Britain’s economy is currently “flirting with recession” sparking fears that a quarter of a million people could lose their jobs by the middle of 2027.
New reports from the EY Item Club and Deloitte warn that the UK’s financial health is flatlining due to global conflicts and surging energy costs.
Experts predict the unemployment rate will climb to 5.8% pushing the total number of jobless people over the two million mark for the first time in more than a decade.
Matt Swannell, chief economic adviser to the EY Item Club, noted that “spiralling energy costs and disruptions to supply chains will push the UK to the brink of a technical recession” later this year.
As business confidence hits its lowest point since the pandemic, companies are freezing hire plans and cutting costs.
Swannell added that “more expensive financing arrangements and a less certain global economic backdrop will pour cold water on companies’ investment plans.”
While the economy grew slightly earlier this year, that momentum is fading. Chancellor Rachel Reeves has met with banking bosses to manage the fallout but with inflation expected to hit 4% the road ahead remains difficult for British workers.
