Every hour, every new bulletin tells us the stock exchange index, but why?

28th April 2025

Who cares what shares are worth?

What economic news do we need on the hour, every hour, on things that matter in life?

Here are a few answers to Richard Murphy's questions in the video and they really do matter.

Who owns shares in the UK
The key difference between UK and overseas share ownership lies in who holds the shares and how that impacts the market.

UK Share Ownership: UK-resident individuals and institutions (such as pension funds, insurance companies, and banks) hold shares in UK-listed companies. However, individual ownership has declined over time, with UK individuals holding only 10.8% of UK quoted shares as of 2022. Institutional investors, including pension funds, have also seen a reduction in their shareholdings.

Overseas Share Ownership: Foreign investors now dominate UK share ownership, holding 57.7% of UK quoted shares. This trend has been increasing over the years, with overseas investors taking advantage of opportunities in the UK market. Foreign institutional investors often have a long-term approach, focusing on large-cap stocks and market stability.

The shift towards overseas ownership has implications for the UK economy, including greater exposure to global market trends and potential volatility due to foreign investment decisions.

Unemployment Rate in UK
As of the latest data from the Office for National Statistics, the UK unemployment rate stands at 4.4% for the three months leading up to February 2025. This percentage translates to approximately 1.57 million people who are unemployed.

The job market has seen some shifts, with payrolled employees decreasing by 78,000 in March 2025. Meanwhile, wage growth remains strong, with average weekly pay increasing by 5.9% over the same period.

Vacancies Declining: The number of job vacancies has been falling for 33 consecutive quarters, now sitting at 781,000, which is below pre-pandemic levels.

Economic Inactivity: The economic inactivity rate has declined to 21.4%, suggesting more people are entering the workforce.

The UK unemployment rate has fluctuated over the years, reflecting economic cycles, policy changes, and global events. Here's how the current 4.4% unemployment rate compares to historical trends:

Recent Years: The unemployment rate was 4.06% in 2023, slightly lower than today. It had declined from 4.83% in 2021, which was impacted by the COVID-19 pandemic.

2000s & 2010s: The rate was relatively stable, averaging between 4% and 5%, except during the 2008 financial crisis, when it peaked at 8.1% in 2011.

1980s & 1990s: Unemployment was much higher, reaching over 10% in the early 1980s due to economic downturns and industrial decline.

1950s & 1960s: This period saw low unemployment, often below 2%, as the UK experienced post-war economic growth.

The current rate is moderate compared to historical highs, but ongoing economic challenges could influence future trends.

The UK's 4.4% unemployment rate is relatively moderate compared to other countries. Here's how it stacks up globally:

Lower than France (7.3%) and Spain (10.7%)—some European nations have higher unemployment due to economic challenges.

Higher than Germany (3.4%) and Japan (2.5%)—these countries tend to have strong labor markets with lower unemployment.

Similar to the G7 average (4.3%)—the UK is in line with other major economies.

Youth unemployment is a concern—the UK's youth unemployment rate is 14.7%, which is lower than Spain (25.4%) but still significant.

Earnings in UK
The average weekly earnings in the UK were £716 for total earnings and £670 for regular earnings (excluding bonuses) as of February 2025. This translates to an annual salary of approximately £37,200.

Wages have been growing at an annual rate of 5.9%, outpacing inflation, which is currently at 2.6%

The median household disposable income in the UK was £34,500 in the financial year ending 2023. This represents a 2.5% decrease from the previous year.

Household income varies significantly based on factors like location, employment status, and household composition. For example:

The poorest fifth of households had a median disposable income of £16,400, partly supported by government cost-of-living measures.

The richest fifth had a median disposable income of £68,400, reflecting a 4.9% decrease from pre-pandemic levels.

The average household income in Scotland varies depending on factors like employment, location, and household composition. According to the latest estimates, the median gross annual household income in Scotland is approximately £33,332.

This figure is slightly higher than the UK-wide median household income, reflecting Scotland's relatively strong earnings compared to other regions. However, income distribution varies significantly across different areas and demographics.

Precise household income data for Wick and Thurso can be tricky, as figures are often reported at broader regional levels. However, based on estimates for the Highland region, household incomes in these towns tend to be below the Scottish average of £33,332.

Average by Deciles
breakdown of average UK wages by decile for full-time employees in 2024:

Bottom 10%: £22,763 per year

20th percentile: £26,500 per year

Median (50th percentile): £37,430 per year

80th percentile: £52,800 per year

Top 10%: £72,150 per year

Wages have been growing at 5.9% annually, outpacing inflation. However, disparities remain, with the top earners making over three times more than those in the bottom decile.

Change in income over time
the distribution of wages in the UK has changed significantly over time. Here are some key trends:

Lower-income earners have seen slower wage growth compared to higher earners. Since 1999, the bottom 10% of earners have experienced 47% total real wage growth, while the top 10% have seen 100% growth.

Middle-income earners have had modest increases, with the median wage growing by 64% between 1975 and 1999, but only 17% between 1999 and 2023.

Wage inequality has widened, with higher earners benefiting more from economic growth and policy changes.

These shifts reflect broader economic trends, including changes in employment patterns, inflation, and government policies.


Rents
The average rent in Scotland varies by location and property size. As of March 2025, the average monthly rent in Scotland is £1,001, reflecting a 5.7% annual increase.

For specific property sizes:

1-bedroom: £648 per month

2-bedroom: £841 per month

3-bedroom: £1,026 per month

4-bedroom: £1,656 per month

Rental prices tend to be higher in cities like Edinburgh and Glasgow, while rural areas and smaller towns generally have lower rents.

Price of Groceries in Scotland Varies by location
The cost of a typical basket of groceries in Scotland varies depending on location and store choice. However, here are some general price estimates for common items:

Milk (1L): £0.79

Bread (loaf): £1.09

Eggs (6-pack): £1.75

Cheddar cheese (220g): £1.49

Chicken breast (per kg): £6.50

Apples (per kg): £2.00

Potatoes (per kg): £1.50

Rice (1kg): £1.20

Pasta (500g): £0.20

Frozen pizza (330g): £1.19

Children in Poverty in Scotland
In Scotland, 1 in 4 children (24%) were living in poverty between 2020 and 2023. While overall child poverty has declined, a growing number of children are experiencing very deep poverty, with around 80,000 children affected3.

This means that many families struggle to afford basic necessities, despite government efforts to reduce poverty levels. The Scottish Government has set ambitious targets to cut child poverty to 10% by 2030, but experts warn that meeting this goal will be extremely challenging without further action.

How many people in Scotland Waiting For NHS Treatment
As of March 2025, the number of people waiting for NHS treatment in Scotland has reached a record high of 840,300. This includes:

534,178 waiting for outpatient treatment, which has increased by 10% compared to last year.

156,108 waiting for inpatient treatment, which is more than double the pre-pandemic levels.

150,014 waiting for key diagnostic tests, such as colonoscopies, CT scans, and MRI scans.

Government Cuts Will Have an impact
The Scottish Government has announced £500 million in cuts to public services as part of efforts to address a budget shortfall. These cuts include:

£188 million in savings across all government portfolios.

£125 million through spending controls and repurposing funds from other projects.

£160 million saved by ending the universal winter fuel payment.

Up to £460 million from ScotWind leasing revenue to help close the funding gap.

Additionally, experts warn that Scotland could face £900 million in further cuts due to reductions in UK government funding. The Spring Statement confirmed welfare cuts and departmental budget reductions, which could impact Scottish services

Additionally, more than 8,000 people have been waiting over two years, and 85,000 have been waiting over a year for either an outpatient appointment or to start treatment.