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Sports May 26, 2026

From 'Loser' to Champion: How Francesco Farioli Revived Porto

After a dramatic collapse at Ajax left him branded a 'loser', Francesco Farioli orchestrated an imp…
The Rise and Fall of a Rising ManagerAfter Francesco Farioli surrendered a nine-point lead in his final five matches at Ajax, he felt the word 'loser' had been stamped across his forehead. Clubs that had pursued him quietly stepped back and his rise abruptly stalled. This dramatic fall from grace came just months after he had been considered one of European football's brightest managerial talents.Now, after an impressive campaign at Porto, the 37-year-old Italian is again one of Europe's most sought-after coaches. His journey from the depths of despair to the pinnacle of success in Portuguese football serves as a compelling narrative about resilience and the unpredictable nature of football management.The Porto TransformationPorto's title triumph, wrapped up with two games to spare, came 12 months after Ajax's collapse enabled PSV to become Dutch champions. It is a sign of Farioli's status that he was linked with Chelsea before they appointed Xabi Alonso, raising fears among Porto supporters of an early departure. They remember what happened 15 years ago when André Villas-Boas was prised away to Stamford Bridge after winning the league.Farioli, though, insists the club and fans have nothing to worry about. "I feel I need to go again and push again – now the expectations are even higher," he says. "Three weeks ago, from the outside, I had big question marks on my head. Now there is an exclamation mark that needs to be confirmed and proved."A Calculated Risk Pays OffVillas-Boas is Porto's president these days, voted in just over two years ago, and the trust he placed in Farioli has been good for both parties. Porto had gone three seasons without the title before Farioli's arrival."I was really looking for a club with people who had the same motivation I had – a spirit of overturning a failure or something that went wrong – after the very heavy season I had at Ajax," Farioli says. The Italian inherited a Porto squad that had experienced a chaotic season marked by two managerial changes, a third-placed finish and the loss of Champions League football."The president's decision to give me this opportunity was remarkable, especially after a year with two young coaches [Vítor Bruno and Martín Anselmi] already," Farioli says. "Choosing a third one – and someone who had 'loser' stamped on his head – was not a rational move. But André Villas-Boas had faith and deep belief."An Unconventional Path to SuccessFarioli's path has differed greatly from that of most elite managers. At 23 he was studying philosophy at the University of Florence and he started working in top-level football as a goalkeeping coach under Roberto De Zerbi at Benevento and Sassuolo.His first head coach role came six years ago at Fatih Karagumruk in Turkey, when he became the youngest manager in Turkish top-flight history. Since leaving that country he has spent a season each at Nice (finishing fifth), Ajax and Porto.The Defensive MasterclassWith those three teams he recorded the best defensive record in the league, Porto conceding 18 goals in 34 matches last season. Their change in attitude under Farioli was unmistakable. Porto pressed relentlessly, never backed down from duels and stayed united in difficult moments. The commitment was obvious to supporters, who applauded the players' effort in every match."Metrics like total distance, high-speed running and sprint distance have been very reliable indicators for us throughout the season," Farioli says. "In almost all matches we managed to outperform our opponents in these areas, and that gave us important confirmation about the effectiveness of our physical planning and workload management."Emotional Resilience and Team UnityThe squad also united emotionally after the death of Jorge Costa, the football director, at the training ground in the opening days of the season. The club flag that covered his coffin was hung inside the stadium from one of the stands – a constant reminder of what they were fighting for.Farioli held tightly to one sentence Costa uttered in his final days: "We have a team again." As part of his reboot Farioli took new players to the club museum. "Porto needed to reconnect with certain values and rediscover the mystique that, in recent seasons, had partially faded away," he says. "But it was also essential to change the emotional atmosphere around the team: to bring back enthusiasm for the work, serenity inside the environment, and the desire to feel like a true team."Tactical Philosophy and Key PlayersFor Farioli, the goalkeeper is the keystone tactically – creating numerical superiority in the first phase of buildup and attracting pressure to open central spaces. In Diogo Costa, the Portugal keeper who passes with the poise of a midfielder, he found the ideal fit. Costa can pinpoint the free man under heavy pressure. "The goalkeeper has a very particular perspective on football because he sees the game globally," Farioli says.In front of Costa, the Polish duo Jan Bednarek and Jakub Kiwior formed a towering defensive wall. Often they were the only players behind the halfway line as Porto operated with an exceptionally high defensive line. Just ahead of them stood the team's breakout star, Victor Froholdt. The 20-year-old Danish midfielder, signed for €20m (£17.3m) from Copenhagen, was initially regarded as a risky investment but emerged as a key player in Farioli's system.The Road AheadAs Porto celebrates their title triumph, questions arise about Farioli's future. His name has been linked with several top European clubs, and his success at Porto has only increased his market value. The 37-year-old manager, however, remains focused on the present and the challenges that lie ahead."They had the freedom to hit us with a bazooka," Farioli says of the anonymous questionnaires he gives his players as he prepares for next season. This approach of seeking honest feedback and maintaining open communication exemplifies his management style and commitment to continuous improvement.Whatever the future holds, Francesco Farioli has already proven that he can overcome adversity, transform struggling teams, and silence his critics. His journey from being branded a 'loser' to becoming a champion manager serves as an inspiration in the unpredictable world of football management.
#Francesco Farioli #Porto #Ajax
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Sports May 26, 2026

PGA of America President Don Rea Jr Ousted After Ryder Cup Controversy

PGA of America president Don Rea Jr was suspended and removed from office immediately after critici…
The Immediate Removal of Don Rea Jr.Effective immediately, the PGA of America announced that Don Rea Jr is out as president following a wave of backlash over his handling of verbal abuse directed at European players during last year’s Ryder Cup.Board Decision and Term DetailsTuesday, 26 May 2026: The board of directors voted to suspend Rea for the remainder of his two‑year term, which was set to expire in November 2026.Nathan Charnes, the organization’s vice‑president, was named acting president.The suspension ends Rea’s tenure that began in November 2024.Impact on PGA Governance and International Golf RelationsThe episode underscores growing scrutiny of golf’s governing bodies when fan conduct spirals out of control. Rea’s dismissive comments—comparing the abuse to a “youth soccer game”—and his delayed apology have damaged the PGA’s image, strained U.S.–European relations, and raised questions about the organization’s crisis‑management protocols.Looking Ahead: Leadership and Policy ChangesWith Charnes at the helm, the PGA is expected to tighten crowd‑control policies, introduce stricter penalties for abusive spectators, and launch a communications overhaul aimed at restoring trust among players, sponsors, and fans. Observers predict a more proactive stance on fan behavior ahead of the 2027 Ryder Cup.
#PGA of America #Don Rea Jr #Ryder Cup
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Sports May 26, 2026

West Ham Faces £196m Transfer Debt as Nuno Espírito Santo’s Future Hangs in Balance

West Ham United survived relegation but remains burdened by £196 million in unpaid transfer fees an…
West Ham United’s recent Premier League survival is being eclipsed by a looming financial burden, with the club still owing £196 million in transfer instalments and facing uncertainty over manager Nuno Espírito Santo. The Mounting £196m Transfer Debt Threatens West Ham's Survival After a dramatic late goal secured a win that kept the Hammers up, the club is already looking ahead to a summer of restructuring. Manager Nuno Espírito Santo was summoned for a board meeting on Monday, with reports that the owners are split on whether to retain him. At the same time, the squad may lose its standout forward Jarrod Bowen and other high‑earning players as the club seeks to recoup money spent on the £105 million Declan Rice transfer and other signings. Financial Figures: £196m Unpaid Fees and £105m Rice Deal Highlight the Crisis £196 million in unpaid transfer fees at the end of 2025. £105 million spent on Declan Rice, still being paid in annual instalments. West Ham earned 11 points in seven games after the survival win. Potential future outflows include wages for high‑earning players and further instalments on past signings. Implications for West Ham's Squad and Management Amid Relegation Fears The financial strain forces the board to consider a squad overhaul. Cutting wages may require selling key assets such as Jarrod Bowen and offloading players acquired for modest fees who have not delivered. A divided board also risks destabilising the managerial position, which could affect on‑field performance and increase the danger of a relegation battle next season. What Lies Ahead: Potential Managerial Changes and Squad Overhaul Analysts predict that if the club cannot secure additional cash flow, Nuno Espírito Santo is likely to depart, making way for a manager willing to work within tighter budgets. The upcoming transfer window will probably see a focus on free agents, loan deals and the sale of high‑value contracts to balance the books. The club’s ability to navigate these challenges will determine whether West Ham can maintain its Premier League status or face a slide toward the lower divisions.
#West Ham United #Nuno Espírito Santo #Declan Rice
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Business May 26, 2026

Starbucks Korea Faces Sales Plunge After 'Tank Day' Marketing Backlash

Starbucks Korea has experienced a significant sales decline following a controversial 'Tank Day' ma…
The LeadStarbucks Korea has experienced a significant sales decline following a controversial "Tank Day" marketing campaign that referenced a brutal 1980 military crackdown on pro-democracy protesters. The incident has triggered widespread public outrage, government condemnation, and resulted in the dismissal of Starbucks Korea's CEO as Shinsegae Group struggles to contain the damage.The Marketing Misstep That Ignited Public OutrageThe controversy stems from Starbucks Korea's "Tank Day" campaign, launched on the anniversary of the May 18 Gwangju Uprising—a pivotal moment in South Korean history when the military government deployed troops and tanks to suppress pro-democracy demonstrations in 1980. The campaign, which many perceived as trivializing or mocking the historical event that resulted in hundreds of deaths or disappearances, immediately sparked public backlash.Shinsegae Group, whose subsidiary E-Mart operates Starbucks in South Korea, has faced mounting criticism over the insensitive marketing approach. In a news conference on Tuesday, Shinsegae Group chairman Chung Yong-jin made a public apology and urged people not to direct their anger at Starbucks Korea employees and front-line staff."I take it very seriously, the fact that many people felt deep pain and anger because of Starbucks Korea's inappropriate marketing campaign," Chung said. "I will take all responsibility for the incident."Financial Fallout and Corporate ResponseThe marketing controversy has had immediate financial consequences for Starbucks Korea. A Shinsegae official confirmed that sales have fallen sharply since the campaign was launched. "While sales are not our main concern at the moment, we have seen a very significant drop," the official stated.In response to the crisis, Shinsegae took swift action by firing the head of Starbucks Korea last week after apologizing for the campaign. Starbucks Global also issued an apology and announced that an internal investigation had begun. Chung Yong-jin issued his first apology on May 19, acknowledging that the campaign caused "deep pain to the victims and bereaved families of the May 18 Democratization Movement as well as to the public."During the internal review, some employees refused management requests to hand over their smartphones, complicating the investigation. Shinsegae stated they would await the results of a police inquiry and would terminate any employee found to have intended to ridicule the pro-democracy protesters.Political and Cultural RepercussionsThe backlash against Starbucks Korea extends beyond public opinion into the political realm. Government officials, including Interior and Safety Minister Yoon Ho-jung, have condemned the campaign, stating that Starbucks products will no longer be used at government events. Minister Yoon lamented what he described as the chain's "anti-historical behavior."South Korean President Lee Jae Myung went even further, taking to social media platform X to denounce the campaign as displaying "inhumane and disgraceful behaviour by cheap profiteers who deny the values of the South Korean community, basic human rights and democracy." The strong political response has amplified public calls for boycotts of Starbucks across the country.The incident has highlighted the sensitivity around historical events in South Korea, particularly those related to the country's transition to democracy. The May 18 Gwangju Uprising remains a traumatic and significant event in South Korean history, symbolizing the struggle against authoritarian rule.Recovery Path and Future OutlookFor Starbucks Korea, the path to recovery will require more than just executive apologies and personnel changes. The company will need to demonstrate a genuine understanding of South Korean history and cultural sensitivities in its future marketing efforts. This incident serves as a stark reminder of the importance of cultural intelligence in global marketing strategies.The long-term impact on Starbucks' brand reputation in South Korea remains uncertain. While the company has a strong presence in the country, this controversy could lead to lasting consumer distrust if not addressed appropriately. Shinsegae's handling of the aftermath—including their commitment to transparency in the investigation and their expressed willingness to take responsibility—will be crucial in determining whether the brand can recover from this significant setback.As global companies navigate increasingly complex cultural landscapes, the Starbucks Korea case study will likely be referenced as a cautionary tale about the potential consequences of failing to understand local historical contexts and sensitivities.
#Starbucks #Shinsegae Group #South Korea
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Sports May 26, 2026

Supreme Court Rejects NFL's Bid to Move Racism Case to Arbitration

The US Supreme Court has declined to hear an appeal by the NFL to move a racial discrimination laws…
The Supreme Court's Landmark Decision on NFL ArbitrationThe US Supreme Court has turned away a bid by the National Football League to move a Black coach's racial discrimination claims out of federal court and into arbitration proceedings controlled by the NFL. This decision allows former Miami Dolphins head coach Brian Flores to pursue his lawsuit alleging systematic racial discrimination in the league's hiring practices.The Legal Battle Over ArbitrationThe justices declined to hear an appeal by the league and three of its teams (the New York Giants, Denver Broncos and Houston Texans) after a lower court ruled that the NFL cannot force Flores to arbitrate workplace bias claims through a process overseen by NFL Commissioner Roger Goodell. The teams involved in the appeal were the New York Giants, Denver Broncos and Houston Texans.The Arbitration Process and Its RejectionFlores, 45, has accused the NFL of systematic discrimination against Black coaches. The league attempted to have the case moved to arbitration, arguing it should either be dismissed as lacking legal merit or sent to private arbitration. However, a New York-based federal judge in 2023 ruled that the NFL and the three teams must face Flores's claims in federal court.The 2nd US Circuit Court of Appeals in 2025 agreed that some of Flores's belonged in federal court, ruling that a provision in the NFL constitution granting Goodell unilateral authority to arbitrate was "plainly unenforceable" because it would deny Flores arbitration "in any meaningful sense of the word." The court noted that an arbitration agreement that "compels one party to submit its disputes to the substantive and procedural authority of the principal executive officer of one of their adverse parties, is an agreement for arbitration in name only."The Systemic Discrimination AllegationsFlores filed his 2022 lawsuit after being fired as head coach of the Miami Dolphins despite the team having a winning record for two consecutive seasons. He alleged that during his career, he was asked to have "sham interviews" with the Giants and Broncos merely to satisfy a 2003 NFL policy called the Rooney Rule requiring that minorities be interviewed for coaching jobs. The NFL adopted the Rooney Rule in 2003 in light of the historically low number of minorities in NFL head coaching positions.Two more Black coaches, former Arizona Cardinals head coach Steve Wilks and former longtime NFL assistant coach Ray Horton, later joined Flores as plaintiffs in the lawsuit. The lawsuit seeks to force the NFL to make a series of changes, incentivize teams to hire Black coaches and general managers, and require teams to explain hiring and termination decisions in writing.Broader Implications for Professional SportsThe NFL has denied claims of racial discrimination, but this case represents a significant challenge to the league's employment practices. The Supreme Court's decision not to intervene means the case will proceed in federal court, where Flores's allegations of systemic discrimination will be subject to public scrutiny and potentially legal remedies.This decision could set a precedent for other professional sports leagues and how they handle discrimination claims. The rejection of the NFL's arbitration attempt suggests that courts may be increasingly skeptical of arbitration processes where the decision-maker has a direct interest in the outcome, particularly in cases involving powerful organizations and individual employees.What Happens Next for the NFLWith the Supreme Court's decision, the NFL and the three teams named in the suit will now have to defend themselves against Flores's allegations in federal court. The case could reveal internal hiring practices and potentially expose evidence of discrimination within the league. If Flores and the other plaintiffs prevail, the NFL could be required to implement significant changes to its hiring practices, potentially including more diverse candidate pools and greater transparency in decision-making processes.The case also puts renewed focus on the effectiveness of the Rooney Rule, which has been criticized for not significantly increasing the number of minority head coaches in the NFL. The outcome of this lawsuit could lead to either reforms to the existing policy or the development of more robust anti-discrimination measures in professional sports.
#NFL #Brian Flores #Supreme Court
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Tech May 26, 2026

Musk and Altman's AI Rivalry Intensifies as Billion-Dollar IPO Race Heats Up

The intensifying rivalry between Elon Musk and Sam Altman has reached a boiling point as both tech …
The Lead Elon Musk and Sam Altman's AI rivalry has reached unprecedented levels as both tech titans prepare for massive IPOs that could reshape the artificial intelligence landscape. The week's developments highlight a high-stakes battle for dominance in what is arguably the most consequential technology of our time. The Legal and Financial Battle On Monday, Musk lost his lawsuit against Altman and OpenAI, with a federal jury in Oakland finding them not liable for Musk's claims that they unjustly enriched themselves and broke a founding contract. The verdict, delivered after less than two hours of deliberation, provides OpenAI with a clear path to pursue going public later this year at about a $1tn valuation. On Wednesday, Musk countered by revealing SpaceX's plans for its $1.75tn initial public offering. The rocket and satellite operations company will go public on the Nasdaq exchange at a valuation of about $1.75tn under the symbol SPCX, likely on 12 June, seeking up to $80bn in investment. Then on Thursday, the Wall Street Journal reported that OpenAI was hurtling towards an initial public offering, perhaps even as soon as Friday, though the company did not file to go public that day. The Financial Stakes SpaceX's investor prospectus revealed significant financial details, showing the company is plowing billions of dollars into its AI subsidiary, xAI. The company had a capital expenditure last year of more than $20bn against $18.7bn in revenue for 2025 and lost over $4.2bn in the first three months of 2026. The prospectus lists OpenAI along with other major AI firms such as Anthropic as key competitors to SpaceX's business. With all three AI businesses potentially going public this year at valuations of hundreds of billions or more than a trillion dollars, this represents one of the most blockbuster periods for public offerings in market history. Industry Transformation The rivalry between Musk and Altman reflects a broader shift in the tech industry as AI becomes the central focus of innovation and investment. Control over artificial intelligence is increasingly concentrated in the hands of a small group of powerful individuals, raising questions about the future direction of the technology and its impact on society. Meanwhile, Google entered the fray with its unveiling of Gemini Spark, a 24/7 personal AI agent designed to proactively manage tasks and help users navigate their digital life. The product represents Google's ambitious attempt to integrate all its services into a cohesive AI-powered experience that could potentially replace traditional smartphone interactions. Google also announced significant changes to Search, shifting from the traditional list of 10 blue links to a chatbot interface that summarizes information for users rather than requiring them to navigate to sources themselves. The Future Outlook As we move toward a future where AI agents potentially replace smartphones as the primary interface for digital interaction, the rivalry between Musk, Altman, and other tech leaders will likely intensify. The coming IPOs of major AI companies could trigger a wave of investment and innovation that accelerates the development of artificial intelligence capabilities. However, the concentration of power in the hands of a few tech leaders also raises important questions about regulation, ethical development, and equitable access to AI technologies. As these companies go public, they will face increased scrutiny from investors and regulators alike. The race to dominate the AI space is not just about financial success—it's about shaping the future of human interaction with technology and determining who will control the most transformative technology of our time.
#Elon Musk #Sam Altman #OpenAI
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Politics May 26, 2026

Report Warns UK’s Legal Crackdown on Pro‑Palestine and Climate Protesters

A joint report by Queen Mary University’s Centre for Climate Crime and Defend Our Juries says Brita…
The Report’s Findings on Britain’s Shifting Protest LandscapeThe study, titled Britain’s Political Prisoners, maps a “deeply troubling transformation” in how the UK treats civil disobedience. It links the rise in harsh penalties to two flagship statutes – the Police, Crime, Sentencing and Courts Act 2022 and the Public Order Act 2023 – and to an expanding use of civil injunctions, contempt of court proceedings and pre‑trial remand.Key activist groups cited: Extinction Rebellion, Just Stop Oil, Insulate Britain, and Palestine Action.Targeted industries: fossil‑fuel firms, arms manufacturers such as Elbit Systems, and local councils.Legal tools highlighted: “locking‑on” offences, criminalised tunnelling, and broadened stop‑and‑search powers.Numbers Behind the Crackdown: Sentences, Remand and Case StatisticsThe researchers analysed 249 protest‑related cases from 2019 onward, revealing a stark quantitative shift.60% of defendants received final sentences shorter than the time already spent on remand.Typical pre‑trial detention periods ranged from 12 to 18 months, with some cases extending to over two years (e.g., the Brize Norton Five).Sentences for planning offences reached up to 10 years under the 2022 Act.High‑profile convictions included: the “Whole Truth Five” (4‑5 years), four Palestine Action activists (23‑27 months), and multiple Just Stop Oil defendants (up to 30 months).Why the New Laws Threaten Civil Liberties in the UKBeyond raw numbers, the report argues the legal changes undermine fundamental democratic safeguards.Courts increasingly issue gag orders, preventing defendants from mentioning Gaza, climate concerns or corporate motives.Contempt of court has become the most common pathway to imprisonment, bypassing juries and accelerating custodial sentences.Corporate lobbying – notably from the right‑wing think‑tank Policy Exchange (funded by ExxonMobil) and pressure from Elbit Systems – appears to have shaped the 2022 and 2023 statutes.Both Conservative and current Labour governments under Prime Minister Keir Starmer have maintained the expanded powers, suggesting a bipartisan tilt toward protecting commercial interests over protest rights.What Comes Next for Protesters and the Legal SystemActivists, legal scholars and human‑rights groups warn that the trajectory points to further entrenchment of pre‑emptive detention and stricter bail conditions.Potential legislative reviews could focus on repealing or amending the public‑nuisance criminalisation.Strategic litigation may target the use of contempt proceedings and gag orders as breaches of the European Convention on Human Rights.Continued monitoring by organisations such as Defend Our Juries and Amnesty International will be crucial for documenting future abuses.Until reforms are enacted, the report predicts that activists confronting climate‑related projects or Israel‑linked arms factories will face an increasingly hostile legal environment, with the risk of prolonged pre‑trial incarceration becoming the new norm.
#United Kingdom #Police, Crime, Sentencing and Courts Act #Defend Our Juries
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Politics May 26, 2026

Mother of Teen Who Died in TikTok Challenge Urges Government to Ban Social Media for Under-16s

The mother of a teenager who died in a TikTok challenge is urging the UK government to ban social m…
The LeadThe mother of a 14-year-old boy who believes he died in a TikTok challenge has accused the government of being too slow to implement a social media ban for under-16s, urging Downing Street to take immediate action. As a 12-week consultation on the potential ban closes, Ellen Roome is among families meeting with Prime Minister Keir Starmer to demand decisive measures to protect children from what she calls unsafe digital platforms.A Mother's PleaEllen Roome, mother of Jools Sweeney who died at 14 following a TikTok challenge, has been vocal in her demands for a complete social media ban until platforms can be made safe. "Come on, get a grip, let's actually stand up, do something, make a decision," she said on BBC Radio 4's Today program. Roome believes a ban would pressure technology companies to invest in making their systems safer, stating: "They spend millions and billions of pounds on making their system. They could spend some money on actually fixing their system."Government ResponseLabour party chair Anna Turley indicated the government would "seize this moment" but defended the consultation process, explaining: "We need to make sure that legislation and protection keeps pace with technology as it changes, and protects our children going forward." Former health secretary Wes Streeting, who compared social media to tobacco in a recent interview, criticized the tech companies for designing addictive products aimed at young users. "They know that it is harmful, and the business model is orientated towards getting kids while they're young, addicting them with the design features that are designed for addiction," he stated.The Australian PrecedentStreeting pointed to Australia's ban on social media for under-16s as evidence that such measures can prevent harm to children. "If it's working for half of children, that's better than it not working for any children at all," he argued, acknowledging that some children find ways to circumvent the restrictions. The former minister revealed he had urged stronger action while serving in cabinet, saying he was now "liberated from the obligations of collective responsibility" to speak publicly on the issue. He emphasized the growing evidence of social media's impact on children's sleep, concentration, learning, and mental health.Potential Regulatory MeasuresBeyond a complete ban, ministers are considering several regulatory options, including age limits on specific app features such as livestreaming, location sharing, and infinite scrolling. The government is also examining potential restrictions on personalized algorithms that create tailored content feeds for users, along with mandatory screen curfews. As the consultation period concludes, families affected by social media-related tragedies hope their personal stories will prompt swift legislative action to prevent further harm to children.
#TikTok #social media ban #under-16s
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Economy May 26, 2026

Next Boss Warns of 'Dramatic Fall' in UK Entry-Level Jobs as Youth Unemployment Soars

Next's CEO Lord Wolfson has sounded the alarm over a dramatic decline in UK entry-level jobs, with …
The Crisis in Youth EmploymentThe boss of Next, Lord Wolfson, has issued a stark warning about a "dramatic fall" in entry-level jobs across the UK, highlighting how this trend is driving up youth unemployment. The clothing and homeware retailer, where Wolfson has been chief executive since 2001, typically received 10 applications for every job in its shops in 2024, but that number has now surged to 19."That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment," Wolfson told the BBC. His comments come as a government-commissioned report is expected to find that Labour has failed to tackle the soaring number of people not in education, employment or training (Neet), with almost a million young people in this category.Changing Retail Landscape and Employment PracticesThe retail industry is undergoing significant transformation, with Next increasingly adopting automation and other technologies such as self-scanning lockers for customer returns, reducing the need for staff on tills. This technological shift is part of a broader trend where entry-level roles are most vulnerable to the advent of artificial intelligence.Wolfson specifically pointed to the upcoming ban on zero-hours contracts, included in the government's Employment Rights Act, as a factor that will make hiring more difficult. "While I am in favour of eliminating zero-hours contracts in most sectors, the new rules are tricky for retail, because the risk is you then have to contract for those hours forever," he explained.More than a million people in the UK are currently working on a zero-hours contract basis, spanning hospitality, warehouses, and even the NHS. The new legislation will require employers to offer guaranteed hours to casual workers, a change Wolfson suggests will make it "much harder" for Next to offer more flexible hours to its staff.Economic Pressures on Businesses and Young WorkersWolfson, who received a record pay package of more than £7m last year and could be paid up to £9.27m this year, called on the government to reverse the rise in national insurance contributions (NICs) employers have to pay, alongside minimum wage increases. These cost pressures, he argued, have led Next to reduce staffing levels in individual stores while its online business continues to thrive."Traditionally, young people often get their first week experience at a shop stacking shelves or serving drink and food in a restaurant, cafe or pub," Wolfson noted. "Because of the cost increases, we have fewer staff in individual shops."A Treasury spokesperson countered: "Cutting wages for the lowest paid during a time of global uncertainty is not the answer. Increasing the national minimum wage boosts pay for over 200,000 young workers, and employer NICs are lower when hiring under‑21s."Industry Transformation and Labor Market ChallengesThe retail sector's evolution reflects broader changes in the UK labor market. Alice Martin, head of research at the Work Foundation at Lancaster University, emphasized that "young people are entering one of the toughest labour markets in years, facing intense competition for a shrinking number of entry-level jobs."Retail and other sectors are changing rapidly, with more online sales and fewer staff needed on the shop floor. This transformation has contributed to a sharp fall in vacancies, leaving many young people facing repeated rejection as they try to enter the workforce."A difficult labour market is no excuse for undermining pay or job security," Martin added. "The ban on exploitative zero-hour contracts is long overdue. One in five workers in the UK is in severely insecure work, without predictable pay or basic protections."Future Outlook for Youth EmploymentWolfson suggested that ultimately, the best way to improve the jobs market is through economic growth. "Youth unemployment is really a symptom of wider problems with employment in the economy, and of course, if you've got fewer jobs, the people who suffer most are the people with the least experience and that is the youngest," he explained.The government's upcoming "system reset" to address the Neet crisis will likely need to address multiple factors simultaneously, including the changing nature of work, technological displacement of entry-level positions, and the need for better pathways for young people into sustainable employment.As Next continues to invest in its online operations while reducing physical store staffing, the company's experience may serve as a microcosm of broader economic shifts that will require innovative solutions to ensure young people can successfully transition into the workforce.
#Next #Lord Wolfson #UK unemployment
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