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flag UK unemployment to hit 5.5% by late 2026, driven by tax hikes, wage increases, and automation.

flag UK unemployment is projected to rise to 5.5% by late spring 2026, exceeding the pandemic peak, driven by the 2024 Autumn Budget’s £25bn national insurance hike, rising minimum wages, and pressures from automation and AI. flag Job losses are concentrated in retail and hospitality, with hiring stagnating and workforce reductions planned by many firms. flag Youth unemployment hit 16.1%, the highest in over a decade. flag Economists expect the Bank of England to cut interest rates by June, potentially three times, to counter weakening labor conditions and falling inflation.

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