More job vacancies than unemployed for first time on record

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18th May 2022

Bite-sized business news from the UK and beyond

Good morning Last week Facebook owner Meta opened its first physical store to showcase its new virtual reality headsets. Right now, only 26% of teens own a VR headset and a mere 5% use it on a daily basis. Hence why Meta is – ironically - really counting on these in-person experiences to hype up the metaverse. And considering the company has used over $10bn to create the unique platform, Meta are believers through and through, even if it takes until 2032. Talk about being in it for the long haul.

Today's stories

Tight spot – More job vacancies than unemployed for first time on record
Access denied – Big Tech signal the end of passwords

ECONOMY
More job vacancies than unemployed for first time on record

What happened?
Official data released yesterday showed that the number of job vacancies reached a new record of 1.3m meaning that there are now more open roles than people looking for work for the first time since records began almost 50 years ago.

The data paints a picture of a mixed jobs market
On the one hand, there’s cause for celebration: the unemployment rate fell to 3.7% from 3.8% in the three months to March - the lowest since 1974 and below where it was before the pandemic.

Firms are scrambling to hire leading to fierce competition for workers. Retail, banking and travel are just a few of the sectors offering generous bonuses to attract talent.

But on the other hand, after adjusting for inflation wages excluding bonuses fell by 1.9% compared to a year earlier, the biggest decline since 2013.

The gap between wage growth and inflation is set to widen further with consumer prices on track to reach 10% before the end of 2022.

Where have all the workers gone?
Since the start of the pandemic around 500,000 people have left the labour force driven by:

The early retirement of nearly 250,000 over 50s.
The exodus of EU citizens following Brexit especially in the fruit picking, HGV driving and hospitality sectors.
The rise in the number of people reporting being long term sick.

It leaves tough decisions for policymakers
Inflation data due out this morning is forecast to show prices increased by 9% in the 12 months to April – well above the Bank of England’s target of 2%. The Bank has been raising interest rates for the past six months to try to cool the demand for labour and, with it, upward pressure on pay but, in doing so, it knows it will squeeze living standards further.

Other stories to keep you in the loop

Tesco to pay out more to pig farmers as industry warns of ‘critical’ situation
Netflix lays off 150 employees amid subscriber decline
Buzzfeed runs out of buzz as losses swell and time spent on sites dwindle
London ‘buy now, pay later’ startup Zilch heads to Miami
Elon Musk warns Twitter deal stuck without fake account proof
Obamas and Airbnb CEO launch $100m scholarship
Global firms are boosting baby formula supplies in the US

TECH
Big Tech signals the end of passwords

What happened?
Passwords have been a feature of the internet for decades but they are the root cause of 81% of data breaches. And although we all know we’re not supposed to reuse them, due to the raft of online accounts people have, 65% of us do.

But their days could be numbered. Apple, Google, and Microsoft will roll out no-password login options over the coming year.

How would it work
Instead of using a password, users sign in with their mobile phone or other devices — similar to 2-factor authentication. But this method is called “public key cryptography.”

When someone creates an account a key pair is generated - a private one for the user’s phone and another one for the website. Keys are long connected numbers. For example, a private key could be 2 long prime numbers, and a public key would be what you’d get if you multiplied them.

But you won’t see these digits. You log in the same way you unlock your phone (e.g., entering a PIN or scanning your fingerprint). Your phone verifies with the website that you have the right key and that lets you in.

Okay, but what if…
… someone steals your phone? They’d still need to complete the challenge, meaning they’d need to know your PIN (or have possession of your finger).

Meanwhile, your keys are backed up on the cloud, so you can store them on multiple devices in the event one is lost or damaged, or transfer them to new ones. It’s also beneficial as it protects against phishing attempts and people won’t even have to use a password during initial sign-up.

Are there any issues?
There are still hurdles. Not everyone has a smartphone or device new enough to adopt password-less logins.

And one survey found that while 85% of respondents wanted to use fewer passwords, 72% believed others would stick with passwords because it’s familiar.

Stat of the day

Nearly $500bn was wiped off the crypto market last week

Interesting links from around the web

How to suss out if someone is lying, according to science
The tool that tells you how to say “I told you so” in every professional way possible
5 places around the world where people live the longest

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More job vacancies than unemployed for first time on record

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