Business News Round Up (11/06/2024)
Unemployment rate highest for more than two years
The unemployment rate has unexpectedly risen to its highest level for two and a half years, official figures show. It climbed to 4.4% in February to April, up from the previous figure of 4.3% and the highest since September 2021. The Office for National Statistics (ONS) also said there was another increase in the inactivity rate, with 22.3% of working age people deemed not to be actively looking for work. Wage growth remained strong, with regular pay rising at an annual pace of 6%. Earnings are continuing to increase faster than inflation, the rate at which prices rise. “This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong,” the ONS said. Economists were expecting an uptick in pay because of an increase in the National Living Wage in April.
https://www.bbc.co.uk/news/articles/c2881jmwjlmo
Over half of UK businesses rejecting potential customers due to lack of risk visibility
Over half (53%) of UK businesses have been forced to reject potential customers due to a lack of risk visibility. 61% state that excessive workload forces them into reactive firefighting instead of proactive risk management. Dun & Bradstreet’s study of compliance decision makers reveals increased pressure on compliance teams. It notes a 28% increase in demand on their time over the past year. Despite this, 55% of businesses had no additional budget to dedicate towards compliance activities. This highlights the discrepancy between complying with an evolving regulatory landscape, budget constraints and the need to invest in technology to enable companies to meet increasing demands. The survey examines the compliance industry’s most significant future-facing challenges. It also sets out potential solutions that can help alleviate some of the increased pressure on compliance teams. It reveals 48% of UK businesses do not have appropriate Perpetual KYC or Always-On Compliance solutions in place.
Size matters when it comes to business confidence
A survey has shown that the larger a company is the more optimistic it is about its prospects. Medium-sized businesses are more optimistic than smaller firms, while large companies are the most optimistic, according to the latest Azets Barometer Survey. The research of UK businesses during April, found that businesses leaders across the board rated their economic prospects at 5.5 out of 10. This made them among the least optimistic of the six Northern European countries, with Denmark (6.8) and Ireland (6.1) most optimistic. The Barometer highlights a clear correlation between business size and financial confidence, with smaller firms employing 10-45 staff scoring 6.1 out of 10, while medium-sized businesses employing 50-249 staff scored 6.8. Large companies are the most financially optimistic, scoring 7.3 out of 10. Economic and geopolitical uncertainty are the principal concerns at 5.8 and 5.4, followed by talent recruitment, retention, and regulatory compliance at 4.9.
https://dailybusinessgroup.co.uk/2024/06/size-matters-when-it-comes-to-business-confidence/
Half of UK businesses claim to be piloting Generative AI use cases
Business leaders are becoming increasingly optimistic about use of Generative AI. Over half are introducing it to their firms to some extent, according to research from Eden McCallum among 200 business leaders. Corporate leaders in the UK remain wary of the country’s future, with a recent poll suggesting that 58% of businesses are to some degree pessimistic about the domestic economic outlook. However, in line with previous polls, bosses were much more bullish when it came to the prospects of their individual firm – with 72% saying they were optimistic on the outlook for the coming year. In spite of the uncertainty, the respondents said that a host of new opportunities meant they still had high hopes looking ahead. Most prevalent was an optimism that artificial intelligence – and particularly Generative AI – would buoy productivity and help find efficiency savings even amid tough times on a national or international level.