Your commercial news round-up: economy, train strikes, unemployment, A-level results

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The UK economy continued to grow over the second quarter of 2024 and train strikes may end soon as Aslef and the Department for Transport reach a pay deal. Meanwhile, unemployment decreases despite wage growth slowing, and A-level students receive the best results since 2010. Read on to find out more.

The UK economy grew by 0.6% between April and June, following a 0.7% increase in the first quarter of the year. This growth was driven by the services sector, particularly the IT industry, legal services and scientific research. However, growth was flat in June, in part due to the strike action by junior doctors. Economists have warned that growth may slow in the second half of the year. The Bank of England recently cut interest rates to 5% and further rate cuts are expected to take place to boost the construction sector.

Train drivers in England may soon end their long-running strike action as their union, Aslef, and the Department for Transport have reached a new pay deal for drivers to vote on. The proposed deal includes a 5% backdated pay rise for 2022/23, a 4.75% rise for 2023/24 and a 4.5% increase for 2024/25. Aslef has described the offer as a "no-strings" deal, meaning it’s not conditional on changes to working practices. If accepted by train drivers, the deal could bring an end to the industrial action that’s spanned over two years and led to thousands of cancelled services. The Rail Delivery Group stated that the pay rises would bring the average annual pay for a driver to £65,000. However, the conditions attached to the pay offer, such as changes to training and rosters, have been a point of contention.

The UK's unemployment rate has slightly decreased to 4.2% in the three months leading up to June, down from 4.4% in the previous quarter. However, wage growth has continued to slow, rising at an annual rate of 5.4%, the weakest in around two years. The Office for National Statistics (ONS) cautioned against placing too much weight on the jobs figures due to a smaller number of respondents in the Labour Force Survey over the past year. The ONS also noted signs of a cooling job market, with high numbers of vacancies, redundancies and individuals not actively seeking work. The figures may lead to further interest rate cuts by the Bank of England this year. The Resolution Foundation highlighted that there’s been a rise in young people with long-term health conditions who are not working or seeking work. The organisation suggested that improving healthcare provision, particularly mental health care, could address this trend.

Meanwhile, in schools, A-level students in England have achieved the best results since 2010, with a higher proportion of A* and A grades awarded compared to previous years. Strong performances in maths and sciences contributed to the success, with a record 42% of 18-year-olds in England achieving A* or A grades in maths. However, Wales and Northern Ireland saw a decrease in the proportion of top grades awarded compared to last year. Despite this, results in Northern Ireland remained better than those in England. Private schools and state grammar schools saw significant increases in A* and A grades, while academies and comprehensives also saw improvements. However, regional and social inequalities in grade distribution were still noted. Universities reported accepting record numbers of applicants from disadvantaged backgrounds, with 27,600 18-year-olds from disadvantaged backgrounds accepting places.

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