SYDNEY — Throwing financial caution to the wind has delivered a life-changing $1 million windfall for a New South Wales university student who became the first Division 1 winner in Australia’s newest lottery, FutureBall. The data science student in his 20s purchased a $12.35 ticket on a whim and matched all numbers including the special FutureBall in last Friday’s draw, securing the full guaranteed prize without sharing it with any other player.

The win, confirmed Monday by The Lottery Office, marks a historic moment for the game just four weeks after its April 2026 launch. FutureBall promises odds more than twice as favorable as traditional Australian lotteries for its fixed $1 million top prize, with no risk of splitting the jackpot due to its unique format that prevents duplicate number combinations.

When lottery officials contacted the young man to break the news, his stunned reaction captured the disbelief many winners experience. “Oh my god, really?! Oh my goodness! Am I the only one to win that prize?” he asked, according to a recording shared by the operator. The student, who has asked to remain anonymous, quickly shifted from shock to gratitude as the reality sank in.

A Game-Changing Moment for Family Security

In a brief interview arranged through The Lottery Office, the winner described the prize as removing a heavy weight from his shoulders. “When I think about my future now, I feel grateful and relieved. It was a life-changing moment,” he said. “Something I have always hoped for is to give my family a more secure and comfortable life. This makes that feel possible in a way it didn’t before.”

The student emphasized relief from financial stress and new opportunities for his loved ones. “This win will give my family and me much more peace of mind,” he added. After addressing immediate family needs and continuing his education without burden, he plans to focus on careful long-term financial planning.

For celebration, the young millionaire kept plans refreshingly simple and grounded. “Maybe buy some clothes and shoes. I’m excited to go shopping tomorrow,” he said, revealing a modest outlook despite the sudden fortune. No lavish cars or exotic vacations were mentioned — just practical steps toward stability.

How FutureBall Works and Its Appeal

FutureBall, operated by The Lottery Office, launched as Australia’s “most winnable” million-dollar lottery. Unlike games with rolling jackpots that can balloon but often get divided among multiple winners, FutureBall guarantees one sole Division 1 winner every draw. Entries close at 7:30 p.m. AEST with draws at 8:30 p.m., offering games starting from as little as 95 cents.

The format ensures no two tickets share identical combinations, eliminating prize sharing. Odds of winning the top prize stand at approximately 1 in 4,034,712 — significantly better than many established national lotteries. The game has quickly gained traction as a fresh alternative for players seeking realistic chances at substantial, undivided winnings.

Chief Executive Jaclyn Wood highlighted the innovation: “FutureBall was created to rethink the traditional lottery experience and give Australians better first division odds at a genuinely life-changing prize.” The student’s win in only the sixth draw validates the model early in its rollout.

Broader Context of Australian Lotteries

Lottery wins have long captured the public imagination in Australia, where games like Powerball and Oz Lotto regularly produce multimillion-dollar jackpots. Yet stories of young winners using prizes for education, family support and prudent planning often resonate most deeply amid cost-of-living pressures and housing affordability challenges.

This victory arrives as many young Australians face student debt, rental stress and delayed milestones like home ownership. A $1 million windfall, while not enough for outright retirement, can provide a powerful head start — paying off loans, helping family, or investing in property and education.

Financial experts advise new winners to pause major decisions. Recommendations typically include consulting licensed advisors, setting aside tax obligations (lottery winnings are generally tax-free in Australia but investment income is not), and establishing a structured plan to preserve wealth. The student’s focus on family security and future planning aligns with common prudent strategies.

Reactions and Social Media Buzz

News of the win spread rapidly across Australian media and social platforms, with many celebrating the relatable story of a hardworking student catching a break. Comments highlighted the appeal of FutureBall’s structure and wished the winner well in managing sudden wealth responsibly. Some players reported rushing to buy tickets for upcoming draws, inspired by the quick first jackpot.

The Lottery Office noted strong early engagement with the new game, positioning it as a modern evolution in Australia’s lottery landscape — the first major new draw-based offering in over a decade.

Lessons from an Impulse Play

The winner’s decision to buy a ticket on impulse underscores a common theme in lottery success stories: sometimes the biggest rewards come from small, spontaneous acts. Yet officials consistently remind players to gamble responsibly, treating lotteries as entertainment rather than financial strategy.

For this young data science student, the win represents validation of calculated risk — both in his academic field and in that $12.35 purchase. As he embarks on shopping for new clothes and mapping out a brighter future, his story offers hope that life-changing opportunities can still arise in unexpected ways.

The full $1 million will be transferred directly to the winner, who has time to claim and plan. In the meantime, his tale serves as a timely reminder of FutureBall’s promise: one ticket, one winner, one million dollars — no sharing required. As more draws continue, eyes will remain on whether lightning can strike twice for another deserving Australian.

For now, one data science student from New South Wales stands as proof that throwing a little caution to the wind can sometimes rewrite an entire future.

Running a breakthrough e-commerce business today actually requires a lot more than listing products online. Customers expect fast-loading pages, intuitive navigation, seamless test checks, and visually appealing product displays. Magento 2 is one of the most powerful eCommerce systems because it offers flexibility, scalability, and advanced customization options for businesses of all sizes, but maximizing Magento’s full potential requires a lot of expertise in business improvement and timely expansion decisions.

Here, Amasty gained a reputation as one of the most trusted names within the Magento ecosystem. With years of experience developing Magento responses, Amasty helps online stores optimize functionality, improve customer experience, and increase conversions through revolutionary extensibility and in-depth technical information.

From increasing checkout options to increasing product visibility with progressive ads and promotional materials, Magento merchants rely on the best extensions to survive aggressively within the fast-evolving eCommerce market.

Why Magento 2 Continues to Lead eCommerce Development

Magento 2 has been widely credited for enterprise-level flexibility and customization. Unlike many simplified eCommerce systems, Magento lets organizations create unique personalized purchase surveys that can scale with growth.

Some of the significant benefits of Magento 2 are:

• Flexible structure
• Advanced Inventory Management
• Strong Search Engine Marketing Skills
• Help in more stores
• Comprehensive 0.33-Birthday-Celebration Integrations
• Powerful customization options

However, the default Magento configuration may not consistently provide all the functionality that leading eCommerce companies want. To survive in the face of opposition, merchants often spruce up their stores with custom improvements and unique details.

Professional Magento builders understand how to boost performance while maintaining balance, protection, and scalability. This is why companies often work with experienced Magento companies like Amasty, which has gained recognition for providing a reliable, ultra-holistic performance Magento response.

The Importance of Optimizing the Checkout Experience

One of the most important stages of the consumer journey is the checkout process. Minor usability problems can also result in carts being abandoned and mis-selling. Studies consistently show that complex or slow checkout systems significantly reduce conversion rates.

So Magento prioritizes empowering merchants:

• Box Speed
• User Comfort
• Payment Flexibility
• Mobile Responsiveness
• Valid Form
• Discount Error

A well-designed Magento 2 checkout plugin can also admirably embellish the buying experience by simplifying the checkout cart and reducing buyer friction.

Modern checkout customization makes easy and intuitive holiday enhancement a feature that encourages customers to complete their purchase quickly and successfully.

Features of an Effective Magento 2 Checkout Plugin

Top-level box extensions are typically as follows:

Single-phase box

Reducing the absolute range of checkout pages allows customers to complete transactions faster and reduces frustration.

Mobile-Friendly Design

As the mobile business evolves globally, responsive checkout options are critical to maximizing conversions.

Faster loading speed

Check out how the overall performance directly impacts user satisfaction. Optimized plugins reduce latency and improve processing performance.

Simplified Form

Smart self-fill systems and streamlined insert areas help customers complete their purchases extra easily.

Excellent payment integration

Customers expect more than a payment technique and a secure transaction process.

Magento stores that spend money on checkout optimization often enjoy low cart abandonment fees and progressive shopper happiness.

Thanks to its vast Magento information, Amasty develops checkout solutions that integrate technical reliability with person-centric design. Their Magento extensions depend on the help of international merchants as they cope with real e-commerce challenges, while the latter is well suited with Magento updates and custom store layouts.

Enhancing Product Visibility with Visual Marketing Tools

Visual communication is extraordinarily important in e-commerce. Customers make quick decisions primarily based on what they see, and revealing important items can have a tremendous impact on purchasing behavior.

It’s there magento sticker extension. Magento is especially valuable for store owners.

Product stickers help merchants emphasize the use of a particular product brand, which includes:

• Best Seller
• Newcomers
• Limited Offer
• Sales
• Instinct
• It’s sold out
• Free shipping

These visual factors immediately capture the buyer’s attention and help in making manual buying decisions.

Why Product Stickers Improve Conversion Rates

Product stickers aren’t just decorative gadgets. They have a strategic advertising position in online stores.

Increased product visibility

Highlighted product should stand out in crowded listings and encourage more clicks and engagement.

Excellent advertising communications

Customers can immediately be aware of discounts, special gifts, or products that are on sale without having to check those exact ads.

Faster Decision Making

Visual cues simplify surfing and reduce the time customers spend comparing products.

Improved User Experience

Well-designed product labels make shopping extra intuitive and enjoyable.

For Magento stores with huge inventories, product stickers help rank specialty products and seasonal offers nicely.

Experienced Magento builders know how to combine visual ads and marketing ad tools without negatively impacting page speed or usability. Amasty has emerged as a leading authority in this field with the help of creating optimized Magento extensions for stability capabilities, layout, and functionality.

Why Businesses Trust Amasty for Magento Development

Magento development requires advanced technical knowledge and deep knowledge of e-business operations. Poorly optimized extensions or inconsistent optimization can, in turn, bring websites down, create maintenance weaknesses, or hinder user enjoyment.

Amasty has built a strong recognition within the Magento environment due to:

• Long-term Magento expertise
• Extensive Detail Department
• Focus on Optimizing Performance
• Reliable Customer Support
• Ongoing Product Updates
• Compliance with Magento Standards

The agency’s responses are designed to help companies address real-world operational marketing challenges while maintaining overall store performance

Magento merchants often choose Amasty because of the areas in which the company consistently demonstrates knowledge:

• Box Customization
• Layered Navigation
• Boosting search
• Shop the product
• SEO Updates
• User Experience Optimization

Their dedication to innovation and Magento-focused improvements has made them an iconic flagship among post-e-commerce companies.

The Future of Magento eCommerce Development

The fate of e-commerce will continue to be closely aware of personalization, automation, and the in-person experience. Magento stores that spend money on advanced functionality these days should be better able to compete in a growing number of crowded online marketplaces.

The main characteristics that make up Magento development are:

• AI-Powered Personalization
• Faster Cell Tests
• Streamlined checkout systems
• visual processing tools
• Advanced Search Functionality
• Headless Commerce Architecture

Businesses that have already adopted this technology can support user retention, boost conversions, and increase loyalty.

Magento’s flexibility makes it a perfect platform to implement these improvements, but the other execution requires experienced improvement followers.

Manchester firm says deal ‘has added significant scale to our Midlands credentials’

Manchester IT and telecoms specialist Novem has made its fifth acquisition as it looks to continue its national growth.

Novem completed its first acquisition in 2023 alongside Independence Capital and UK private credit investor TDC. In its latest deal, it has acquired Intalect, a managed IT services provider based in Hinckley, Leicestershire.

Novem is led by Alex Heslip and Chris Earle and focuses on SME clients. Its bosses aim to combine organic growth with targeted acquisitions and today it has a team of more than 75 people across several UK businesses.

Intalect was founded in 2004 and offers managed IT services including cybersecurity, disaster recovery and VOIP.

Richard Hamilton, co-founder and director of Intalect, said: “From day one, Intalect was built around providing enterprise-level IT and support to UK SMEs, and Novem shares that exact mindset. Becoming part of the group gives our customers access to an enhanced range of services without losing the quality or care they value. It’s a strong platform for the next phase of growth.”

Alex Heslip, CEO of Novem, said: “The addition of Intalect has added significant scale to our Midlands credentials, bringing valuable additional skills and strong customer relationships. We’re very excited about the opening of our new Midlands ‘Hub’ office in Coventry, where our people will collaborate and deliver industry leading service from.

Jon Petty, investment director at TDC, said: “Since first supporting Alex and the team in 2023, Novem has continued to build on the growing demand for managed IT services, expanding its national platform all from a Manchester headquarters. This is exactly what we set out to do with our Impact Fund, providing the capital needed for Northern businesses to scale at pace, all while accelerating local opportunity.”

DUBAI, United Arab Emirates — The Strait of Hormuz, the narrow waterway linking the Persian Gulf to the Arabian Sea and critical for global energy supplies, stays under severe restriction more than two months after the outbreak of the U.S.-Israel war with Iran. Shipping traffic has plummeted to roughly 5% of pre-war levels, with only a handful of vessels transiting daily amid competing blockades, sporadic attacks and stalled ceasefire negotiations.

As of May 12, 2026, the strait is not fully closed to all shipping but functions under tight Iranian control and a U.S. naval blockade. Iran has redefined the area as a vastly expanded operational zone, stretching from Jask in the east to Siri Island in the west — roughly 10 times wider than before the conflict. The Islamic Revolutionary Guard Corps (IRGC) enforces selective passage, charging tolls and requiring detailed vessel information for approved transits.

Pre-war, the strait carried about 20-25% of global seaborne oil trade and 20% of liquefied natural gas (LNG), with roughly 138 vessels passing daily. Current data shows just 17 ships in the last 24 hours, moving only about 515,000 deadweight tons — a fraction of the normal 10.3 million. Dozens of vessels loiter outside the area, waiting for safer conditions, while more than 1,500 ships remain stranded inside the Persian Gulf.

Origins of the Crisis

Tensions exploded on Feb. 28, 2026, following U.S. and Israeli airstrikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei. Iran responded by restricting access to the strait, declaring vessels linked to the U.S., Israel and their allies as potential targets. On March 27, the IRGC formally announced a closure to adversarial shipping. The U.S. imposed its own blockade on April 13, targeting vessels entering or exiting Iranian ports.

Since then, at least 42 maritime incidents have been reported, including attacks on tankers, drone strikes and seizures. The U.S. has disabled multiple Iranian-flagged vessels, while Iran has conducted strikes on UAE targets and other shipping. A brief U.S. escort operation to guide ships through the strait was paused at Iran’s request to facilitate talks, but progress remains elusive.

Diplomatic Stalemate and Ceasefire Hopes

Ceasefire negotiations hang in the balance. President Donald Trump dismissed Iran’s latest proposal as “garbage,” citing demands that the U.S. recognize Iranian sovereignty over the strait and lift the blockade before broader nuclear talks. Iran insists on control of the waterway as leverage. UN Secretary-General António Guterres has urged urgent de-escalation, warning that prolonged disruption threatens global food security and energy supplies, particularly in Africa.

Qatar has mediated some limited passages, including LNG shipments to Pakistan, but commercial traffic remains minimal. European nations including France and the UK have faced Iranian warnings against deploying naval forces to protect shipping.

Economic Ripple Effects

Oil prices have surged above $130 per barrel at times, though alternative routes and strategic reserves have mitigated immediate shortages. Global supply chains face delays, with shipping lines imposing war-risk surcharges up to $4,000 per container. Fertilizer and LNG flows have nearly halted, raising concerns for agriculture and energy in Asia and Europe.

Gulf producers like the UAE have rerouted some exports via pipelines or by turning off AIS transponders, but risks remain high. Iraq has revived overland routes through Syria for some crude shipments. Analysts warn that a prolonged closure could trigger demand destruction and long-term shifts in energy markets.

Military Posture and Risks

The IRGC Navy has expanded patrols and claims enhanced military significance for the enlarged zone. U.S. forces continue enforcing the blockade, with recent Pentagon-released footage showing strikes on Iranian tankers. Both sides report occasional skirmishes, though a fragile pause in major fighting holds for now.

Commercial operators avoid the area due to canceled insurance coverage and attack risks. Some vessels comply with Iranian rules — paying fees and declaring details — to secure safe passage, effectively acknowledging Tehran’s de facto control during the conflict.

Outlook and Potential Resolutions

No clear timeline exists for full reopening. Experts suggest that even after a ceasefire, clearing mines, restoring confidence and renegotiating security arrangements could take months. The U.S. has signaled willingness to resume escort operations if talks collapse, while Iran maintains it will keep restrictions until its demands are met.

The crisis underscores the strait’s enduring vulnerability as a geopolitical chokepoint. For now, selective transits by “friendly” or compliant vessels provide minimal relief, but the vast majority of global energy trade through the region remains paralyzed. As day 73 of restrictions passes, pressure mounts on negotiators in Washington, Tehran and regional capitals to find a path toward de-escalation before economic damage becomes irreversible.

Maritime security firms and insurers continue monitoring the situation closely. Shippers are advised to reroute via the Cape of Good Hope where possible, despite added costs and delays. The world watches as diplomacy struggles to reopen one of the planet’s most vital arteries for energy and commerce.

The share of new-build homes snapped up “off plan” before a single brick is laid has tumbled to its lowest level in more than a decade, in a fresh blow to the government’s ambition of delivering 1.5 million homes by the end of this parliament.

Research published by estate agency Hamptons reveals that just 33 per cent of new properties across England and Wales were sold prior to completion in 2025, down sharply from a peak of 49 per cent in 2016. The slide reflects a perfect storm battering the housebuilding sector, with buy-to-let landlords beating a retreat from the market, stubbornly high interest rates dampening buyer appetite, and construction costs continuing to spiral.

Off-plan sales have long served as the lifeblood of housebuilders’ cash flow, allowing developers to bank deposits and secure financing well before a project reaches completion. Their decline now threatens to push up the cost of capital across the industry at precisely the moment ministers are pressing for an acceleration in delivery.

The contraction has been driven, in large part, by the steady withdrawal of buy-to-let investors who have historically been voracious purchasers of off-plan stock, particularly flats in regeneration areas. The introduction of the 3 per cent second-home stamp duty surcharge in 2016 began the rot. That surcharge was hiked to 5 per cent at the end of 2024, and the Renters’ Rights Act, which came into force this month, has prompted a further wave of landlords to head for the exits rather than wrestle with rising costs and ever-tightening regulation.

First-time buyers, the other traditional mainstay of the off-plan market, are similarly hamstrung. Chain-free and typically flexible on timing, they have historically been natural candidates for purchases months ahead of completion. But higher borrowing costs, coupled with the closure of the government’s Help to Buy equity loan scheme in 2023, have squeezed many of them out of the picture entirely.

The pain is most acute in the flats sector, where investor and first-time buyer demand traditionally overlap. Just 22 per cent of new flats were sold off plan last year, a startling drop from 54 per cent in 2007.

Investors who remain in the game are increasingly looking north, where rental yields comfortably outstrip those available in the southern counties. In Oldham, Greater Manchester, an extraordinary 94 per cent of new flats were sold off plan last year, the highest share of any local authority in the country. London, by contrast, managed 65 per cent.

David Fell, lead analyst at Hamptons, warned that the structural shift away from high-density flats was creating fresh obstacles for ministers. “This move towards lower-density, house-led development is likely to make it harder for the government to significantly ramp up housing delivery,” he said.

Housebuilders, increasingly wary of carrying large blocks of flats on their balance sheets while they wait for buyers, are instead pivoting towards suburban housing schemes that sell more rapidly and limit exposure to rising financing costs. A Ministry of Housing assessment published at the end of March predicted the government would fall short of its 1.5 million target by some 400,000 homes.

The financial mathematics is becoming increasingly punishing for developers. Interest rates on construction loans are typically far higher than those attached to standard residential mortgages, meaning that every week a property sits unsold during the build phase adds materially to the cost base. Hamptons calculates that additional finance costs added £3,125 to the build cost per home last year, up from £2,934 in 2024. Roughly half of that increase, it says, is directly attributable to higher interest rates.

Material costs have piled further pressure on the sector. “Many of the materials needed to build new homes are highly energy-intensive, meaning their costs have risen far faster than wider inflation,” Fell added.

Separate research from the Home Builders Federation underlines the scale of the squeeze. The trade body calculates that the cost of building a new home has risen by an average of £76,000 since 2020, equivalent to 20 per cent of the total cost of constructing the average UK home. Some 40 per cent of that increase, it says, is attributable to government regulations and taxes, with the balance accounted for by material inflation and labour costs.

The financial consultancy RSM UK is among those calling for ministers to act decisively to revive momentum, with a particular focus on planning reform, lighter regulation and lower taxes on new construction.

Stacy Eden, partner and national head of real estate at RSM UK, said the picture was set to deteriorate further without intervention. “With costs set to escalate further due to the economic impact of the Iran conflict, the real estate industry urgently needs further support from government to make housebuilding more viable,” she warned.

For SME housebuilders in particular, who lack the deep balance sheets of the volume players, the squeeze on off-plan sales risks tipping marginal sites from viable to uneconomic, threatening both jobs and the government’s headline housing ambitions.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

Manchester business saw a more than 12 per cent fall in sales to £52.2m for the six months to the end of March

On the Beach has seen one of its most severe single-day share price collapses as investors grow anxious over a slowdown in holiday bookings.

Shares in the Manchester-headquartered company tumbled 17 per cent to 140p in morning trading after the Manchester firm revealed sales had dropped by more than 12 per cent to £52.2m during the six months to the end of March.

The business recorded a pre-tax loss of £3.2m for the period, a reversal from the £4.5m profit achieved the year before.

On the Beach attributed the revenue decline to “an industry-wide later booking profile which is continuing to build as customers book higher value summer holidays closer to departure.”

Chief executive Shaun Morton explained to City AM: “This was a trend we started to see in the back end of last year – customers booking a bit closer to the departure date. That’s generally a reflection of confidence and what the customer thinks their household balance sheet will look like in the future.

“So this tells us that customers are less confident at the moment but so far it doesn’t tell us that customers are any less likely to travel.”

Mr Morton noted that booking prices for items such as flights and accommodation had remained broadly stable for the peak summer period this year versus last year, though “certainly for what people are booking now that’s departing in the next month or so, we are seeing the prices lower this year than last year,” as “there is a lot of capacity in the market at the moment.” He noted that website conversion rates had improved and customers were generally spending less time browsing before making a purchase, suggesting Brits are more inclined to research destinations beforehand rather than hunting for bargains.

On the Beach shares have tumbled by more than a third since the beginning of the year amid a broader sell-off of leisure stocks that have been battered by travel disruption and spiralling fuel costs following the outbreak of war in Iran in February.

Easyjet shares are down 30 per cent since January, while Ryanair has fallen 22 per cent and Premier Inn owner Whitbread has slipped 10 per cent.

Britain’s labour market is bracing for its sharpest contraction in years, with more than 160,000 roles forecast to vanish over the course of 2026 as anaemic growth and stubbornly high energy bills combine to squeeze employers across the country’s industrial heartlands.

The grim assessment comes from the Item Club, the independent forecaster that runs its projections through the very same economic model used by the Treasury to stress-test government policy. According to its latest analysis, a net 163,000 jobs will disappear this year, representing a 0.4 per cent decline in total employment and dealing a fresh blow to a workforce already feeling the strain of 18 months of cooling demand.

For Britain’s small and medium-sized employers, the report makes for sobering reading. The pain, the Item Club warns, will fall disproportionately on energy-intensive manufacturers, the construction trade and the high street, three sectors that between them prop up tens of thousands of SMEs and the supply chains that orbit them. As disposable incomes are eroded, consumer-facing businesses in retail, hospitality and food service are expected to feel a secondary shockwave.

“The hit will be felt in lower-income regions where consumers typically have less rainy-day savings, which will reduce spending in the retail and hospitality sectors,” said Tim Lyne, an adviser to the Item Club, in a candid assessment of how the downturn will play out beyond the M25.

The geographical pattern of the squeeze will be uneven and, in places, severe. Birmingham’s unemployment rate is forecast to climb from 6.7 per cent to 7.8 per cent over the year, while Glasgow is on course to break through the 5 per cent mark from a 4.3 per cent average in 2025. Cambridge stands as the lone exception among Britain’s major cities, with overall employment expected to edge modestly higher on the back of its knowledge-economy base.

Nationally, the jobless rate, which brushed 5 per cent at the close of last year, is heading for 5.1 per cent in the coming months, up from 4.9 per cent in the most recent official figures published by the Bank of England.

Official growth data due this week is expected to confirm that the economy expanded by around 0.3 per cent in the first quarter of 2026, a modest improvement on the 0.1 per cent recorded in the final three months of 2025, but hardly the kind of momentum that creates jobs at scale.

A separate survey from KPMG and the Recruitment and Employment Confederation lends weight to the gloomier outlook. Permanent placements across the economy fell in April at their fastest rate since the start of the year, while demand for temporary staff climbed to its highest level since 2023, as employers hedged their bets on hiring commitments.

Neil Carberry, chief executive of the REC, said the trend reflected a “preference for short-term staff at some firms who wanted to push ahead with business development and expansion plans” against an uncertain backdrop. “Businesses will be particularly concerned about the impact on inflation, their borrowing costs and any disruption to wider supply chains,” he added, alluding to the lingering aftershocks of the conflict in Iran.

For business owners, the message is one many will recognise from the past two years: keep options open, keep headcount flexible, and assume that the cost of capital will remain elevated for longer than is comfortable.

The Item Club expects the only meaningful employment growth this year to come from publicly funded corners of the economy, education, health and social care, but its analysts are blunt that this expansion is “unlikely to offset losses in larger, more demand-sensitive sectors”. In short: the state will hire, but it will not hire enough.

For SMEs, the most worrying signal in the report is the speed at which higher interest rates and elevated inflation feed through to recruitment freezes and redundancies. With wage settlements still running ahead of productivity gains, and with energy contracts due for renewal across thousands of mid-sized industrial businesses this summer, the path of least resistance for many owner-managers will be to thin payrolls rather than expand them.

One silver lining is the gradual improvement in economic inactivity rates, as more people who left the workforce during and after the pandemic are now returning to look for work. But with vacancies falling and the labour market loosening, that fresh supply of jobseekers may find conditions tougher than they were even a year ago.

The Item Club’s projections, drawn from the Treasury’s own model, are typically used by policymakers to scrutinise the government’s claims about its economic agenda. On this occasion, they offer ministers little political cover and Britain’s job creators even less.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

This article was written by

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