Wage growth slows as the jobs market “cools” and the impact of day one unfair dismissal rights
Plus, why AI-labelled products can scare away customers, the Yorkshire tech revolution and an advertising ban business leaders need to take note of
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Business Agenda
A summary of the most important business news
1. UK wage growth slowed to 5.4 per cent in the three months to June, marking the lowest rate since July 2022. The Office for National Statistics (ONS) figures also show that the rate of unemployment unexpectedly fell to 4.2 per cent. The ONS says there are signs the jobs market is “cooling”, with job vacancies up and redundancies rising. You can read more here.
2. Grocery price inflation in Great Britain rose to 1.8 per cent in the four weeks to August 4, according to the retail analysts Kantar, the first increase since March 2022. It also revealed that football fans spent £10m on beer on the day of the Euro 2024 football final, the biggest figure on a Sunday in more than three years. You can read more here.
3. Bharti Global, the international investment arm of Bharti Enterprises, has agreed a deal that will make it the largest shareholder in BT. Led by company chairman, Sunil Bharti Mittal, it has agreed to buy Altice UK’s shares in the FTSE 100 company. Mittal says BT has a “much brighter future ahead and it needs to be following its strategy, if I may say, even more boldly”. You can read more here.
4. UK office properties are selling at an average of 18 per cent below their asking price, the steepest discount since the 2008 financial crisis, according to data property analytics group CoStar. The market downturn is driven by rising interest rates, declining property valuations and ongoing uncertainty over the future of office space in a post-pandemic world. While demand for top-tier, modern offices remains strong, older “secondary” buildings are struggling to attract buyers, leading some landlords to sell at significant losses. You can read more here.
5. The Advertising Standards Authority (ASA) has issued a warning to businesses over the disclosure of commercial relationships in advertising. The regulator banned Zoe and Huel ads featuring Steven Bartlett for not disclosing their commercial relationship with the celebrity entrepreneur. Zoe says it believes “the average consumer would understand there was a commercial relationship between the brand and the individual and did not need to know the exact nature of that relationship”. However, the ASA says his position as a backer of Zoe is “material to consumers’ understanding of the ad and relevant in making an informed decision”. You can read more from The Times here.
Business Question
When did the London Underground open?
A. 1863
B. 1899
C. 1904
D. 1912
The answer can be found at the bottom of the page.
Business Thinker
Deep dives on business and leadership
🤔 The impact of day one unfair dismissal rights
The UK government is preparing to introduce day one unfair dismissal rights, a significant change that would shift the balance of power between employers and employees, potentially impacting recruitment practices. While some leaders view the reform as “unworkable”, others express concern about its impact on medium-sized businesses, particularly regarding probation periods and employment tribunals. The government plans to consult with businesses to ensure these changes improve employment practices without causing unintended negative consequences.
🙅 AI-labelled products can scare away customers, study finds
Despite the growing use of AI in consumer products, a significant number of consumers remain wary of AI, leading to reduced purchase intentions for items labelled as “AI-powered”. A study highlights that consumers show less interest in AI-branded products due to concerns over privacy, identity threats and distrust in the technology. To overcome this challenge, brands need to clearly communicate the benefits of AI in their products and improve transparency around data security.
Robert Higginson, co-founder of Par Equity, spoke to The Times about the need for long-term investment in Yorkshire’s tech sector, drawing parallels to the successful development of Scotland’s ecosystem over the past 16 years. He highlighted the region’s potential, particularly in healthtech, and the importance of building strong, local relationships rather than adopting a “tourist venture capitalist” approach.
Business Quote
Inspiration from leaders
“I have not failed. I’ve just found 10,000 ways that won’t work.”
– Thomas A. Edison
Business Leader
The best of our content
Female business leaders and the confidence conundrum
Women in business face a confidence paradox: they’re seen as either lacking it or overdoing it, never matching the typical leader’s image. This double standard, highlighted by a Harvard Business Review analysis, unfairly penalises women, making leadership journeys tougher. Despite identical achievements, male counterparts are often rated more competent, showcasing deep-seated biases.
Redefining confidence to include collaboration and empathy, implementing inclusive selection processes, and diversifying networking opportunities are key steps business leaders can take to bridge this gap.
Our expert Zara Nanu says that embracing these changes is not just fair but strategically vital for leveraging a diverse workforce’s full potential.
You can read the article here.
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And finally…
I’m not sure about anyone else, but I found myself missing sitting down and watching Olympic action last night. We all became instant experts in sports we never watch outside of a four-year cycle – the good times.
X is packed with “best of the Olympics” threads but one of my favourites is this one with iconic images from the 2024 iteration. On to LA 2028…
The answer to today’s Business Question is A. 1863.
