workers aged 50+ now make up roughly 31% of UK employment in key growth sectors. Yet each year, about 437,000 leave these roles, resulting in an estimated £31 billion in lost output and £11.5 billion in forgone tax revenue.
Each week, we bring you a sharply curated roundup of the key economic and market developments - and the investment ripples they may cause. In this Weekly Market Brief: 9th–15th August 2025, we unpack everything from productivity pressures and central bank updates to green-energy stimulus. Stay well-informed and ahead of the curve with Compare Wealth Managers.
The £31 Billion Productivity Drain
According to The Financial Times, workers aged 50+ now make up roughly 31% of UK employment in key growth sectors. Yet each year, about 437,000 leave these roles through early retirement, ill health, or other factors, resulting in an estimated £31 billion in lost output and £11.5 billion in forgone tax revenue.
As the UK population ages, retaining and supporting older workers is increasingly vital for economic resilience. This demographic shift has deep implications for growth, fiscal stability, and investment returns.
Investor Insights
- Sector-specific talent gaps: Clean energy and professional services face mounting skill shortages.
- Policy shifts ahead: New measures to keep over-50s in work could influence labour costs and productivity trends.
- Retirement-income planning: Longer working lives may call for more flexible pensions and liability-matching strategies.
- GDP drag risk: Slower productivity growth could weigh on markets; defensive portfolio positioning may help.
BoE QE Losses Still at £115bn
Reuters reports the Bank of England has reduced its projected losses from quantitative easing to £115 billion, down from £120 billion, but the fiscal burden remains heavy. Elevated debt-servicing costs could keep gilt yields higher for longer, constraining fiscal policy and public spending flexibility.
Investor Insights
- Bond market dynamics: Greater gilt supply could suppress prices; careful duration management is essential.
- Public finance impact: Long-term debt costs may drive changes in tax policy and spending priorities.
- Pension fund planning: Higher yields improve funding ratios on paper but can dent existing bond values; inflation remains a key variable.
- Diversification needs: Exposure to non-UK bonds or alternative fixed income can mitigate UK gilt risks.
Great British Energy: £8.3bn Kick-Start for UK Renewables
As reported by Energy Digital, the Great British Energy Act 2025 has launched a state-backed clean energy company with £8.3 billion in public funding to accelerate renewable projects. This aims to strengthen energy security, generate green jobs, and catalyse private investment.
Investor Insights
- Infrastructure & thematic funds: Public support could lift valuations in clean-tech, wind, and grid infrastructure.
- Green bonds: Attractive income opportunities with sustainability benefits.
- Private capital: Rising co-investment deals in solar, offshore wind, and grid upgrades.
- Energy transition hedging: Allocations to GB Energy projects can balance fossil fuel exposure.
Markets Summary (as of 15/08/25)
FTSE 100 Index: 9,178.26, up 1.02 points (+0.01%) (Via: ADVFN)
GBP/USD: 1.1684, up 0.0036 (+0.31%) (Via: WSJ)
Brent Crude Oil: $66.40 per barrel, down $0.44 (-0.66%) (Via: Reuters)
This brief is for informational purposes only and does not constitute financial advice. Always consult a qualified adviser before making investment decisions.
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