The Office for Budget Responsibility (OBR) has published its economic and fiscal forecast, predicting a rise in the unemployment rate in 2026.
The forecast showed that unemployment is set to rise to a peak of 5.33% in 2026, up from 4.75% in 2025. Post 2026, the OBR said it predicts unemployment to fall, reaching a rate of 4.1% by 2030. The statistics come on the heels of the Spring Statement, delivered by chancellor Rachel Reeves today (3 March, 2026). Subdued hiring demand is the key cause for this fall, according to the OBR, with new entrants into the labour force struggling to find work. The OBR reported last month that unemployment rose to a near five-year high, highlighting private sector wage growth as an area wi...
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