UK employers warns of slower growth, higher unemployment
The business group said higher energy costs and weaker investment will push unemployment to 5.5% and slow GDP growth in 2026 and 2027.
- On Tuesday, the Confederation of British Industry cut its forecast for UK economic growth, warning that the Iran war and rising energy prices will squeeze living standards as unemployment reaches its highest level in over a decade.
- Inflation is projected to accelerate towards 4% by the end of this year, while the Bank of England is expected to maintain interest rates at 3.75% for the remainder of 2026 to manage persistent economic pressures.
- Unemployment is expected to worsen, with around 200,000 more Britons losing their jobs as the rate climbs to 5.5% this year, up from the current 5%, or around 1.8 million people.
- CBI Chief Executive Rain Newton-Smith urged Prime Minister Keir Starmer's government last week not to treat business as "a cash tap," as GDP growth forecasts for 2026 and 2027 were cut to 1.1% and 0.9% respectively.
- Global shocks are compounding the UK's low-growth story, according to CBI Chief Economist Louise Hellem, who stated, "We saw weak momentum throughout 2025, but if it weren't for the latest global shocks, we could be having a much more positive conversation about the economy today.
14 Articles
14 Articles
UK Unemployment Set to Reach Highest Level Since 2015 as Iran Conflict Adds Pressure to Economy
The Confederation of British Industry (CBI) has warned that UK unemployment is on course to reach its highest level in more than a decade as rising business costs, weaker economic growth and global instability weigh on the economy. In its latest economic outlook, the business group forecast that unemployment will rise to 5.5 per cent of the workforce, equivalent to around two million people out of work. If realised, that would mark the highest u…
UK employers warns of slower growth, higher unemployment
The Confederation of British Industry cut its forecast for the country's economic growth on Tuesday and predicted unemployment would rise to its highest in more than a decade as the Iran war pushes up energy prices and squeezes living standards.
CBI: 200,000 more Brits to face unemployment this year
The UK economy is set for further pain in the months ahead, a top business group has warned, as consumers and businesses across the country suffer the effects of the Iran conflict, surging energy prices and a raft of government tax hikes. The Confederation of British Industry (CBI) has said that around 200,000 more Brits are on track to become unemployed before the end of year, while growth will slow to as little as 0.9 per cent next year, in a …
200,000 UK job losses forecast as Middle East conflict and energy costs hit economy | The latest National and International News
Aaron Chown Around 200,000 more Britons are set to lose their jobs this year as Middle East conflict and rising energy costs drag down the UK economy, according to new forecasts from the Confederation of British Industry. The influential business group warned that unemployment will climb to 5.5% in 2026, representing about two million people. The jobless rate currently stands at 5%, or around 1.8 million people, based on the latest Office for Na…
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