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UK Edition
24th August 2026
 
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THE HOT STORY

Unions question zero-hours contracts plan

Trade unions warn that proposed rules implementing Labour’s ban on exploitative zero-hours contracts risk falling short of the party’s manifesto commitment. Usdaw, GMB and Unite are concerned that an upper hours threshold and a proposed "regularity requirement" could exclude significant numbers of workers from the right to guaranteed-hours contracts, creating loopholes that would weaken the reforms. The TUC has also rejected business claims that the measures could cost employers up to £2.9bn a year as "scaremongering," arguing that much of the estimated cost assumes no changes in employers’ scheduling practices. A government spokesperson said ministers are "absolutely committed to ending exploitative zero-hours contracts," adding that the planned reforms will give workers "greater income security and predictability of hours." They added that while no final decisions have been made, ministers are consulting with business and trade unions "to get the detail right and ensure this works in the real world."
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WORKFORCE

Shift change ban could backfire, FSB warns

A proposed ban on last-minute shift changes could harm the economy, according to the Federation of Small Businesses (FSB). The FSB, which represents 5.5m firms, argues that requiring at least seven days' notice for rota changes will lead to staff shortages. It warns that this could disproportionately affect those with caring responsibilities and health issues. The FSB said: "Ending on-the-day offers of work is tantamount to excluding many people in this position from the labour market."

Civil servants to support England’s mayoral authorities

High-performing civil servants will be temporarily assigned to England’s 18 mayoral authorities under a pilot scheme supporting Prime Minister Andy Burnham’s devolution agenda. Each authority will receive between five and 10 officials with requested specialist skills for six to nine months. The government will also pilot civil service fast-stream placements in Yorkshire and Humber, expand leadership training to local-government employees, and develop improved data sharing between national and mayoral authorities. Liberal Democrat MP Zöe Franklin welcomed the additional staffing but argued that councils outside metro-mayoral regions should receive equivalent funding and opportunities.

Why more young workers are leaving the UK behind

A growing number of young, skilled Britons are leaving for better pay, opportunities and lifestyles abroad, with 246,000 British nationals emigrating last year, more than twice the number returning.
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LEGAL

Queue to file an employment claim is now 64,000 people long

Writing for the Sunday Times, Harry Wallop says employment tribunals are being hindered by a combination of judge shortages, increasingly complex discrimination claims and lengthy proceedings. Outstanding cases have doubled from 32,000 in 2020 to 64,000, with some hearings now listed years ahead. Tribunal running costs have risen from £40m in 2018 to £81m, while cases are taking longer and increasingly combine unfair dismissal with discrimination allegations, which can substantially increase compensation. A major constraint is recruitment and retention of employment judges, particularly in London, where the £146,000 salary compares poorly with private-sector legal earnings.
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ECONOMY

Economy expands but employment falls

Data tracked by S&P Global shows that the economy picked up in August, with private-sector growth reaching a four-month high as stronger services activity offset weaker manufacturing. The overall PMI rose to 52.5 from 52.2 in July. However, private-sector employment has fallen for a record 23 consecutive months, while unemployment has risen from 4.4% to 4.9% since mid-2024. High staffing and energy costs, alongside higher employer National Insurance and the minimum wage, are weighing on hiring. Business sentiment has improved, but concerns over government policy, the Middle East conflict and persistent cost pressures remain. Jake Finney, a senior economist at PwC, said the output figures point to a rebound in the economy and could contribute to annual growth rate of just above 1% for 2026.
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TRAINING & DEVELOPMENT

PM urged to tackle skills shortages

Andy Burnham has been urged to focus on skill shortage areas in his technical education initiative to address the housing crisis. Experts warn that up to 755,000 additional construction workers will be needed by 2030 to meet housing targets. Steve Mulholland, CEO of the Construction Plant-hire Association, said skill shortages are a "major concern" for construction firms. The Prime Minister recently announced plans to allow Year 10 pupils to combine core subjects with technical education relevant to local job markets. 
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STRATEGY

HSBC clears out senior bankers

HSBC last year cut 134 senior bankers - around 10% of such employees - as part of a restructuring of its investment banking operations. This cost the bank around $67.5m in severance payments.  The layoffs mark the largest cull of HSBC’s senior ranks since records began in 2010.
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INTERNATIONAL

Hyundai South Korean union stages first full strike in a decade

Hyundai Motor's South Korean union has staged its first full strike in a decade after the collapse of wage negotiations. The Korean Metal Workers' Union wants a higher retirement age and job protections against artificial intelligence and automation. Striking workers from Hyundai Motor, affiliate Kia and suppliers rallied outside the automaker's headquarters in Seoul to call for an increase in the retirement age from the current 60. "The key figures who made Hyundai and Kia the world's strongest company for 35 or 40 years are now being pushed into contract positions," Hyundai union leader Lee Jong Cheol said to his members. "Strike action can impact our customers, partners and operations. We are at a critical time when both sides must work together to successfully ‌navigate the global transition to future mobility," Hyundai Motor said in a statement.

Starbucks cuts more than 200 corporate jobs as turnaround drive continues

Starbucks is laying off more than 200 corporate employees as chief executive Brian Niccol continues to streamline the business and target $2bn in cost savings by the end of fiscal 2028. The cuts include about 120 technology employees who declined to relocate to the company’s new Nashville office, as well as 104 roles in coffeehouse design and development, and do not involve additional cafe closures. The reductions follow 300 US corporate layoffs earlier this year and around 2,000 corporate job cuts in 2025, alongside the closure of hundreds of US stores. Starbucks is simultaneously investing in cafe operations and a new $100m Nashville office for 2,000 employees, while its turnaround has shown signs of progress, with recent quarterly sales and earnings beating expectations and the company raising its full-year same-store sales and earnings forecasts.

Farmers in Japan adapt to deadly heatwaves

As heatwaves intensify, Japanese farmers are shifting their work hours to the night to protect their crops, their livestock - and themselves. Motoaki Iijima, a flower farmer, now harvests gerberas after dark to avoid extreme daytime temperatures that can exceed 40°C. He said: "The hours around dusk are really precious. That's when we can be outside . . . We've gradually become nocturnal. It's about protecting our bodies, and ultimately, our lives." The trend is not unique to Japan; farmers globally are adapting to similar conditions. In 2024, Japan recorded 59 agricultural worker deaths due to heat.
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OTHER

Britons are spending more in bricks-and-mortar shops

Britons are spending more in physical shops, challenging expectations that the pandemic would permanently accelerate the shift to online shopping. Retail sales per occupied square foot reached a record £61.92m in the second quarter of 2026, 23% above late 2019 levels. Sales excluding fuel and online spending rose 9% to £105.3bn, while occupied retail space remained unchanged at 1.7bn square feet. Retail sales volumes also increased 1.1% in the three months to July, helped by warmer weather, sporting events and promotions.
 
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