Politics
Rising UK youth unemployment tests govt over wage pledge

The rise in Britain’s youth unemployment rate to a 10-year high is posing tough questions for the country’s centre-left government about its policy of phasing out a lower minimum wage for younger workers.
Official figures this week showed Britain’s jobless rate for people aged 16-24 rose to 16.1% in the final quarter of last year, up from 13.8% in the middle of 2025 and a record low of under 9.2% during the Covid-19 pandemic. Youth unemployment in Britain now exceeds that in the euro zone.
Many business groups and economists blame a sharp increase in the minimum wage alongside last April’s increase in employer social security charges and broader economic headwinds, while the impact from greater use of artificial intelligence remains harder to prove.
UK low-paid vacancies fell faster than in Germany, France
Jack Kennedy, senior economist at job site Indeed, said vacancies for jobs paying close to the minimum wage in Britain had fallen more sharply than those for higher-paid roles over the past three years – the opposite trend to Germany or France.

“The UK really stands out in terms of the weakening that we’ve seen in lower-paid job postings,” Kennedy said. “That does definitely illustrate the extent to which low-wage postings in the UK have been hit by policy changes: the National Insurance increase, the minimum wage increases, and so forth.”
Ben Caswell, senior economist at the National Institute of Economic and Social Research, said official data showed some of the sharpest rises in unemployment in the private sector between April and October 2025 had come in hospitality and retail.
“It’s definitely impacting younger workers more,” he said.
The IT sector had also seen above-average job losses, possibly due to AI, but overall there was little evidence of firms investing more in labour-saving technology in response to higher labour costs, Caswell said.
UK minimum was has risen sharply
For most of the time since Britain introduced a minimum wage in 1999, there was little sign that it hurt jobs. The headline unemployment rate hit its lowest since the 1970s at 3.6% in 2022.

The previous Conservative government set a goal of raising the main minimum wage to two thirds of median earnings, making it one of the highest relative to earnings in Europe. It abolished lower minimum wage rates for workers aged 23-24 in 2021 and for 21 to 22-year-olds in 2024.
The current Labour government has pledged to end lower minimum pay rates for 18 to 20-year-old workers.
The main minimum wage rate now stands at £12.21 ($16.40) an hour – up 29% over the past three years – while the rate for 18 to 20-year-old workers has risen 46% to £10 an hour over the same period and is due to increase to £10.85 in April.
Approaches to youth minimum wage rates vary widely across Europe. France, which has a high minimum wage similar to Britain’s, does not lower it for younger workers except in certain training roles, while the Netherlands pays 18-year-olds half the hourly rate of those three years older.
Gareth Jones, managing director of In-Comm Training Services, said manufacturing and engineering firms, especially smaller ones, were becoming more reluctant to hire apprentices.
“There’s a lot of narrative around employers saying: ‘Why would we pay someone that’s completely unskilled that wage when we can get semi-skilled for the same or not too much more?’,” Jones said.
Tough market for job-hunters
For young people, finding work is often tough.

Alex Kelly, a 19-year-old film student, works at the bar of a working men’s club in southeast London near his family home, where he started washing glasses at the age of 16.
But the job does not offer reliable hours and he has not been able to find other work that fits around his studies.
“The applying process is really awful. If you do it online, then most of the time you’re not even getting a response,” Kelly said. “A lot of people I know have just stopped applying for jobs.”
Elsa Torres, 20, in her final year of a business studies degree in Liverpool, has been unable to find a part-time job, despite 70 applications, after the gastropub where she was a waitress closed down.
The Times reported on Wednesday that the government was considering abandoning its long-term plan to end the lower rate of pay for 18 to 20-year-olds.
In response, a government spokesperson said the minimum wage was going up “so that low-paid workers are properly rewarded”.
Minimum wage rates for 2027 will be set in October or November based on advice from a public body representing businesses, academics and trade unions.
Nye Cominetti, an economist at the Resolution Foundation, a think tank focused on issues affecting lower earners, said evidence that a higher minimum wage was to blame for youth unemployment was not cast-iron but was strong enough for the government to be more cautious about future rises.
“In a world where the youth labour market looks rocky … big increases in the youth minimum wage rate are probably the wrong way to go,” he said.
Politics
China’s Xi urges faster development of new energy system as Middle East war continues

- President Xi Jinping urges safeguards for China’s energy security.
- Says Party Central Committee advances energy security strategy.
- China must stay committed to low-carbon development, he adds.
BEIJING: Chinese President Xi Jinping has called for accelerated planning and construction of a new energy system to safeguard the country’s energy security, weeks into the Iran war that has triggered global energy shocks.
The leader of the world’s second-largest economy also emphasised hydropower development and ecological protection, while urging the safe and orderly expansion of nuclear power, according to state broadcaster CCTV on Monday.
“The Party Central Committee has gained a profound grasp of global energy development trends and made major decisions by advancing the new energy security strategy in depth,” he said, referring to the ruling Communist Party’s centre of authority.
Xi did not directly mention the war in his remarks cited by CCTV.
The United States and Iran have been weighing a Pakistani-brokered plan that could end their five‑week-old conflict, even as Tehran pushed back against pressure to swiftly reopen the Strait of Hormuz.
Role of coal and greener energy
Analysts have pointed out that China is relatively better-positioned to absorb the higher oil prices.
Coal accounts for more than half of its energy mix, while it has ample oil stockpiles and imports via the Strait of Hormuz represent only around 5% of total energy consumption.
“The path we took in being the first to develop wind and solar power has now proven to be forward-looking. At the same time, coal-fired power remains the foundation of our energy system and must continue to play its supporting role,” Xi said.
China operates more than half of the world’s coal-fired power capacity, making it the top carbon emitter, which Western-led climate initiatives have long contended with. The country continues to position coal power as a reliability backbone and flexible backup system, even as it accelerates renewables.
Although he underscored the role of coal in China’s energy mix, the president said the country—the world’s largest consumer of coal—must stay committed to clean, low-carbon development.
“A greener, more diversified and resilient new energy system will provide a strong guarantee for China’s energy security and economic development,” CCTV said.
Last July, China began construction of what will be the world’s largest hydropower dam on the eastern rim of the Tibetan Plateau.
Construction on a solar thermal power plant by China General Nuclear Power Group at an altitude of 4,550 metres in Tibet has also begun on Monday, according to state Xinhua News Agency.
Politics
Pakistani expats in UAE vow support, offer volunteer services in solidarity move

DUBAI: Pakistani expatriates in the United Arab Emirates (UAE) have reaffirmed their support for the host country, offering to volunteer their services if required, in a strong show of unity during ongoing regional tensions.
At a community event held in Dubai under the “One Nation, One Family” campaign, speakers said Pakistanis living in the UAE consider it their home and are committed to standing by the country in challenging times.
“The UAE supported our dreams. Now we are ready to return that support in full force,” a participant said, reflecting the mood of the gathering.

Several attendees described themselves as “sons of the soil” and said they were ready to assist authorities in any capacity. “We are waiting for directions and are prepared to serve wherever needed,” one speaker added.
Prominent Emirati entrepreneur and businessman, Bu Abdullah, attending as a guest of honour, said all residents were part of one national family and called for unity and adherence to rules during the current situation.
Event organiser Mian Munir Hans thanked the UAE leadership for ensuring the country’s security and praised its continued commitment to peace and tolerance.

Overseas Pakistani representative Malik Aslam said that many Pakistanis have come to the UAE, built their lives, and achieved their dreams, adding that the community remains grateful and will continue to stand by the UAE leadership in all circumstances.
Overseas Pakistanis, including long-time resident Qadir Magsi and business leader Mohammad Saleem, expressed emotional attachment to the UAE, saying they were ready to fulfil any responsibility if called upon.
The event was organised by the Pakistan Peoples Party Middle East and attended by members of the Pakistani community, business groups and political representatives, who collectively expressed solidarity with the UAE and appreciation for the opportunities the country has provided.
Politics
Iran, US ‘receive plan’ to end hostilities, immediate ceasefire

- Plan to be agreed on Monday, says source.
- Two-stage deal envisaged, ceasefire then final agreement.
- Final deal in 15–20 days with nuclear curbs, sanctions relief.
Iran and the United States have received a Pakistan-formulated plan to end hostilities that could come into effect soon and reopen the Strait of Hormuz, a source aware of the proposals said on Monday.
A framework to end hostilities has been put together by Pakistan and exchanged with Iran and the US overnight, the source said, outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement.
“All elements need to be agreed today,” the source said, adding the initial understanding would be structured as a memorandum of understanding finalised electronically through Pakistan, the sole communication channel in the talks.
Axios first reported on Sunday that Pakistan, along with other regional mediators, was engaged in intense diplomatic efforts to broker a potential 45-day ceasefire between Iran and the United States that could lead to a permanent end to the war.
The source told Reuters that Chief of Army Staff (COAS) and Chief of Defence Forces (CDF), Field Marshal Asim Munir, has been in contact “all night long” with US Vice President JD Vance, special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi.
Under the proposal, a ceasefire would take effect immediately, reopening the Strait of Hormuz, with 15–20 days to finalise a broader settlement.
The deal, tentatively dubbed the “Islamabad Accord,” would include a regional framework for the strait, with final in-person talks in Islamabad.
Meanwhile, senior Iranian official told Reuters that Tehran had received Pakistan’s proposal for an immediate ceasefire and was reviewing it, adding that Tehran does not accept being pressured to accept deadlines and make a decision.
Iran won’t reopen the Strait of Hormuz in exchange for a “temporary ceasefire”, the official said, adding that Tehran views Washington as lacking the readiness for a permanent ceasefire.
Iranian officials have previously told Reuters that Tehran was seeking a permanent ceasefire with guarantees they will not be attacked again by the US and Israel. They have said Iran has received messages from mediators including Pakistan, Turkiye and Egypt.
The final agreement is expected to include Iranian commitments not to pursue nuclear weapons in exchange for sanctions relief and the release of frozen assets, the source said.
Two Pakistani sources said Iran has yet to commit despite intensified civilian and military outreach.
“Iran has not responded yet,” one source said, adding proposals backed by Pakistan, China and the United States for a temporary ceasefire have drawn no commitment so far.
There was no immediate response from Chinese officials to requests for comment.
The latest diplomatic push comes amid escalating hostilities that have raised concerns over disruption to shipping through the Strait of Hormuz, a critical artery for global oil supplies.
US President Donald Trump has in recent days publicly pressed for a rapid end to the conflict, warning of consequences if a ceasefire is not reached within a short timeframe.
The conflict has heightened volatility in energy markets, with traders closely watching any developments that could affect flows through the strait.
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