There is a prevailing sense that the immediate “here and now” priorities continue to be at the forefront of the agenda for charity trustees and leaders. Although there are signs of a more stable economic environment, with the backdrop of the upcoming general election it is understandable that the focus has shifted more to the near term. There is nevertheless an imperative for charities to look forward and continue to scan the horizon for future risks and opportunities.
The Office for National Statistics (ONS) estimated that the UK economy showed no growth in April 2024, following growth of 0.4% the previous month. There is an estimated growth of 0.7% over the three months to April 2024 compared to the three months to January 2024.
The Consumer Price Index (CPI) rose by 2% in the 12 months to May 2024, down from 2.3% in the 12 months to April 2023. This is a significant step as headline inflation reaches the Bank of England’s target.
The annual growth in regular pay from the ONS was 6.0% in the three months to April 2024, the same as for the previous three-month period. While earnings growth remains relatively strong, the ONS comments that there are continued signs that the labour market may be cooling.
Artificial intelligence
The Charity Commission for England and Wales published a blog on Charities and Artificial Intelligence in April 2024, which starts the journey to explore how charities can benefit from AI as well as noting some of the associated risks and drawbacks. PwC UK’s 2024 AI Jobs Barometer reinforced that this technology is transforming what workers and organisations can achieve. The number of job postings in the UK demanding AI-related skills has increased significantly over the last decade.
This is not about how AI can replace people (which is fundamentally backward-looking) but about how there can be new roles and ways of working. Responsible use of AI in partnership with people is likely to be the way forward, and charities should feel confident in embracing this.
Alongside AI, the global economy is also going to be shaped by the green transition over the coming decades. The International Labour Organisation estimates that a net gain of 18 million jobs could be created by 2030, with young people particularly passionate about green jobs. PwC’s Youth Employment Index 2024 shows that the UK continues to underperform relative to its peers in the proportion of young people that are not in education, employment or training. The green transition presents a significant opportunity to address youth unemployment. There is no doubt a role for different charities to play in supporting this.
Daniel Chan is a partner at PwC
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