At least 250,000 jobs at risk as UK nears recession

LONDON: Britain’s economy is “flirting with recession,” raising concerns that up to a quarter of a million jobs could be lost by mid-2027.

New reports from EY Item Club and Deloitte warn that the UK’s economic outlook is weakening, driven by global conflicts and rising energy costs.

Analysts predict the unemployment rate could climb to 5.8%, pushing the number of jobless people beyond two million for the first time in over a decade.

Matt Swannell, chief economic adviser at EY Item Club, said that “spiralling energy costs and ongoing supply chain disruptions are likely to push the UK to the brink of a technical recession” later this year.

Business leaders have identified energy prices, inflation, high interest rates, and cyberattacks as key risks over the next three years. The reports also highlight a shift toward defensive strategies, with companies focusing on cost-cutting and cash preservation, while scaling back investment and hiring plans.

“Rarely in the past 16 years have UK CFOs been more focused on cost control than they are today,” said Richard Houston.