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The Lead The UK's unemployment rate has unexpectedly jumped back to 5% in March, according to the Office for National Statistics (ONS). This development is likely to disappoint Chancellor Rachel Reeves, who had hoped to claim that she had brought stability to the economy and public finances in 2026. Unemployment Rate Reverses Previous Gains The unemployment rate had previously fallen to 4.9% in February, but it ticked back up to 5% between January and March. This is the first set of figures affected by the conflict in Iran. Economic Impact of the Iran War The Iran war has unleashed a fresh wave of inflation and rocked business confidence. The number of payrolled jobs in the economy fell by 100,000, or 0.3%, in April, according to more timely employment data using PAYE data from HMRC. Wage Growth at a Five-Year Low Regular pay, excluding bonuses, increased at a rate of just 3.4% from January to March, the weakest rate since August-October 2020. In the private sector, regular pay growth was just 3%. Monetary Policy Implications The Bank of England's monetary policy committee (MPC) will have to decide whether to raise interest rates next month to forestall second-round effects. However, the weakness of the labour market is a vital factor they are monitoring, and some economists believe that this data will allow the MPC to stay on hold for longer. Political Implications For Reeves and her boss Keir Starmer, the data suggest that while the International Monetary Fund may have given the chancellor their seal of approval, households hit hard by rising unemployment and squeezed living standards are unlikely to be feeling sympathetic.

The Looming China Shock Europe is facing a fresh China shock that threatens to cannibalise local factories, leading to job losses and de facto colonisation of industry by Beijing, trade analysts and representatives have said. The Event Details They fear the plunging exchange rate and support for Chinese “zombie firms” has echoes of the crisis in the US 25 years ago when the term “China shock” was coined. It referred to the impact of China bursting on to the global trade stage after becoming a member of the World Trade Organization, with soaring imports displacing local industries and causing the loss of up to 2.5m jobs. The Data Analysis EU imports 52% of amino acids from China by value, but 88% by volume. 96% of EU imports of polyhydric alcohols by volume come from China. China's surplus with Germany doubled from $12bn to $25bn between 2024 and 2025. An estimated 250,000 industrial jobs have been lost in Germany since 2019. The Impact Analysis Jens Eskelund, the president of the European Chamber of Commerce in Beijing, said: “When people think of China imports, they think of finished goods like EVs [electric vehicles] but that is not where the problem is. It is the sheer volume of components being imported from China. If anything, Europe is getting more dependent on China.” The Prediction Andrew Small, the director of the Asia programme at the European Council on Foreign Relations, said: “All of the China shock dynamics are holding – the tools used so far by the EU are not commensurate with the import levels.” The EU is considering measures to safeguard industry, including forcing European companies to buy critical components from at least three different suppliers.

The Growing Concern Over AI's Economic ImpactOne in three university students in Great Britain believe that artificial intelligence will eliminate jobs so rapidly that it will trigger civil unrest, according to a new survey by King's College London (KCL). This significant finding highlights the deep concerns among educated young people about the potential societal consequences of rapid technological advancement.The poll, conducted by the King's Institute for Artificial Intelligence and the KCL Policy Institute, represents the first major tracking study of attitudes toward AI across different segments of British society. It compares responses from university students, young people aged 16 to 29, employers, and the general public.Student Usage Patterns and PessimismUniversity students emerge as among the heaviest users of AI technology, with 77% reporting using it at least a few times a month—substantially higher than the 46% of workers who do so. Additionally, 27% of students use AI daily or almost daily, indicating deep integration of these tools into academic life.Despite their familiarity with AI, students express significant pessimism about its economic consequences. More than half are convinced that job losses resulting from AI will be more severe than those in a typical recession. This pessimism is particularly notable given that students generally hold more positive views about AI's overall impact on humanity compared to the general public.Key Statistics from the AI Attitudes Survey34% of university students believe AI will eliminate jobs fast enough to cause civil unrest (compared to 22% of the general public)77% of university students use AI at least a few times a month (compared to 46% of workers)27% of university students use AI daily or almost daily52% of male university students believe AI is positive for humanity (compared to 24% of the general public)9 out of 10 university students have encountered problems with AI, most commonly factual errors (37%) and made-up sources (31%)78% of students would still choose to attend university, though 30% would have selected a different subjectImplications for Education and the WorkforceThe survey reveals a significant gap between students' perceptions of their preparedness for an AI-shaped job market and their actual experiences. While 60% believe universities are capable of preparing them for this future, only 36% report actually receiving adequate preparation.This disconnect suggests that educational institutions may be struggling to adapt curricula and teaching methods to address the rapidly evolving technological landscape. The findings also highlight gender differences in how students perceive AI's impact on their cognitive abilities, with male students more likely to believe AI enhances their thinking skills while female students tend to hold the opposite view.Divergent Views on AI's FutureThe poll captures contrasting perspectives on AI's potential impact. Bobby Duffy, director of the KCL Policy Institute, emphasizes the widespread concern about AI's effect on employment, particularly at entry-level positions, and its broader implications for young people and the economy.In contrast, Bouke Klein Teeselink, a lecturer in philosophy, politics, and economics at KCL, offers a more optimistic outlook. He suggests that with appropriate training, policies, and institutional support, AI could lead to increased productivity, expanded opportunities, higher incomes, and accelerated scientific progress.These divergent views reflect the broader societal debate about artificial intelligence—balancing legitimate concerns about displacement and inequality against the potential benefits of technological advancement.

The World Cup as a Diplomatic Opportunity Canada's sports minister, Adam van Koeverden, has expressed confidence that hosting the World Cup this summer could be the key to agreeing a new trilateral trade deal with the United States and Mexico. Trade Agreement Review Deadline Approaches The three World Cup hosts are facing a deadline of 1 July for a mandatory review of the existing free trade agreement between the countries, the USMCA. Initial discussions have been problematic, with Donald Trump suspending formal discussions with Canada last October and floating the idea of scrapping USMCA in favour of separate bilateral trade deals. Informal Talks During the World Cup However, van Koeverden believes that informal talks during the World Cup could help smooth the path to a deal, as Trump, Mexican president Claudia Sheinbaum and Canadian prime minister Mark Carney are all due to attend matches. Economic Benefits of Hosting the World Cup The Canadian government has forecast a $2bn boost to GDP from staging the World Cup, and has committed to investing $755m in a four-pronged legacy programme to boost participation. The Future of Canada-US-Mexico Relations Van Koeverden added that sport is fundamental to Canada's economy and that hosting the World Cup is a great way to demonstrate how powerful sport can be in creating jobs, creating opportunity, showcasing Canada to the rest of the world, and growing the economy.

The Backlash Against Eric Schmidt's AI Remarks Former Google CEO Eric Schmidt faced a hostile reception from students at a University of Arizona commencement address on Sunday, May 18, 2026. Schmidt, who led Google for over a decade and acquired a multi-billion dollar fortune, spoke to around 10,000 graduating students about the impact of modern technology on society. Schmidt's Words on AI and Its Effects Schmidt discussed the evolution of technology, from laptops to smartphones, the internet, and social media. He noted that while these tools were meant to connect people and add to human knowledge, they have also led to isolation and degradation of the public square. Schmidt acknowledged that AI has unsettled young people, saying "That was not the plan, but it happened." He recognized that students are fearful that AI threatens to deprive them of a future, saying "There is a fear in your generation that the future has already been written, that the machines are coming, that the jobs are evaporating, that the climate is breaking, that politics are fractured, and that you are inheriting a mess that you did not create." The Data Analysis: Student Anxiety and AI A Pew Research Center study found that about half of Americans feel "more concerned than excited" about the increased prevalence of AI in their daily lives. This anxiety may be more pronounced in areas where technology can easily replicate information technology work, reshaping the workforce. The Impact Analysis: Polarization and Job Market Fears Schmidt's remarks struck a nerve with the students, who shouted and jeered when he discussed AI's potential to deprive them of a future. This reaction comes amid growing concerns about AI's impact on the job market and society as a whole. The Prediction: Shaping the Future of AI Schmidt encouraged students to adapt and shape how AI will be used in the future, rather than letting it shape them. He emphasized that the question is not whether AI will shape the world, but whether students will have shaped AI. In contrast, Jensen Huang, Nvidia's CEO, recently told graduates at Carnegie Mellon University that there's no better time to "begin your life's work" than now, arguing that AI will be a net positive for humanity and create new opportunities for young people.

The Graduation Backlash Against AIDuring the 2026 commencement season at American universities, several speakers faced unexpected pushback when mentioning artificial intelligence. Students at the University of Central Florida and University of Arizona booed executives who highlighted AI's role in the future, reflecting growing concerns about job prospects and the direction of technological advancement.When AI Became the Third Rail at GraduationsGloria Caulfield, an executive at real estate firm Tavistock Development Company, gave a speech at the University of Central Florida where she declared, "The rise of artificial intelligence is the next industrial revolution." The students in the audience responded with increasingly loud booing, causing Caulfield to pause and remark, "Okay, I struck a chord."Former Google CEO Eric Schmidt faced similar resistance at the University of Arizona. Despite ongoing controversy over a lawsuit accusing him of sexual assault (which he denies), Schmidt also encountered boos when he told students, "You will help shape artificial intelligence." He attempted to continue by emphasizing the opportunities AI presents, but the booing persisted.Not all AI-focused speeches faced backlash. Nvidia CEO Jensen Huang spoke at Carnegie Mellon's commencement without audible pushback when he noted that AI has "reinvented computing."The Economic Anxiety Behind the BooingThe negative reactions may stem from broader economic concerns. A recent Gallup poll revealed that only 43% of Americans aged 15 to 34 believe it's a good time to find a job locally, a significant drop from 75% in 2022. This pessimism reflects growing anxiety about employment prospects in an increasingly automated world.Even tech industry workers express concerns about AI's impact on employment, with journalist and tech critic Brian Merchant suggesting that AI has become "the cruel new face of hyper-scaling capitalism."Generational Divide on Technology's FutureThe backlash highlights a significant generational divide in how technology's future is perceived. While older generations often present AI as an inevitable and beneficial progression, many younger graduates view it with skepticism and fear.Schmidt himself acknowledged this divide, noting "a fear in your generation that the future has already been written, that the machines are coming, that the jobs are evaporating, that the climate is breaking, and that politics are fractured."The specific context of each speech also influenced reception. Caulfield, addressing arts and humanities graduates, may have misread her audience by beginning with "generic" praise of corporate executives like Jeff Bezos before introducing the topic of AI.The Future of Commencement MessagingAs AI continues to reshape industries and job markets, commencement speakers will need to address these concerns more directly and thoughtfully. The backlash suggests that simply celebrating technological advancement without acknowledging its challenges will no longer resonate with graduating students.Moving forward, successful commencement speeches may need to balance optimism about technological possibilities with realistic acknowledgment of the economic and social challenges ahead. The focus may shift from celebrating AI itself to discussing how graduates can navigate and shape a future where AI plays an increasingly prominent role.

The Rise of Modest Fashion At Paris Modest Fashion Week last month, influencers, buyers and journalists crowded into the historic halls of Hotel La Marois as models prepared to emerge onto the runway in embellished satin tailoring, corseted silhouettes and full-coverage eveningwear. Breaking Cultural Barriers The country’s fraught relationship with visible expressions of Muslim identity makes it a meaningful, if not ironic, destination for the latest instalment of Modest Fashion Week, which is organised by Think Fashion and has previously held events in cities like Jakarta, Istanbul, Abu Dhabi and Amsterdam. The Data Analysis Over the past decade, modesty has been reshaping retail, influencing fashion houses far beyond the Gulf. Muslim spending on fashion is forecasted to reach $433bn by 2028, according to DinarStandard’s State of the Global Islamic Economy report, as luxury brands, department stores and trend forecasters increasingly recognise modest fashion as one of the industry’s fastest-growing consumer markets. The Impact Analysis Modest fashion’s mainstream makeover must also credit Muslim influencers and designers on social media, who built highly engaged global audiences long before luxury fashion fully understood their commercial value. By the late 2010s, brands were flying hijabi influencers like British-Egyptian Dina Torkia, Kuwaiti Ascia al-Faraj and Palestinian-Puerto Rican Maria Alia, to fashion weeks in New York, London and Milan, dressing them in curated looks and positioning them within the front rows of luxury culture. The Prediction As modesty increasingly expands from a retail niche to a much larger sector with international demand, new opportunities have emerged — from hijabi models and content creators to behind-the-scenes jobs in marketing, design and development. A decade ago, the industry barely existed in institutional terms, reflects Rabia Zargarpur, who has evolved from a clothing designer to a consultant, mentoring entrepreneurs and helping build fashion ecosystems.

Andy Burnham has urged Labour to place energy and water back under public control, framing mass renationalisation as a core pillar of his policy platform ahead of a potential byelection in Makerfield. The Greater Manchester mayor’s comments arrive amid Labour’s post‑local‑election turmoil and a looming challenge from Reform UK in the constituency.Burnham’s Renationalisation Blueprint for Energy and WaterSpeaking to Channel 4 News, Burnham argued that decades of deindustrialisation and privatisation have left communities “without good jobs and unable to afford the basics.” He proposed a “different path” that puts energy, water, housing and transport back under stronger public control, citing his successful public‑ownership of Greater Manchester buses as a model.Electoral Landscape in Makerfield: Reform UK’s Surge and Labour’s ChallengeIncumbent MP Josh Simons announced he will stand aside to allow Burnham to contest the byelection.Reform UK captured nearly 50% of votes across the constituency’s eight council wards in the recent local elections.Labour has not yet selected an official candidate, but Downing Street has signalled it would not block Burnham’s attempt.Implications for Labour’s Policy Direction and the Wider UK Debate on Public OwnershipIf Burnham secures the candidacy and wins the seat, his renationalisation agenda could push Labour to adopt a more left‑leaning platform, reviving public‑ownership debates that have been dormant since the Thatcher era. The proposal also tests the party’s ability to reconcile its soft‑left faction with the broader electorate, especially in traditionally industrial heartlands.What Lies Ahead: Potential Paths for Burnham and Labour’s Renationalisation AgendaSuccessful byelection win would give Burnham a parliamentary platform to champion public‑ownership legislation.A strong Reform UK showing could force Labour to temper its renationalisation rhetoric or risk losing the seat.Internal Labour dynamics may shift, with pressure on Keir Starmer to outline a clear timetable for leadership transition.Public reaction to the energy‑and‑water proposal will likely influence broader policy discussions on utilities across the UK.

The Personal Mission Behind the InvestmentReed Jobs, son of Apple co-founder Steve Jobs, is bringing his oncology-focused venture capital fund Yosemite to the UK, seeking investment opportunities in cancer care. The 34-year-old's mission is deeply personal, stemming from witnessing his father's death from a rare form of pancreatic cancer in 2011 at age 56. "I saw my dad have cancer when I was a kid, and unfortunately that happens far too often. And that really motivated me to try to transform outcomes for other people out there," Jobs explains.Yosemite's Healthcare Investment StrategyThe San Francisco-based venture fund, named after the California national park where his parents married, manages over $1 billion in assets and has already invested in approximately 20 healthcare startups. Yosemite focuses on innovative approaches to cancer treatment, including gene therapy, cancer vaccines, radiopharmaceuticals, and artificial intelligence. Notable investments include Tune Therapeutics, Azalea Therapeutics, Chai Discovery, and Sage Care in the US, with several UK companies in their portfolio that haven't been publicly announced.Financial Backing and International PartnershipsYosemite receives investment from LifeArc, a UK not-for-profit group focused on rare diseases that was established in 2000 as part of the UK's Medical Research Council. The fund also has partnerships with Oxford and Cambridge universities, where it has provided philanthropic grants. Additional backing comes from US biotech company Amgen, Massachusetts Institute of Technology, Memorial Sloan Kettering Cancer Center in New York, and billionaire investor John Doerr, following a fundraiser earlier this year.UK's Position in Global Cancer Research"Research here is world class," Jobs states during his visit to London for a life sciences conference hosted by LifeArc. The UK's strong academic institutions and research environment make it an attractive location for healthcare investment. Yosemite's international investment strategy includes the UK, where the fund aims to connect with pharmaceutical partners and academics to advance cancer treatment possibilities.Future Vision for Cancer TreatmentJobs envisions a future where cancer shifts from being an "end-stage disease" to an illness that is diagnosed early, monitored, and treated—similar to advances made with HIV and cardiovascular disease. "Today far too many cancers are either diagnosed incidentally, because there's no good early biomarker, or only diagnosed once they are metastatic and extremely advanced," he notes. The fund is particularly focused on immunotherapy, which Jobs identifies as "one of the areas I think is going to have the most promise for patients in the next couple of decades."