Business News Round Up (18/07/2025)
Jobs market weakens and pay growth slows
Job vacancies continue to fall and wage growth is slowing, according to official statistics that will raise concerns in Downing Street. The annual rate of pay growth in the three months between March and May was 5%, the latest figures from the Office for National Statistics (ONS) show, down from the previous figure of 5.2%. Meanwhile, the number of vacancies has fallen 56,000 to 727,000 and the unemployment rate rose to 4.7%, up 0.1% from April and its highest rate for four years. In Scotland, the unemployment rate estimate was better than the UK average at 3.7%. There are now 2.3 people across the UK seeking work per vacancy available in the most challenging labour market in recent years. The number of payrolled employees has fallen by 178,000 since Labour came to office last July.
Analysis of Greater Manchester’s major investment projects provides key insights into local skills gap
Greater Manchester Chamber of Commerce has released a series of 10 reports analysing the economic and labour market landscape of each borough in the region. The reports have been produced as part of the research for the GM Local Skills Improvement Plan, which is a Department for Education initiative that aims to align training with employers’ skills needs. Analysis of some of the region’s major investment projects, such as the Manchester Town Hall Refurbishment, Stockport Exchange, Bury Market and Flexi-Hall and the Atom Valley Mayoral Development Zone, has identified the priority roles for each sector and how these projects will translate into future job creation. Nearly 50 occupations have been classified as ‘in high demand’ across the construction, education, financial and professional services, hospitality, manufacturing and health and social care sectors.
Scottish retail sales ‘fizzled out’ in June, analysts find
Three months of expansion in the Scottish retail sector “fizzled out” in June, industry experts say. Overall sales in Scotland dropped by 0.4% compared to June 2024, when they had also fallen by 3.4%, the Scottish Retail Sales Monitor revealed. The Scottish Retail Consortium-KPMG study showed this figure was significantly beneath the three-month average growth of 1.2%, and under the 12-month average climb of 0.1%. When adjusted for inflation, there was a year-on-year decline of 0.8%. Food sales plummeted by 2.3% last month versus the same period last year, when they had also dropped by 1.7%. Overall, non-food sales climbed by 1.1% compared to June last year, when they fell 4.8%. When adjusted for online sales impact, non-food sales increased by 2.1% in June.
https://www.insider.co.uk/news/scottish-retail-sales-fizzled-out-35571832
British Business Bank commits £15m to SME support
The British Business Bank has announced a new commitment of £15 million to a new separately managed account (SMA) managed by Prefequity LLP. Investing alongside Prefequity Credit Opportunities II LP, to which the British Business Bank has already committed £30m, this new co-investment vehicle will enable Prefequity to make larger investments into well-established, profitable businesses meeting its investment criteria. Prefequity is starting a £150m final close. The UK-based private credit firm will target non-sponsored companies – those without backing from a private equity firm – that are seeking capital for growth initiatives such as acquisitions, management buyouts, and capital investment programmes. Their investment strategy is particularly suited to owner-managers seeking an alternative to private equity investment to support their strategic growth and development plans. Prefequity is an established private credit manager, focusing on businesses with strong historic performance and BITDA of £2-10m.
https://www.digit.fyi/british-business-bank-commits-15m-to-sme-support