LONDON: The number of people in work in Britain fell by the most since 2009 in the three months through June as the coronavirus crisis took a heavy toll on the labor market, even with the government’s huge jobs protection scheme still in place.
Led by a record plunge in self-employed workers, there were 220,000 less people employed in the second quarter, the Office for National Statistics said.
Separate tax data for July showed that the number of staff on company payrolls had fallen by 730,000 since March, sounding the alarm about a potentially much bigger rise in joblessness.
Mounting job losses are expected as Britain winds down its job retention scheme which protects employees. It is due to close at the end of October.
“The cracks evident in the latest batch of labor market data are likely to soon turn into a chasm,” said Ruth Gregory, senior economist at Capital Economics.
British finance minister Rishi Sunak said the figures showed the government’s support programs were working but job losses were inevitable.
“I’ve always been clear that we can’t protect every job, but ... we have a clear plan to protect, support and create jobs to ensure that nobody is left without hope,” he said.
The unemployment rate unexpectedly held at 3.9 percent but that reflected an increase in people who had given up looking for work and who were therefore not considered to be unemployed, and people who said they were in work but were getting no pay.
Economists polled by Reuters had expected the unemployment rate to rise to 4.2 percent. Last week the Bank of England forecast the jobless rate would hit 7.5 percent at the end of this year.
“Government needs to step in and help those who are likely to lose their job retrain for new openings in different sectors,” KPMG economist Yael Selfin said.
The number of self-employed people fell by a record amount in the three months to June, led by older workers, while the number of employees rose — something the ONS said was partly accounted for by workers reclassifying themselves as employed.
The number of people claiming universal credit — a benefit for the unemployed and those on low pay — rose to 2.689 million in July, leaping by 117 percent from March.
Pay fell by the most in more than 10 years in the April-June period, down 1.2 percent, reflecting how workers on the job retention scheme receive 80 percent of their pay. Excluding bonuses, pay fell for the first time since records began in 2001.
However, there was a small increase in job vacancies in the three months to July.
“The increase was driven by small businesses (less than 50 employees), some of which reported taking on staff to meet coronavirus (COVID-19) guidelines,” the ONS said.
UK suffers biggest job losses since 2009 as coronavirus takes toll
https://arab.news/j4s8t
UK suffers biggest job losses since 2009 as coronavirus takes toll
- Mounting job losses are expected as Britain winds down its job retention scheme which protects employees
UAE joins dividend surge as global payouts hit record $1.75tn in 2024
RIYADH: The UAE was among 17 countries setting new dividend records in 2024 as global payouts surged to a record $1.75 trillion, marking a 6.6 percent increase from the previous year, a new report showed.
According to research by trading platform eToro, UAE-listed companies maintained steady dividend distributions, driven by strong performances in the banking, energy, and real estate sectors.
This comes as Saudi-listed companies also made significant dividend moves in 2024, with energy firm Aramco declaring a total payout of $85.4 billion despite a drop in net profit, while Al Rajhi Bank’s total shareholder payments reached SR10.84 billion ($2.89 billion), combining a first-half cash dividend of SR5 billion and a second-half payout of SR5.84 billion.
“The financial sector has been a standout performer, with UAE banks benefiting from higher interest rates and economic expansion. Abu Dhabi Islamic Bank, for instance, raised its dividend payout to 50 percent of its annual profit, reflecting the sector’s robust earnings growth,” said Josh Gilbert, a market analyst at eToro.
Energy companies also played a significant role, with ADNOC Gas announcing a $3.41 billion dividend, supported by high oil prices and a commitment to 5 percent annual dividend growth.
In the real estate sector, Emaar Properties doubled its dividend to 8.8 billion dirhams ($2.4 billion), backed by record property sales and strong market demand.
For income-focused investors, dividends remain a core element of long-term strategies, providing consistent cash flow and potential for compounding returns.
“While 2024 saw record dividend distributions, certain increases, such as Emaar’s 100 percent payout of its share capital, may not be repeated annually. These sectors are cyclical, and dividends could fluctuate with market conditions,” Gilbert added.
Despite concerns about sustainability, UAE companies’ focus on shareholder returns highlights the market’s resilience. The country’s dividend growth outlook remains positive, supported by strong corporate earnings, favorable government policies, and continued investor interest.
Whether targeting high yields or steady income, the UAE remains an attractive market for global investors.
Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit
RIYADH: Lebanon has finalized 22 cooperation agreements with Saudi Arabia, setting the stage for a high-level visit next month to strengthen economic ties.
The delegation could be led by President Joseph Aoun, Prime Minister Nawaf Salam, or both, according to Lebanese Deputy Prime Minister Tarek Mitri in an interview with Asharq.
This comes as Saudi Crown Prince Mohammed bin Salman hosted President Aoun at the Royal Court in Al-Yamamah Palace on March 3 — Aoun’s first foreign visit since taking office — where they discussed Lebanon’s ongoing crisis and regional developments.
The agreements, covering sectors from agriculture to intellectual property, are seen as crucial to securing broader international aid for Lebanon’s struggling economy.
“This is a legitimate approach, and we must earn the trust of Arab nations and the international community,” Mitri said, emphasizing that Saudi Arabia’s support is vital for unlocking further international aid. He confirmed that the 22 agreements are fully drafted and ready for signing.
On his arrival, Aoun had expressed hope that his talks with the crown prince would pave the way for a follow-up visit to sign agreements aimed at strengthening cooperation between the two nations.
The deals cover a wide range of sectors, including intellectual property, consumer protection, and environmental management, as well as agriculture and water resources, Rabih El-Amine, chairman of the Lebanese Executives Council, told Arab News earlier this month.
El-Amine also pointed to agreements involving the Ministry of Information, the General Directorate of Civil Aviation, and Banque du Liban.
Mitri further revealed that Lebanon is working on an independent fund — separate from government institutions handling refugee affairs — in partnership with international organizations to oversee post-war reconstruction efforts. This move aims to boost credibility with donors, especially in the wake of the recent Hezbollah-Israeli conflict.
A World Bank report commissioned by the Lebanese government estimates the country needs roughly $11 billion for recovery and reconstruction. The report assessed damage across 10 key sectors, projecting infrastructure repairs at $3 billion to $5 billion in public sector funding, while housing, trade, industry, and tourism would require $6 billion to $8 billion in private investments.
Mitri also noted that France has expressed willingness to host a conference to support Lebanon’s recovery. French officials have proposed preparatory meetings or merging them into a single event, though no date has been set. The conference would prioritize humanitarian aid and reconstruction, while a separate investment-focused event aims to attract international figures.
Qatar to supply gas to Syria with US nod: sources
BEIRUT: Qatar is set to begin supplying Syria with gas via Jordan to boost the nation’s meager power supply, three people familiar with the matter said, in a move that a US official said had Washington’s approval.
PIF-backed Scopely acquires Pokemon GO maker for $3.5bn
RIYADH: Scopely, a US-based firm backed by Saudi Arabia’s Public Investment Fund, has signed a deal worth $3.5 billion to acquire the video game division of Niantic Labs.
In a press statement, Scopely said that the team employed to make games such as Pokemon GO, Monster Hunter Now and Pikmin Bloom are included in the acquisition.
This takeover aligns with the Kingdom’s ambitions to establish itself as a global gaming destination, with a national strategy aiming to ensure that the sector will contribute $13 billion to gross domestic product by 2030.
In April 2023, Savvy Games Group, wholly owned by PIF, acquired Scopely for $4.9 billion.
“Few games in the world have delivered the scale and longevity of ‘Pokemon GO,’ which reached over 100 million players just last year. The experience also stands apart for its unique ability to foster in-person connections, with Pokemon GO live events attracting millions of attendees,” said Tim O’Brien, chief revenue officer and board member of Scopely.
Despite being launched nearly a decade ago, Pokemon GO is still one of the most popular games in the world, with over 20 million weekly active players.
O’Brien added: “After spending time with the Niantic team, it quickly became clear that this organization shares our inclination to create industry-leading outcomes and exceptional player experiences. We look forward to a bright future ahead.”
The games business of Niantic Labs generated over $1 billion in revenue in 2024, according to the statement.
In a separate release, the US-based firm said it would distribute an extra $350 million to its equity holders under the deal, yielding a total value of approximately $3.85 billion for the company’s shareholders.
Niantic added that it will also spin off its geospatial AI business into a new firm named Niantic Spatial, under the leadership of its founder and CEO, John Hanke.
The company will be funded with $250 million of capital, including $200 million from Niantic’s balance sheet and a $50 million investment from Scopely.
“I’m confident our games will thrive with Scopely. I’ve often talked about building ‘forever games,’ and I believe they will continue to be just that,” Hanke wrote on his LinkedIn page.
Since the launch of Vision 2030, Saudi Arabia has been actively promoting the gaming industry, with PIF already holding stakes in major companies such as Nintendo, Electronic Arts, and Take-Two Interactive.
In 2024, the Kingdom also hosted the eSports World Cup, which carried a prize pool of over $60 million.
IEA sees global oil market surplus for 2025 as demand disappoints
LONDON: Global oil supply could exceed demand by around 600,000 barrels per day this year, the International Energy Agency said in a monthly oil market report on Thursday, after a downward revision to its 2025 demand growth forecast.
That surplus could grow by a further 400,000 bpd if OPEC+ extends its unwinding of output cuts, and fails to rein in overproduction against quotas, the Paris-based agency said.
The IEA revised down its 2025 oil demand growth forecast by 70,000 bpd to around 1 million bpd, with growth driven largely by Asia, specifically China’s petrochemical industry.
It added that demand for the last quarter of 2024 and the first quarter of this year had come in below expectations amid “an unusually uncertain macroeconomic climate.”
“New US tariffs, combined with escalating retaliatory measures, tilted macro risks to the downside. Recent oil demand data have underwhelmed, and growth estimates for 4Q24 and 1Q25 have been marginally downgraded,” said the agency.
