The 海角视频's unemployment rate is projected to climb to five per cent at the start of next year before declining, according to a prominent forecaster.
In its most recent economic outlook, EY ITEM Club has indicated the 海角视频 labour market is expected to experience further deterioration over the coming months.
The unemployment rate has edged up from 4.4 per cent to 4.8 per cent over the past 12 months.
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Business surveys have revealed that employers cite the Chancellor's £25bn increase to national insurance contributions (NICs) as dampening recruitment activity and compelling firms to reduce workforce costs through redundancies.
EY economist Matt Swannell has forecast that unemployment will continue its upward trajectory until mid-2026 before retreating to 4.7 per cent in 2027, as reported by .
Swannell also indicated that economic expansion this year is set to exceed expectations, with GDP growth now predicted at 1.5 per cent owing to "greater momentum than expected throughout this year".
The forecaster has maintained its 0.9 per cent growth projection for 2026 and anticipates a 1.3 per cent increase in 2027.
In more encouraging news for the 海角视频's economic prospects, business investment forecasts have been revised upwards to 3.7 per cent this year from 1.2 per cent.
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Investment is anticipated to moderate to 0.8 per cent next year as companies adapt to higher effective tariff rates, although EY had previously forecast zero growth in business investment in its July update.
Unemployment to hit 海角视频 economy Inflation is also set to remain above the Bank of England's target two per cent rate throughout the next 12 months.
Swannell also forecast that Rachel Reeves' fiscal shortfall will reach £30bn at this year's Budget.
"Some of these changes [to taxes and spending] would need to be introduced almost immediately, although we can expect potential tax rises to be balanced with supply side growth measures," he said.
"Nevertheless, the combination of potential tax rises, global trade disruption and high interest rates is still anticipated to put a brake on economic momentum and produce modest growth over the next year."