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UK Labour Market Exodus Drives Jobless Rate Down to 3.5%

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UK inflation raises to 41-year peak

Britain’s unemployment rate fell to its lowest since 1974 at 3.5% in the three months to August, but the drop was driven by a record jump in the number of people leaving the labour market, adding to the Bank of England’s headaches.

The number of people classed as inactive – neither in work nor looking for it – rose by 252,000 from the three months to May, the biggest such increase since records began in 1971, the Office for National Statistics said.
The BoE, which is also trying to stem financial market turmoil triggered by new Prime Minister Liz Truss’s unfunded tax cuts and her pledges to end the economic “orthodoxy”, is worried that the shrinking labour market will fuel inflation pressures.

“While there were tentative signs that the labour market is cooling from the red-hot conditions seen in recent months, the shortfall in labour supply is keeping it exceptionally tight,” Ruth Gregory, an economist at Capital Economics, said.

“That will maintain intense pressure on the Bank of England to raise rates aggressively over the coming months.”

The BoE has raised interest rates from 0.1% last December to their current level of 2.25%.

Investors are betting heavily on a full percentage-point increase in its next policy announcement on Nov. 3 as it moves to offset the inflationary implications of the tax cuts announced by finance minister Kwasi Kwarteng last month.

The ONS said there had been a spike in employment and a fall in inactivity in the three months to May which might, at least in part, explain some of the big change in the three months to August.

The 0.6 percentage points increase in the inactivity rate to 21.7% in the period was the biggest on record alongside the increase between March and May 2020 when the coronavirus pandemic hit Europe, the ONS said.

Economists polled had expected the jobless rate to remain at 3.6%.

The number of people in employment fell by 109,000 in the June-August period, less than a median forecast for a 155,000 drop in the Reuters poll.

Wages excluding bonuses rose by 5.4%, their highest growth rate since the three months to August 2021. The Reuters poll had pointed to a slightly smaller increase of 5.3%.

Including bonuses, wages rose by 6.0%, a bit stronger than the poll forecast of 5.9%.

But wages are rising by far less than inflation which came in at nearly 10% in the most recent data.

The number of job vacancies in the July-to-September period fell to 1.246 million, its lowest since late 2021 but still high by historical standards, underscoring the problems facing many employers struggling to fill their empty roles.

“The labour market remains extraordinarily tight with, for the first time ever, more vacancies in the economy than the number of people looking for work,” Kitty Ussher, chief economist at the Institute of Directors, said.

“Combined with such a low rate of unemployment and pay rises edging upwards, we see no reason why the Bank of England would pause its upward march of interest rate rises when it meets in early November.”

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Agriculture

Borno establishes Ministry of Livestock, Fishery Development

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Gov Zulum Initiates Efforts to Revive Transborder Trade with Chad

The Borno Government has announced the creation of Ministry of Livestock and Fishery Development to align its

Development strategy with Federal Government initiatives, and boost the state’s economic potential.

Gov. Babagana Zulum made the announcement on Tuesday during the swearing in of two commissioners at the council chambers of the Government House.

Zulum underscored the importance of livestock and fisheries as vital sectors with untapped revenue potential.

He emphasised that the new ministry would focus on high-yield livestock breeds, milk production and fisheries, targeting both domestic consumption and export opportunities.

The governor said that “no state government can make substantial money in livestock alone, but we believe with the right investment and political will, the sector can generate significant revenue.”

He said that the growing demand for milk by yogurt companies and the proximity of Maiduguri to Asian and Arab markets, are great opportunities for dairy exportation.

The governor, therefore, assigned the Deputy Governor, Dr Umar Kadafur, to oversee the activities of the new ministry, citing his practical experience and passion for livestock development.

He said “livestock development is not just about academic qualifications, it is about practice and the deputy governor has demonstrated capability in that regard.”

According to him, the ministry will prioritise procuring high-yielding livestock varieties, enhancing milk production and creating sustainable rural projects to support

Local communities.

He said that projects in Mafa, Gajiram and in Southern Borno will soon be launched under the new ministry’s purview.

The governor urged civil servants and ministry personnel to take ownership of the new initiative, adding that the ministry’s success would contribute to the states

Long-term economic stability and self-reliance.

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British High Commissioner seeks military, civilian efforts in tackling insecurity

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The British High Commissioner to Nigeria, Mr Richard Montgomery, has called for the combination of military and civilian efforts in tackling the complexity of security challenges in Nigeria and globally.

Montgomery made the call at a two-day Security and Justice Symposium organised by the Office of the National Security Adviser (ONSA) in Collaboration with the British High Commission, on Tuesday in Abuja.

He commended the efforts of the Nigerian military in promoting civil-military collaboration and adoption of kinetic and non-kinetic action in addressing the menace of terrorism and insurgency in the country.

“At the heart of all this is recognition of the importance of upholding the rule of law, human rights, humanitarian law and international humanitarian law.

“We need to consider the different legal principles and frameworks that apply to criminal violence or to violent conflicts and how we deal with them in protracted conflict zones.

“We had a legal frameworks roundtable with the Nigerian military officers earlier this year, and a really good debate about how we adapt to different situations.

“I am hoping today we will help progress that dialogue on which Nigerian legal frameworks are appropriate in which circumstances,’’ he said.

Montgomery highlighted the positive and open relationship between the UK and Nigeria, noting that both countries were learning from each other’s experiences in tackling security challenges.

He expressed his appreciation for the opportunity to continue this productive dialogue and hoped that the symposium would result in actionable insights and further strengthen the partnership.

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Zulum swears in 2 new commissioners

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Gov. Babagana Zulum of Borno on Tuesday presided over the swearing-in of two new commissioners to replace those who died while in active service.

The State Chief Judge, Justice Kashim Zannah, administered the oath of office at the ceremony held at the Government House in Maiduguri.

The new commissioners are Muhammad Lawan-Dalorima for the Ministry of Finance and Isa Haladu for the Ministry of Reconstruction, Resettlement and Rehabilitation (RRR).

In his speech, Zulum expressed gratitude to the Borno House of Assembly for their prompt scrutiny and confirmation of the nominees.

He urged the commissioners to uphold the principles of integrity, transparency, and accountability in their new roles, while emphasising the administration’s strategy of periodically rotating commissioners to different ministries to promote fresh ideas and effective governance.

“You have been chosen for your exceptional qualities and expertise. I have no doubt you will make valuable contributions to our administration,” he said.

The governor also paid tribute to the late commissioners who previously held the portfolios, reflecting on their contributions to the development of the state.

Responding on behalf of the commissioners, Haladu thanked the governor for finding them worthy of the appointment, and promised him of diligent service delivery.

 

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