei 225 gained 0.9% to 38,445.68, while the Kospi in South Korea jumped 0.3% to 2,865.12. Hong Kong's Hang Seng edged 0.3% higher, to 24,261.26 and the Shanghai Composite index was up 0.1% at 3,403.52. In Taiwan, the Taiex surged 2.1% to 22.253,46. Australia's S&P/ASX 200 advanced just less than 0.9% to 8.588,10. On Monday, the S&P 500 edged up just 0.1% and at 6,005.88 is within 2.3% of its record set in February. The Dow Jones Industrial Average slipped by 1 point, which is well below 0.1%, to 42,761.76. The Nasdaq composite added 0.3% to 19,591.24. A second day of talks between the US and China was planned after the two global powers met in London for negotiations. The hope is that they can eventually reach a deal to reduce painfully high tariffs against each other. Most of the tariff hikes imposed since US President Donald Trump escalated his trade war have been paused to allow trade in everything from tiny tech gadgets to enormous machinery. Hopes that President Donald Trump will lower his tariffs after reaching trade deals with countries around the world have helped the S&P 500 win back gains after it dropped roughly 20% from its record two months ago. The index is back above where it was when Trump shocked financial markets in April with his wide-ranging tariff announcement on so-called 'Liberation Day'. Some of the market's biggest moves came from the announcement of big buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy Alphawave Semi in a deal valued at $2.4bn (€2.1bn). IonQ, meanwhile, rose 2.7% after the quantum computing and networking company said it agreed to purchase Oxford Ionics for nearly $1.08bn (€947.1mn). On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3% after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products. Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk's relationship with Trump broke apart, and it rose 4.6% on Monday after flipping between gains and losses earlier in the day. The frayed relationship could end up damaging Musk's other companies that get contracts from the US government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceX's expense, rose 2.5%. In the bond market, the yield on the 10-year Treasury eased to 4.48% from 4.51% late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumers' expectations for coming inflation eased slightly in May. Economists expect a report due on Wednesday to show that inflation across the country accelerated last month to 2.5% from 2.3%. The Federal Reserve has been keeping its main interest rate steady as it waits to assess the inflationary effects of Trump's tariffs. A persistent increase in inflation expectations among US households could drive behaviour that creates a vicious cycle that only worsens inflation. In other dealings early on Tuesday, US benchmark crude oil picked up 31 cents to $65.45 per barrel. Brent crude, the international standard, also gained 31 cents, to $67.35. The dollar rose to 144.93 Japanese yen from 144.61 yen. The euro slipped to $1.1399 from $1.1421.
Yahoo
10-06-2025
- Business
- Yahoo
UK job market and wage growth cool, as unemployment rises to 4.6%
The UK labour market continued to cool in April, with the latest ONS figures showing unemployment at 4.6% and a 0.2% drop in payrolled employees — or 55,000 fewer jobs — from the previous month. It marks the first time the unemployment rate has crept above pre-pandemic levels. The number of payrolled employees fell by 115,000 (0.4%) between April 2024 and April 2025, the data showed. 'There continues to be weakening in the labour market, with the number of people on payroll falling notably," said ONS director of economic statistics Liz McKeown. "Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on." The data comes ahead of a key moment for the government: chancellor Rachel Reeves will present her spending review to parliament on Wednesday. On Monday, it was revealed the review is set to contain changes to winter fuel allowance thresholds for pensioners. There has been some speculation it will also look to alter National Insurance thresholds, which were increased to help plug holes in the fiscal deficit. 'If there's any upside, it may be in the battle to control inflation," said Paige Tao, an economist at PwC UK. Annual wage growth excluding bonuses eased to 5.2% in the latest figures, marking the second consecutive monthly decline. "This gradual cooling in pay growth may offer some reassurance to the Bank of England, following last month's inflation reading unexpectedly jumping to its highest level in over a year," added Tao. "However, with wage growth remaining high in absolute terms, the Bank may want to see this trend continue before proceeding with further rate cuts." Read more: What the winter fuel allowance U-turn means for your finances In May's meeting, the Bank of England cut interest rates to 4.25% amid a global trade war and a weak domestic economy. This was its fourth reduction since rates peaked at 5.25% last year. At the time, BoE governor Andrew Bailey said policymakers needed to stick to a 'gradual and careful' approach to cutting interest rates. Bailey said: 'Inflationary pressures have continued to ease so we've been able to cut rates again today. The past few weeks have shown how unpredictable the global economy can be. 'That's why we need to stick to a gradual and careful approach to further rate cuts. Ensuring low and stable inflation is our top priority.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scoop
09-06-2025
- Business
- Scoop
Business Financial Data: March 2025 Quarter
Press Release – Stats NZ The business financial data release covers most market industries in the New Zealand economy, using survey and tax data. For all business financial data (BFD) industries, in the March 2025 quarter compared with the March 2024 quarter: sales were $190 billion, up $6.1 billion (3.3 percent) purchases were $133 billion, up $4.6 billion (3.6 percent) Salaries and wages were $31 billion, down $363 million (1.2 percent) operating profit was $26 billion, up $1.9 billion (8.0 percent). When adjusting for seasonal effects, in the March 2025 quarter compared with the December 2024 quarter: sales increased in 13 of the 14 New Zealand Standard Industrial Output Classification (NZSIOC) level 1 industries manufacturing (up $1.7 billion); electricity, gas, water, and waste services (up $1.3 billion); and wholesale trade (up $1.2 billion) industries had the largest movements in sales. The business financial data release covers most market industries in the New Zealand economy, using survey and tax data. Visit the link to read this information release and to download CSV files:
