Shortsightedness is on the rise in children. There’s more we can do than limit screen time

Asada Nami/Shutterstock Flora Hui, The University of Melbourne

Myopia in children is on the rise. The condition – also known as shortsightedness – already affects up to 35% of children across the world, according to a recent review of global data. The researchers predict this number will increase to 40%, exceeding 740 million children living with myopia by 2050.

So why does this matter? Many people may be unaware that treating myopia (through interventions such as glasses) is about more than just comfort or blurry vision. If left unchecked, myopia can rapidly progress, increasing the risk of serious and irreversible eye conditions. Diagnosing and treating myopia is therefore crucial for your child’s lifetime eye health.

Here is how myopia develops, the role screen time plays – and what you can do if think your child might be shortsighted.

What is myopia?

Myopia is commonly known as nearsightedness or shortsightedness. It is a type of refractive error, meaning a vision problem that stops you seeing clearly – in this case, seeing objects that are far away.

A person usually has myopia because their eyeball is longer than average. This can happen if eyes grow too quickly or longer than normal.

A longer eyeball means when light enters the eye, it’s not focused properly on the retina (the light-sensing tissue lining the back of the eye). As a result, the image they see is blurry. Controlling eye growth is the most important factor for achieving normal vision.

Myopia is a common vision problem. Alexander_P/Shutterstock

Myopia is on the rise in children

The study published earlier this year looked at how the rate of myopia has changed over the last 30 years. It reviewed 276 studies, which included 5.4 million people between the ages of 5–19 years, from 50 countries, across six continents.

Based on this data, the researchers concluded up to one in three children are already living with shortsightedness – and this will only increase. They predict a particular rise for adolescents: myopia is expected to affect more than 50% of those aged 13-19 by 2050.

Their results are similar to a previous Australian study from 2015. It predicted 36% of children in Australia and New Zealand would have myopia by 2020, and more than half by 2050.

The new review is the most comprehensive of its kind, giving us the closest look at how childhood myopia is progressing across the globe. It suggests rates of myopia are increasing worldwide – and this includes “high myopia”, or severe shortsightedness.

What causes myopia?

Myopia develops partly due to genetics. Parents who have myopia – and especially high myopia – are more likely to have kids who develop myopia as well.

But environmental factors can also play a role.

One culprit is the amount of time we spend looking at screens. As screens have shrunk, we tend to hold them closer. This kind of prolonged focusing at short range has long been associated with developing myopia.

Reducing screen time may help reduce eye strain and slow myopia’s development. However for many of us – including children – this can be difficult, given how deeply screens are embedded in our day-to-day lives.

Green time over screen time

Higher rates of myopia may also be linked to kids spending less time outside, rather than screens themselves. Studies have shown boosting time outdoors by one to two hours per day may reduce the onset of myopia over a two to three year period.

We are still unsure how this works. It may be that the greater intensity of sunlight – compared to indoor light – promotes the release of dopamine. This crucial molecule can slow eye growth and help prevent myopia developing.

However current research suggests once you have myopia, time outdoors may only have a small effect on how it worsens.

Sunlight may play a role in slowing myopia progression. Allan Mas/Pexels

What can we do about it?

Research is rapidly developing in myopia control. In addition to glasses, optometrists have a range of tools to slow eye growth and with it, the progression of myopia. The most effective methods are:

• orthokeratology (“ortho-K”) uses hard contact lenses temporarily reshape the eye to improve vision. They are convenient as they are only worn while sleeping. However parents need to make sure lenses are cleaned and stored properly to reduce the chance of eye infections

• atropine eyedrops have been shown to successfully slow myopia progression. Eyedrops can be simple to administer, have minimal side effects and don’t carry the risk of infection associated with contact lenses.

You can monitor your child’s eye health and vision with regular eye tests. 4 PM production/Shutterstock

What are the risks with myopia?

Myopia is easily corrected by wearing glasses or contact lenses. But if you have “high myopia” (meaning you are severely shortsighted) you have a higher risk of developing other eye conditions across your lifetime, and these could permanently damage your vision.

These conditions include:

• retinal detachment, where the retina tears and peels away from the back of the eye

• glaucoma, where nerve cells in the retina and optic nerve are progressively damaged and lost

• myopic maculopathy, where the longer eyeball means the macula (part of the retina) is stretched and thinned, and can lead to tissue degeneration, breaks and bleeds.

What can parents do?

It’s important to diagnose and treat myopia early – especially high myopia – to stop it progressing and lower the risk of permanent damage.

Uncorrected myopia can also affect a child’s ability to learn, simply because they can’t see clearly. Signs your child might need to be tested can include squinting to see into the distance, or moving things closer such as a screen or book to see.

Regular eye tests with the optometrist are the best way to understand your child’s eye health and eyesight. Each child is different – an optometrist can help you work out tailored methods to track and manage myopia, if it is diagnosed.

Flora Hui, Honorary Fellow, Department of Optometry and Vision Sciences, Melbourne School of Health Sciences, The University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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How air pollution is contributing to cancers in India

New Delhi, (IANS): Increased exposure to carcinogens in the air is increasing the incidence of cancers of the lungs, bladder, breast, prostate, and blood, said health experts on National Cancer Awareness Day on Thursday.

National Cancer Awareness Day is observed on November 7 every year in India to raise awareness about the growing cancer burden in the country and inspire action towards prevention, early detection, and treatment.

India is home to over 1.4 billion people. Lifestyle changes, tobacco use, poor dietary habits, and inadequate physical activity are leading to a rapid surge in cancer cases.

About 800,000 new cancer cases are expected each year, with tobacco-related cancers accounting for as much as 35-50 per cent of all cancers in men and 17 per cent in women, According to estimates from the Health Ministry.

“Cancer rates are rising in India and have seen an upward trend in annual incidence rate. Currently, India records more than 14 lakh new cancer patients every year, and close to 9 lakh people die of it annually,” Dr. Abhishek Shankar, Assistant Professor, Department of Radiation Oncology, Dr BR Ambedkar Institute Rotary Cancer Hospital at AIIMS, Delhi, told IANS.

He attributed this rise to an increase in the "use of tobacco, alcohol, infections like HPV, Hepatitis virus and Helicobacter pylori, lifestyle changes, environmental factors, poor diets, and sedentary lifestyles".

While lifestyle factors play a major role, environmental changes -- particularly rising air pollution -- are also significant.

“India’s high levels of air pollution, especially PM2.5 exposure, are linked to rising lung cancer rates, including cases in non-smokers. Water and soil contamination from industrial pollutants increase risks for various cancers, impacting communities in industrial areas,” Shankar said.

The air quality in Delhi-NCR remained alarmingly poor on Thursday. As per the Central Pollution Control Board (CPCB), the average Air Quality Index (AQI) in the city was recorded at 362.

There is also substantial evidence from studies of humans and experimental animals as well as mechanistic evidence to support a causal link between outdoor (ambient) air pollution, especially PM 2.5 in outdoor air, with lung cancer and breast cancer incidence and mortality.

“It has a risk for other cancer types, such as bladder cancer, prostate cancer, leukaemia (blood cancer) but in limited numbers. Outdoor air pollution may also be associated with poorer cancer survival, although further research is needed,” Shankar said.

The World Health Organization (WHO) has classified outdoor air pollution as a Group 1 carcinogen, meaning there is sufficient evidence to conclude that it causes cancer in humans.

Air pollution in India is primarily caused by emissions from vehicles, industrial activities, and burning of biomass.

Dr Sajjan Rajpurohit, Senior Director - Medical Oncology, Max Super Speciality Hospital, told IANS that these pollutants contain carcinogenic substances such as benzene, formaldehyde, and polycyclic aromatic hydrocarbons (PAHs). Prolonged exposure to these substances can lead to cellular mutations and the development of cancer.

“Particulate Matter (PM2.5) is also one of the most harmful components of air pollution. The tiny particles can penetrate deep into the lungs and enter the bloodstream,” Rajpurohit said.

The health expert noted that children, the elderly, and individuals with pre-existing health conditions are particularly vulnerable to the effects of air pollution. Their increased susceptibility can lead to higher cancer rates in these groups, exacerbating the public health crisis.

Shankar called for a healthy lifestyle, including a balanced diet, regular exercise, and avoiding tobacco and alcohol along with reducing PM-2.5 exposure.

Dr. Sachin Trivedi, Director- Medical Oncology, HCG Cancer Center, also stressed the need for early detection for better treatment outcomes.He called for “regular screenings for breast, lung, colorectal, and oral cancers to help effectively manage cancer”. How air pollution is contributing to cancers in India | MorungExpress | morungexpress.com

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Global carbon emissions inch upwards in 2024 despite progress on EVs, renewables and deforestation

Susan Santa Maria, Shutterstock Pep Canadell, CSIRO; Corinne Le Quéré, University of East Anglia; Glen Peters, Center for International Climate and Environment Research - Oslo; Judith Hauck, Universität Bremen; Julia Pongratz, Ludwig Maximilian University of Munich; Pierre Friedlingstein, University of Exeter, and Robbie Andrew, Center for International Climate and Environment Research - Oslo

Carbon dioxide (CO₂) emissions from fossil fuels continue to increase, year on year. This sobering reality will be presented to world leaders today at the international climate conference COP29 in Baku, Azerbaijan.

Our latest annual stocktake shows the world is on track to reach a new record: 37.4 billion tonnes of CO₂ emitted from fossil fuels in 2024. This is an increase of 0.8% from the previous year.

Adopting renewable energy and electric vehicles is helping reduce emissions in 22 countries. But it’s not enough to compensate for ongoing global growth in fossil fuels.

There were also signs in 2023 suggesting natural systems may struggle to capture and store as much CO₂ in the future as they have in the past. While humanity is tackling deforestation and the growth in fossil CO₂ emissions is slowing, the need to reach an immediate peak and decline in global emissions has never been so acute.

The Global Carbon Project

The Global Carbon Budget is an annual planetary account of carbon sources and sinks, which soak up carbon dioxide and remove it from the atmosphere.

We include anthropogenic sources from human activities such as burning fossil fuels or making cement as well as natural sources such as bushfires.

When it comes to CO₂ sinks, we consider all the ways carbon may be taken out of the atmosphere. This includes plants using CO₂ to grow and CO₂ being absorbed by the ocean. Some of this happens naturally and some is being actively encouraged by human activity.

Putting all the available data on sources and sinks together each year is a huge international effort involving 86 research organisations, including Australia’s CSIRO. We also use computer models and statistical approaches to fill out the remaining months to the end of the year.

Fossil fuel emissions up

This year’s growth in carbon emissions from fossil fuels is mainly from fossil gas and oil, rather than coal.

Fossil gas carbon emissions grew by 2.4%, signalling a return to the strong long-term growth rates observed before the COVID pandemic. Gas emissions grew in most large countries, but declined across the European Union.

Oil carbon emissions grew by 0.9% overall, pushed up by a rise in emissions from international aviation and from India.

The rebound in international air travel pushed aviation carbon emissions up 13.5% in 2024, although it’s still 3.5% below the pre-COVID 2019 level.

Meanwhile, oil emissions from the United States and China are declining. It’s possible oil emissions have peaked in China, driven by growth in electric vehicles.

Coal carbon emissions went up by 0.2%, with strong growth in India, small growth in China, a moderate decline in the US, and a large decline in the European Union. Coal use in the US is now at its lowest level in 120 years.

The United Kingdom closed its last coal power plant in 2024, 142 years after the first one was opened. With strong growth in wind energy replacing coal, the UK CO₂ emissions have almost been cut in half since 1990.

Changing land use

Carbon emissions also come from land clearing and degradation. But some of that CO₂ can be taken up again by planting trees. So we need to examine both sources and sinks on land.

Global net CO₂ emissions from land use change averaged 4.1 billion tonnes a year over the past decade (2014–23). This year is likely to be slightly higher than average with 4.2 billion tonnes, due to drought and fires in the Amazon. That amount represents about 10% of all emissions from human activities, the rest owing to fossil fuels.

Importantly, total carbon emissions – the sum of fossil fuel emissions and land-use change emissions – have largely plateaued over the past decade, but are still projected to reach a record of just over 41 billion tonnes in 2024.

The plateau in 2014–23 follows a decade of significant growth in total emissions of 2% per year on average between 2004 and 2013. This shows humanity is tackling deforestation and the growth of fossil CO₂ emissions is slowing. However, this is not enough to put global emissions on a downward trajectory.

Annual CO₂ emissions continue to increase, reaching a record high in 2024. The shaded area around each line shows the uncertainty in the estimates. Global Carbon Project, CC BY

More countries are cutting emissions – but many more to go

Fossil CO₂ emissions decreased in 22 countries as their economies grew. These countries are mainly from the European Union, along with the United States. Together they represent 23% of global fossil CO₂ emissions over the past decade (2014–23).

This number is up from 18 countries during the previous decade (2004–13). New countries in this list include Norway, New Zealand and South Korea.

In Norway, emissions from road transport declined as the share of electric vehicles in the passenger car fleet grew – the highest in the world at over 25% – and biofuels replaced fossil petrol and diesel. Even greater reductions in emissions have come from Norway’s oil and gas sector, where gas turbines on offshore platforms are being upgraded to electric.

In New Zealand, emissions from the power sector are declining. Traditionally the country has had a high share of hydropower, supplemented with coal and natural gas. But now wind and particularly geothermal energy is driving fossil generation down.

We are projecting further emissions growth of 0.2% in China, albeit small and with some uncertainty (including the possibility of no growth or even slight decline). China added more solar panels in 2023 than the US did in its entire history.

Individual country emissions vary widely, but there are some signs of progress towards decarbonisation. Global Carbon Budget 2024/Global Carbon Project, CC BY-ND

Nature shows troubling signs

In the 1960s, our activities emitted an average of 16 billion tonnes of CO₂ per year globally. About half of these emissions (8 billion tonnes) were naturally removed from the atmosphere by forests and oceans.

Over the past decade, emissions from human activities reached about 40 billion tonnes of CO₂ per year. Again, about half of these emissions (20 billion tonnes) were removed.

In the absence of these natural sinks, current warming would already be well above 2°C. But there’s a limit to how much nature can help.

In 2023, the carbon uptake on land dropped 28% from the decadal average. Global record temperatures, drought in the Amazon and unprecedented wildfires in the forests of Canada were to blame, along with an El Niño event.

As climate change continues, with rising ocean temperatures and more climate extremes on land, we expect the CO₂ sinks to become less efficient. But for now, we expect last year’s land sink decline will recover to a large degree as the El Niño event has subsided.

About half of the CO₂ emissions were removed from the atmosphere by forests and oceans. When we tally up all of the sources compared to the sinks, the budget should balance. We find a slight imbalance of 1.6Gt/year due to limitations of the data. Global Carbon Budget 2024/Global Carbon Project, CC BY

Looking ahead

Our latest carbon budget shows global fossil fuel emissions continue to increase, further delaying the peak in emissions. Global CO₂ emissions continue to track in the middle of the range of scenarios developed by the Intergovenmental Panel on Climate Change (IPCC). We have yet to bend the emissions curve into the 1.5–2°C warming territory of the Paris Agreement.

This comes at a time when it’s clear we need to be reducing emissions, to avoid worsening climate change.

We also identified some positive signs, such as the rapid adoption of renewable energy and electric cars as they become cheaper and more accessible, supporting the march toward a net-zero emissions pathway. But turning these trends into global decarbonisation requires a far greater level of ambition and action.

Pep Canadell, Chief Research Scientist, CSIRO Environment; Executive Director, Global Carbon Project, CSIRO; Corinne Le Quéré, Royal Society Research Professor of Climate Change Science, University of East Anglia; Glen Peters, Senior Researcher, Center for International Climate and Environment Research - Oslo; Judith Hauck, Helmholtz Young Investigator group leader and deputy head, Marine Biogeosciences section at the Alfred Wegener Institute, Universität Bremen; Julia Pongratz, Professor of Physical Geography and Land Use Systems, Department of Geography, Ludwig Maximilian University of Munich; Pierre Friedlingstein, Chair, Mathematical Modelling of Climate, University of Exeter, and Robbie Andrew, Senior Researcher, Center for International Climate and Environment Research - Oslo

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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IANS Analysis: Why no one trusts Chinese?

New Delhi, (IANS): Recently, Microsoft has reportedly banned its employees in China from using Android devices for work, requiring them to switch to Apple devices in September.

The move aims to mitigate cyberattacks and prevent data leaks of corporate resources. The unavailability of Google Play in China, leading to reliance on operating platforms from Chinese companies like Huawei and Xiaomi, is a key factor.

This decision follows Microsoft's earlier offer to around 800 local employees in China, working in artificial intelligence and cloud business, to relocate to other countries. This relocation is in line with the US administration's efforts to restrict Beijing’s access to advanced sensitive technologies due to cybersecurity concerns.

While Microsoft describes this as a “regular part of its global operations,” their February report highlights state-sponsored cyberattack concerns, including hackers from China using Microsoft’s AI tools for intelligence gathering and influencing narratives.

The precautionary measures taken by Microsoft are underscored by criticism from the U.S. Department of Homeland Security’s Cyber Safety Review Board, which cited “a cascade of errors” in Microsoft's failure to prevent security breaches by the Chinese state-backed hacking group Storm-0558. This group targeted email accounts of approximately 22 organisations, including US government officials, and accessed about 60,000 emails from the US State Department.

Cyber espionage is undeniably the most significant national security threat facing the international community today. Recently, China's involvement in cyber espionage has been exposed, despite its covert activities since 2019.

In March, the US and the UK filed charges against Beijing and imposed sanctions, accusing it of using both artificial intelligence and Chinese nationals for malicious cyber hacking operations. These activities compromised the private data of millions worldwide, including businesspeople, lawyers, journalists, academics, politicians, bureaucrats, and critics of the Chinese government.

Similarly, New Zealand and Dutch intelligence agencies have accused China of state-backed espionage campaigns targeting the Wellington Parliament and Dutch military industries.

Beijing’s cyber hacking activities have also extended to neighbouring countries in Asia. This was evidenced in the February document leak from i-Soon, a Shanghai-based cybersecurity company, which revealed the Chinese government’s collaboration with i-Soon’s private hackers for intelligence gathering from foreign governments and organisations.

China's state-supported intelligence operations targeting other nations through cyber espionage are primarily aimed at intellectual property theft (IPT), particularly from Western countries. Due to the lesser emphasis on innovation, Chinese firms, especially those with political connections, have little incentive to pursue innovative paths. This policy effectively promotes IPT theft.

To surpass Western companies in global market competition, Chinese policies permit the acquisition of foreign technology know-how through both legitimate and illegitimate means, with the latter involving cyber espionage.

In 2022, Chinese-affiliated Advanced Persistent Threat (APT) 41 was suspected of conducting cyber operations that resulted in millions of dollars worth of IPT theft from approximately 30 multinational companies across the energy, manufacturing, and pharmaceutical sectors.

Additionally, intelligence gathering has heavily targeted security sectors that possess knowledge of modern warfare's technical capabilities. Emerging Chinese-affiliated APT groups, such as APT 40, have expanded their efforts to gather information for intellectual theft from both government institutions and private companies.

Telecommunication companies like Huawei and ZTE have been controversial due to Beijing's potential use of 5G infrastructure for cyber espionage and IPR theft, posing a significant national security threat.

In October last year, the Five Eyes; intelligence chiefs from the US, UK, Canada, Australia, and New Zealand accused Beijing of intellectual property theft through artificial intelligence in its hacking operations, which was seen as an "unprecedented threat" posed by China globally.

China's espionage activities extend beyond digital platforms to physical infiltration in target nations. Utilising its diasporic population as part of human intelligence exemplifies this approach.

A 2022 report revealed Beijing's long-term strategy of recruiting prominent scientists of Chinese descent who formerly worked at the US Department of Energy's Los Alamos National Laboratory in New Mexico.

At least 162 such scientists with prior experience at this lab have reportedly been recruited to serve the Chinese government. This represents a broader, time-intensive, unconventional tactic of intelligence gathering, where Chinese researchers and academics are incentivised to advance their expertise abroad and subsequently share their knowledge with Beijing.

Notably, China's Counter-Terrorism Law (2015) and National Intelligence Law (2017) mandate Chinese nationals, institutions, and organisations to support and promote state intelligence activities by acting as informants.

Additionally, the United Front's political role in managing the diaspora abroad aims to extend Beijing's global influence and maintain a favourable narrative about China, highlighting another facet of its influence operations.

China's venture capital (VC) investments in foreign nations have also come under scrutiny for their alleged involvement in human rights abuses and surveillance activities. The policies requiring organisational compliance and intelligence cooperation with the government extend to Chinese entities operating overseas as well.

Earlier this year, a US congressional panel accused five American VC firms of investing over $3 billion in Chinese companies with suspected links to the Chinese government and military. The collaboration between Chinese companies and state-owned enterprises, particularly those engaged in developing advanced and critical technologies, thus serves as a cautionary example.

China's involvement in global cyber espionage, influence operations, and intellectual property theft has faced widespread criticism, particularly from Western nations. This negative perception recently escalated with accusations against China for foreign interference aimed at election meddling.

These hostile tactics have had significant repercussions for China, leading to bans on TikTok and 5G telecommunications networks in multiple countries over national security concerns.

Even among its allies, reports of poor performance and a lack of transparency and accountability in China's defence equipment have contributed to a decline in its global arms exports in recent years.The global view of China is further illustrated by the 2023 Pew Research survey conducted across 24 countries, where 67 per cent expressed a negative opinion of China, and 57 per cent regarded its foreign policy as interventionist. Thus, it can be concluded that trust in China is significantly lacking. IANS Analysis: Why no one trusts Chinese? | MorungExpress | morungexpress.com

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‘With just 20 health workers per 10K people, strain on healthcare is immense’

New Delhi, (IANS): With just 20 health workers per 10,000 people, unevenly distributed across regions, the strain on healthcare infrastructure is immense, Dr Shuchin Bajaj, Founder & Director Ujala Cygnus Group of Hospitals, said on Sunday.

Since India gained independence in 1947, the population has grown from 336 million to about 1.5 billion, which has triggered issues at several levels, such as public health, poverty, infections and others.

On World Population Day, which is observed on July 11 every year, it is important to recognise that overpopulation in India profoundly impacts public health, the doctor said.

"This imbalance leads to overcrowded hospitals, inadequate medical services, and heightened risks of infectious diseases due to poor sanitation and water access," Bajaj told IANS.

"Moreover, declining fertility rates, with many states below replacement levels, don't alleviate the burden but rather highlight the disparities in healthcare delivery," he added.

The consequences of overpopulation extend beyond healthcare, affecting air and water quality, and exacerbating respiratory and waterborne illnesses.

According to Bajaj, malnutrition and food scarcity are rampant as resources struggle to keep pace with demand.

"Our healthcare systems are stretched thin, struggling to provide even basic care and manage chronic conditions effectively, which inevitably leads to higher morbidity and mortality rates," he said.

The doctor mentioned that addressing these challenges demands not just immediate action but also "sustained commitment to comprehensive public health strategies and sustainable development policies".Bajaj also highlighted that there is a great need to advocate for equitable healthcare access and prioritise investments in health infrastructure to ensure a healthier future for all. ‘With just 20 health workers per 10K people, strain on healthcare is immense’ | MorungExpress | morungexpress.com

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Millions of UK adults may have lost money to a financial scam in the last year

12% of UK adults have admitted to losing money to a financial scam in the last year, according to new research[1] from WEALTH at work. This could potentially equate to 6.2 million adults[2] across the UK.

The research found that of those who had lost money to a financial scam, the average amount was over £1k[3].

These findings come despite almost 3 out of 4 (72%) of adults saying that they are confident in their ability to identify a financial scam.

The research also revealed the worrying impact losing money to a financial scam had on people. It found that two out of five (40%) find it difficult to trust that any financial information is legitimate, more than a quarter (27%) say it’s had a negative impact on their mental health, and almost a quarter (24%) do not feel safe investing their money. Losing money to financial scams has also meant that more than a fifth (22%) have had to change their plans for the future.

To help employees avoid falling for a financial scam, through its research, WEALTH at work has identified the common financial scams that people lost money to in the last year:

Purchase scams – 27% of those who lost money to a financial scam said it was through the sale of fake products or goods online.

Investment scam – 19%said it was through scams that encourage investing in fake opportunities or pyramid schemes.

Friends or family scam – 18%said it was through messages sent claiming to be someone they knew asking for money.

Bank account scam – 18% said it was through fake claims that their account had been compromised.

Tech support scam – 15% said it was through fake technical support services that were used to obtain personal details.

Befriending/romance scam – 14% said it was through scams where someone becomes your friend, then asks for money.

Pensions scam – 13% said it was through fake promises of guaranteed returns or early access to their pension.

Tax refund scam – 10% said it was through fake promises of tax rebates.

Lottery scam – 9% said it was through fake claims that they’ve won a prize

Jonathan Watts-Lay, Director, WEALTH at work, comments; “Financial scamming is rife and people need to be on their guard as fraudsters use many convincing techniques to persuade their victims that they are genuine. Many of these scams look completely legitimate and are not easy to spot. People often get seduced by the promise of investment returns which are too good to be true.

He adds; “Those that run scams are clever and may have been able to get hold of personal details. They often have very professional looking websites and literature which makes it hard to distinguish from the real thing. They will also use technology and try to contact individuals through various means such as social media, texts, telephone calls and emails. If someone is planning to transfer any money or make a payment, but they are not 100% sure that they are doing the right thing, they should stop and think to give themselves time to check it out. If they are feeling harassed, they should hang up the phone or delete the message. Phone companies should be able to help by blocking any offending numbers, and email providers can help block emails from specific senders. People should be aware of what they share through social media and check that their privacy settings are as secure as possible.”

Watts-Lay explains; “Unfortunately, the strain on household finances caused by rising costs could mean that some people are more vulnerable than ever, and fraudsters can take advantage of this. Those approaching retirement could also be a key target as they could have access to relatively large sums of money. I urge everyone to never rush to make a decision when it comes to their money, as anything that talks about time limited offers is likely to be a scam.”

He adds; “We would encourage people to follow the 3 step approach of the national ‘Take Five’ campaign by UK Finance, a leading industry body for financial services in the UK. The campaign urges individuals to stop and think before parting with money, challenge if something is fake, and protect their money by contacting their bank if they think they’ve fallen for a scam.”

Watts-Lay comments; “Before investing any money, people should check that the company is registered, with the Financial Conduct Authority (FCA) first, as if they’re not, it’s probably a scam. The FCA’s financial register can be found here https://register.fca.org.uk/s/. The FCA’s ScamSmart website also includes a warning list of companies to be aware of www.scamsmart.fca.org.uk.”

If anyone thinks that they are being scammed, they must report it to Action Fraud in England, Wales or Northern Ireland, either online or by calling 0300 123 2040. In Scotland, they should report to Police Scotland by calling 101.

He adds; “Many leading employers offer financial education, guidance and access to regulated financial advice to help people understand the warning signs when it comes to a scam so that it can be avoided. Employers play an important role in supporting the financial wellbeing of their employees and helping them to protect their money from scams throughout their career and at retirement is key. As well as this, many employers also provide employees with access to trusted savings and investment vehicles such as a Workplace ISAs or Share Plan, so the fear of being scammed should never be a barrier to saving for the future.”

[1] Research for WEALTH at work was carried out online by Opinion Matters throughout 01/05/24 – 07/05/24 amongst a panel of 2,061 UK adults (aged 18+).

[2]12% (11.6448326055313%) of people lost money to a scam multiplied by the UK adult population of 53,646,829 (ONS 2022 18+ mid year estimate) = 6,247,083 adults across the UK (rounded to 6.2 million).

[3] The research found that the mean figure of UK adults who lost money to a scam was £1111.21 which has been rounded to over £1k. Source: https://hrnews.co.uk/millions-of-uk-adults-may-have-lost-money-to-a-financial-scam-in-the-last-year/

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Sticky Floors: Only 26% Of Working-class Female Professionals Have Been Offered A Promotion At Their Company

26% of female professionals from working-class backgrounds have received a promotion at their current company – less than half the number of female professionals from upper-middle-class backgrounds (59%).

In light of International Women’s Day this Friday (8 March), specialist recruitment company Robert Walters releases new figures on the pay and progression of women from working-class backgrounds in the UK & Ireland.

Social Mobility’s 2023 report found that on average, professionals from working-class backgrounds are paid 12% less a year – which means they are working one out of every eight days for free.

However – new research from Robert Walters’ annual ED&I report highlights how inequalities are disproportionately impacting working class women’s rates of progression and pay – as they are forced to carry the double burden of both class & gender pay gaps.

Coral Bamgboye, Head of Equity, Diversity & Inclusion at Robert Walters UK: “We are conscious of the glass ceiling stalling the progression of female professionals however, our research attests to ‘sticky floors’ placing further constraints on female professionals from working class backgrounds.”

Progression obstructed

Just a quarter (26%) of women from working class backgrounds have received a promotion at their current company – 20% less than their male counterparts and 34% less than women from upper-middle class backgrounds.

Not only that, but 32% of women from working class backgrounds report not being at all aware of what they need to do to get a promotion – the highest across gender & socio-economic class.

Coral comments: “The poor promotion rate of working-class women is closely tied in with their limited awareness of the steps necessary to secure one.

“Disparities start to form right from higher education when it comes to career advancement – with working class women struggling to easily access or afford career advice, work experience or unpaid internships at school, right through to mentorship opportunities goal-setting resources and clear pathways upwards at work. This has a knock-on impact on progression – leading them to become stuck in junior positions on significantly lower rates of pay.”

Rates of pay lag

Women from working class backgrounds bear a double burden when it comes to pay – grappling with both the class pay gap of 12% and the gender pay gap which sits at 7.7% for full-time employees in the UK.

The Robert Walters report found that 52% felt underpaid at work – 17% more than women from upper-middle class backgrounds.

Whilst 50% of women from working class backgrounds experience a salary ceiling of £21k – twice the rate of men from similar backgrounds (25%) and 32% more than female professionals from upper-middle class backgrounds (18%).

The gaps are even more pronounced further up pay brackets – just 1% of women from working class women are earning between £55-100k (group least likely to be earning in this bracket) – compared to 19% of women and 29% of men from upper-middle class backgrounds.

Cost of living bites

A recent study by money.co.uk found that on average, women save 35% less than men – so, they have less of a safety net from cost-of-living hikes.

Robert Walters’ report found that women from working class backgrounds are most likely to either be living paycheque-to-paycheque (31%) or relying on additional streams of income (20%) – 14% more than men from similar backgrounds and over double the number of men from upper-middle class backgrounds.

Negotiations falling flat

Despite being on the lowest rates of pay, over two-thirds (64%) of women from working class backgrounds haven’t negotiated for a raise in their entire career (the highest across all genders and socio-economic groups).

Factors preventing working class women from negotiating:

• 26% did not think their employer would offer them a pay-rise – 10% more than upper-middle class women
• 22% lacked the confidence to negotiate – 10% more than men from similar backgrounds
• 12% did not negotiate due to their company’s low profit / cost cuts – twice the amount of men from similar backgrounds

Of those who did negotiate, 26% received less than half of their desired raise and nearly a third (32%) did not receive any of raise at all. Whilst 64% of men from upper-middle class backgrounds received between 50-100% of what they negotiated for.

Coral comments: “It’s clear to see why rates of pay for women from working class backgrounds are lagging and the ‘sticky floor’ problem persists – with employees suffering increasing pay instability as the cost of living continues to rise.

“What is more, when this group feel empowered to negotiate for more, they are then faced with diminished chances of success. Therefore, as businesses we have a role to do more than simply advertise that ‘these advancement opportunities exist.”

Coral’s advice on how companies can clean up sticky floors and uplift working-class women:

• Equal advancement opportunities – introducing mentorship programmes for professionals targeted at lower socio-economic classes can support their professional growth and prevent them hitting progression ceilings. It is not only important that all employees are provided with clear paths to progression but that promotion processes are always transparent.
• Transparency on pay-gaps – women from working-class backgrounds are met with a double burden when to comes to pay – impacted by both the class pay gap and the gender pay gap. That is why it is more important than ever for companies to report transparently on their own pay gaps and coordinate a strategy to address them.
• Employee Resource Groups (ERGs) – having specific ERGs can help provide a sense of community and support for professionals from similar backgrounds.
• Ongoing assessments & adjustments – As an employer, it is important to constantly be assessing your own culture and levels of inclusion – from the start of the hiring journey to on-the-ground within the workplace. Through implementing things like anonymous surveys and evaluations, regular Q&As and open discussions. Sticky Floors: Only 26% Of Working-class Female Professionals Have Been Offered A Promotion At Their Company - HR News:

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It can be hard to challenge workplace discrimination but the government’s new bill should make it easier

Alysia Blackham, The University of Melbourne

Alex Gutierrez worked for MUR Shipping and its predecessors for nearly 30 years. But in 2018 he was told, in line with company policy, it was time to set a retirement date.

Gutierrez was moved to a fixed-term contract, asked to train his replacement and ultimately resigned from his job. He then complained to the Australian Human Rights Commission and brought his claim to court, alleging age discrimination.

He won the case but he also lost.

The court found the company had discriminated. But Gutierrez’s damages – A$20,000 - dwarfed his legal costs, which amounted to about $150,000. The low damages also meant Gutierrez might have to pay MUR’s costs, as the damages were lower than a previous settlement offer.

Gutierrez was the first person to win an age discrimination case in court in the roughly 20 years the federal Age Discrimination Act 2004 has existed and his situation explains why. You can win in court but still be hugely out of pocket for your costs and your employer’s costs. Few people take the risk.

That problem will be largely eliminated under a new government bill before the federal parliament. The bill would introduce a modified “equal access” cost protection provision for discrimination claims.

How changing the law would help

If the bill passes, claimants (workers) will generally recover their costs when their claim is successful. Respondents (employers) cannot generally recover their costs, except in limited circumstances. This could significantly increase the number of workers who are willing to sue over discrimination, of any kind.

If the changes to the law are passed, the cost of lodging a complaint will be less prohibitive. Dmytro Zinkevych/Shutterstock

Discrimination at work is common: in one survey conducted for the Australian Human Rights Commission, 63% of respondents said they had experienced age discrimination – being considered too young, or too old - in the last five years.

But few people challenge discrimination in the workplace. In my research on age discrimination law, I found people were often concerned about the costs of making a complaint. This includes financial costs, but also personal and emotional costs. People were also worried about the time it might take to resolve.

Costs have been a particular problem under federal discrimination law.

Australia has discrimination laws at state, territory and federal level. Discrimination is also banned under industrial law – the federal Fair Work Act 2009. In every jurisdiction except Victoria, a complaint is first made to a statutory equality agency, which tries conciliation.

In many cases, this succeeds and most claims are resolved, though many are withdrawn.

Conciliation can save time and money

Conciliation is comparatively quick and cheap and lawyers are often not involved because you can represent yourself.

It is when a complaint isn’t resolved at conciliation that the costs increase. In the states and territories, and under the federal Fair Work Act 2009, parties mostly pay their own costs (that is, the cost of a lawyer).

It is different under federal discrimination law. In the federal courts, the losing party generally pays the winning party’s costs. This makes the stakes of a discrimination claim incredibly high: if your claim fails, you may not just have to pay your own legal bill, but also the other side’s legal bill.

The perils of costs were shown by Gutierrez’s case. In Gutierrez v MUR Shipping Australia Pty Limited, despite winning his claim of age discrimination, Gutierrez had to appeal in order to escape punishing legal costs.

Fortunately, Gutierrez had his appeal upheld; his damages were increased to $232,215, so he was no longer liable for the other side’s costs, and he had his appeal costs paid. But not every claim under the current law will be so lucky.

Prohibitive costs can stop people from taking action

Costs make challenging discrimination at work under federal law much more difficult. The human rights commission’s Respect@Work report found the risk of a costs order was a significant “disincentive” to bringing a claim under federal law.

The new bill might remove this disincentive by re-balancing the costs of claiming, enabling many more people to challenge discrimination in the federal courts.

We all have an interest in challenging discrimination and inequality. Research suggests more equal societies are happier and healthier overall. There is a good chance, too, many of us will experience some form of discrimination in our working lives.

Using discrimination law – making a complaint – can benefit us as individuals but can also force broader change. It can lead to policy change and it can force employers to take equality seriously.

Alysia Blackham, Associate Professor in Law, The University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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1 in 3 Gen Z employees say they’ve experienced a mental health problem

Gen Z employees (16-26 year olds) report having experienced more mental health issues related to stress, anxiety and depression than any other cohort in the last 12 months. 77% say they are likely to leave their employer, while only 23% say they are committed to staying. And although they represent the most financially stressed out of all generations, their happiness at work is more about cultural factors than it is about money.

These represent just some of the important findings to come out of a new report from Fruitful Insights, in partnership with Legal & General Group Protection, entitled Gen Z – Shaping the Future of UK Workplaces.

Both organisations say these findings underlie:the employer’s role in supporting the well-being of their Gen Z employees and the implications of not doing so

the need to consider that wellbeing is subjective, so genuinely understanding workforce needs is key

the evolving understanding that ‘good work is beneficial for health’ and should be considered a goal in recovery, prevention and levelling up well-being for the working-age population.

The report is based on an analysis of Fruitful Insights’ UK employee population data. It looks at what employers need to consider when managing their Gen Z employees, as they become the mainstay of the UK workforce. By 2033, Gen Z will make up over a third of the working population, as Baby Boomers will have probably all retired.

• “The fact that 1 in 3 Gen Z employees say they’ve experienced mental health problems should be a big concern for people and business; with implications for Diversity Equity Inclusion (DEI), Environment Social Governance (ESG) and, ultimately, performance.
• “This finding could be related to life stage stressors and different expectations of life and work in comparison to older peers. And/or it could be symptomatic of Gen Z’s greater awareness and understanding of their own mental health and a greater willingness to reach out for help.
• “Any which way, recruitment and retention is a big problem with this cohort but, at the same time, the value Gen Z place on cultural aspects represents a big opportunity that needs to be grasped. Business has a vital role to play in supporting the wellbeing of Gen Z; providing greater purpose and community to this group, relevant benefits and services, and communication that not only connects, but that also contributes to creating the conditions for a better wellbeing culture.”

Mike Tyler, Chairman and Co-Founder of Fruitful Insights

The concept of a job for life seems completely alien to Gen Z

Unlike their elders in the Baby Boomer group (age 59+ currently), Gen Z employees are the least likely to expect to have a job for life. When asked whether they had experienced any major life events over the last 12 months, job loss represented the number one life event impacting this group. This came ahead of marriage/serious relationship, birth of a child, divorce/relationship break up, serious or legal conflict with someone, death of a close friend or relative, serious ill health of a relative and moving home.

Money can’t buy happiness: a truism at all ages

Gen Z employees don’t focus exclusively on money when they decide if they’re happy at work. The following were found to all play a big role: feeling valued at work; feeling that the employer cares about their wellbeing; having confidence in the business and its ethos; and flexibility about how they work at home and in the workplace.

The research also asked participants whether they felt the company treats everyone fairly, irrespective of gender, race or ethnicity. Four in 10 (41%) Gen Z employees either disagreed or were neutral on this statement.

Additionally, 70% lack a sense of fulfilment in their live and 45% ‘rarely’ or ‘sometimes’ have a positive outlook.

Meanwhile, nearly 45% of Gen Z employees surveyed, say they’d like to work from home 2-3 days a week. This brings implications for workplace technology and the ability to afford the same digital experience at work as Gen Z employees enjoy in their personal lives, says Fruitful and Legal & General.

Embrace social media in communications, but don’t overdo it

Perhaps unsurprisingly, the report states that Gen Z employees are active social media users and often share very direct feedback in social forums. To communicate effectively, employers should be present and appropriately active in such workplace channels; especially digital videos and podcasts.*

However, although flexible working patterns and a natural affinity for technology may offer many advantages, they may lead to feelings of isolation for some, according to the report’s findings.

In comparison to other generations, Gen Z employees feel more disconnected from their local communities and that they have fewer people in their lives they can depend on to help them.

• “Gen Z are the true digital natives. But being always on isn’t always good. There are indications in this report that the use of digital technology may be inadvertently leading to some less-than-healthy outcomes.
• “Balance and choice across the spectrum of face-to-face to digital seems key; in terms of how support is accessed and how it’s communicated. Embrace social media but don’t assume that’s the only way Gen Z want to receive information. And don’t assume that information, on its own, leads to wellbeing.
• “Group income protection insurers and intermediaries have an important part to play in all of this, using tools like Fruitful Insights and making full use of Legal & General’s in-house vocational clinical team, as well as our strategic communication toolkit.”

Vanessa Sallows, Claims and Governance Director at Legal & General Group ProtectionLegal & General Group Protection partnered exclusively with Fruitful Insights last year to help clients with 100+ employees using a range of products quantify the impact of employee wellbeing on productivity. Based on this intelligence, intermediaries and their clients can identify priorities, action plans and follow-up assessments to help improve well-being and performance. Meanwhile, Legal & General’s in-house, multidisciplinary, vocational clinical team provide support to both employers and employees that is shaped and guided by its person-centred philosophy and the underlying belief that ‘good work is beneficial for health’.1 in 3 Gen Z employees say they’ve experienced a mental health problem - HR News

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Almost 2 million Workforce Australia payments have been suspended in the past year, with devastating impact

Shutterstock Simone Casey, RMIT University

Last year the federal government replaced the jobactive employment support program with what was expected to be a more flexible and improved support system for jobseekers, Workforce Australia.

Yet, in the 16 months the contracted-out system has been running, almost 2 million income support payments have been suspended, affecting 70% of participants.

Under the new system, participants must meet a points target to receive payments.

For example, if the default points target is 100 per month, this can be met by a minimum of four job applications (worth 5 points each) and a mix of other activities. Points targets are adjusted to 60 per month for parents and people with disabilities.

Why are payments suspended?

Payment suspensions are supposed to get people to comply with requirements such as attending job interviews and undertaking training, education classes or other activities to reach their points target.

When these criteria are not met, participants are given a two-day grace period to resolve the problem, after which payments are automatically suspended. The suspension remains until the target is met or the suspension is lifted by a job service provider. The average suspension period is four days.

The figure of almost 2 million payment suspensions, cited at a Senate Estimates committee meeting last month, showed they have been occurring at an alarming rate since Workforce Australia started.

Workforce Australia participants might be required to attend a certain number of job interviews to reach their points target. Shutterstock

Committee member and Greens senator Janet Rice highlighted concern about the high suspension rate and representatives from the Department of Employment, which runs the program, agreed it was an issue.

If 70% of participants have been suspended, that makes it very likely some people have lost payments multiple times. These people might be long-term unemployed due to health, disability or discrimination in the workplace.

Suspending payments to these already disadvantaged groups has a devastating impact because income support payments are grossly inadequate. The single person rate of JobSeeker payment is only $749.20 per fortnight, and the maximum rate of Commonwealth rent assistance is $101.07, adding up to $860.27 a fortnight.

Meanwhile an average share house rent in a capital city like Melbourne is $446 per fortnight - with single renters often paying double - and this leaves people without much room for delays to their income support payments.

The damage caused by suspending payments

Research into the impact of payment suspensions on people’s mental health shows the consequences are dire.

This is especially so during the current cost-of-living crisis when people have enough to worry about just paying rent, buying food or keeping a car on the road.

The harm caused by suspending payments is apparent in my recent analysis of the individual submissions to the parliamentary inquiry into Workforce Australia.

I coded the frequency of words relating to poor psychological wellbeing as represented in the table. Of the 69 submissions reviewed, 52 identified how payment suspensions caused high levels of stress and affected trust of the job service provider.

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The word-frequency results show threats to payments have a devastating effect on the mental health of people receiving unemployment payments. Many felt bullied by their job services providers.

The impact of suspensions is reflected in this quote from one of the submissions. As one 53-year-old woman said in her submission:

I would ask you to consider and recognise that those of us who are reliant on this system are deprived of any means to control our circumstances. A system failure, a missed phone call, a misunderstanding or a simple lack of communication can lead to a suspension of payments.

The stress associated with being constantly under threat by the whims of a particular person, system faults or even a missed phone call is immeasurable. That I might be unable to eat, go to the doctor, pay for medication, buy petrol, pay bills on time (so as not to incur further costs), pay for internet/phone … is considerable and has a massive impact for those of us who are living under these unfortunate circumstances.

It effects our physical and emotional health, our ability to participate in our communities, our sense of future and diminishes our sense of self-worth and our accomplishments – reducing them to meaninglessness while keeping us in poverty.

Why is the suspension rate so high?

The suspension rate is high because the criteria people must meet to receive payments are unrealistic, and because job service providers make mistakes.

Some people can’t meet targets or report points under the points model on time, or don’t attend appointments because they’ve been given insufficient notice or the appointments have been scheduled at times they are already working or in training.

In a speech last month, Labor MP Julian Hill, who heads the parliamentary inquiry into Workforce Australia, told a conference the powers of the system’s providers to make decisions affecting payments was a “major false economy”.

This “false economy” of payment suspensions has been a fixture of job services requirements for nearly two decades.

Workforce Australia was meant to have addressed this with the points model. Instead, the points reporting is onerous and there is no evidence it improves the employment prospects of people who have been struggling to find work.

The next steps

When the parliamentary inquiry into Workforce Australia submits its report this month, it is likely to recommend big changes including returning and payment suspension decisions to the government’s former Human Services department, Services Australia.

If that happens, it will be vital to move swiftly.

As was the case with the former government’s highly discredited and unlawful automated debt assessment and recovery system, Robodebt, the widespread use of payment suspensions is unfair and causes acute distress to people already surviving on inadequate income support.

Simone Casey, Research Associate, Centre for People, Organisation and Work, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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How the Israel-Hamas war could affect the world economy and worsen global trade tensions

Rawpixel.com/Shutterstock Daniele Bianchi, Queen Mary University of London

Global geopolitical tensions often play a pivotal role in shaping people’s perceptions of economic growth. Research shows concern about such issues can cause people and businesses to become more cautious about spending and investing, which can ultimately lead to economic recession.

The recent escalation of the Israel-Palestine conflict is no different. Investors around the world are worried about the repercussions of this war – particularly in light of an already bleak picture for global economic growth.

Hamas’s October 7 attack on southern Israel is the latest chapter of a cycle of violence that has been going on in this region for decades and, sadly, seems to have no end in sight. While the reasons behind these events are complex, the conflict’s potential immediate and long-term economic ramifications are easier to grasp.

After all, if the Russia-Ukraine war has taught us one thing, it’s that we should be mindful of the intricate interdependencies that shape the global economic and geopolitical landscape.

How conflicts can affect the economy

Internal and inter-state conflicts often have a significant effect on stock market indices, exchange rates, and commodity prices – sometimes even sending prices higher in the lead-up to hostilities. The longer-term economic impact is typically more complicated to assess, however. The lasting effects of even seemingly dramatic events on investor behaviour can be hard to predict.

Conflicts in the Middle East tend to lead to spikes in oil prices – think of the OPEC oil embargo of 1973-1974, the Iranian revolution of 1978-1979, the Iran-Iraq War initiated in 1980, and the first Persian Gulf War in 1990-91. Since the region accounts for nearly a third of global oil supply, any instability can create market uncertainty based on concerns about interruptions to global oil supply.

This uncertainty is reflected in the risk premium in oil markets. This is the price paid for oil traded ahead of time in the futures markets versus the real-time price of oil. It reflects the profits that speculators expect to receive from buying and selling oil during a time of conflict, as well as the hedging needs of businesses that produce and consume oil and their concerns about supply and demand.

And so, the effect of the latest Israel-Hamas conflict on global financial markets will depend on the involvement of other major regional powers. If the conflict remains between Israel and Hamas, the effect will probably be limited and arguably exclusive to countries with direct trade exposure to Israel or Palestine.

But if the conflict spreads to major oil-producing nations in the region such as Iran, the global economy could face severe repercussions as energy costs for businesses and households could spike if supply is interrupted.

Higher energy prices would hamper central banks’ efforts to tame inflation pressures in most advanced and emerging economies. If this leads to a “higher for longer” monetary policy that keeps interest rates elevated, it would push up the cost of borrowing and refinancing by governments, companies and people.

History can offer some insights into how the impact on the global economy could unfold under these different scenarios. For instance, the 50-day war between Israel and Hamas in 2014, which killed 2,200 people, mostly civilians, had no significant effect on the global economy or financial markets.

Yet, when Israel and Hezbollah clashed in Lebanon in 2006, oil prices surged globally due to fears of a broader conflict in the Middle East.

What to expect this time

Unfortunately, there is another factor to consider at the moment. The escalation of the Israel-Palestine conflict has happened alongside the realignment of various global alliances. This slow creep of “deglobalisation” can be seen in a shift in trade policies in recent years.

Countries such as the US and UK are relocating economic activity including sourcing or manufacturing products from different countries out of concern about relying on suppliers in potentially hostile regions, as well as the impact of imports from low-wage countries on struggling local labour markets

At the moment, these shifts can also be seen in the reactions to the Hamas attack on Israel. A two-state solution) to the Israel/Palestine conflict was initially laid out by the United Nations in 1947 and reaffirmed in 1974, with almost unanimous support around the world.

But there has been some nuance in the international reactions to the attack. With most western countries quickly voicing support for Israel’s right to defend itself, while countries like China and Russia called for a ceasefire without taking a stance on Hamas.

This suggests that the issue of Israel-Palestine could tie in with the broader trend towards the new geopolitical divisions that were already starting to emerge before Hamas’s attack.

A prolonged conflict between Israel and Palestine, especially with the involvement of major regional powers, could further accelerate this global realignment and have detrimental consequences for global economic growth.

Investors often invest in gold as a eamesBot/Shutterstock

Under these circumstances, investors are already bracing for increased financial volatility across the board – from stocks and government bonds to commodity markets. So-called safe-haven assets like gold are typically used as protection against overwhelming economic uncertainty. The price of gold has shot up following the latest escalation in the Israel-Palestine conflict.

Financial markets will continue to monitor the conflict between Israel and Hamas for signs of escalation. Anything that pushes oil prices up further will reignite fears of higher inflation.

Unfortunately, this is happening just as many countries were starting to see inflation slow again after two years of persistently high consumer prices.

Daniele Bianchi, Associate Professor of Finance, Queen Mary University of London

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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