Labour faces criticism as youth unemployment nears 18%
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IN SHORT
UK youth unemployment is projected to near 18%, a level not seen in over a decade, drawing criticism for the Labour party and calls for tax cuts on jobs. Concurrently, jobless households have reached 14.4% in the first quarter, the highest in two years, according to the Office for National Statistics. The Office for Budget Responsibility warns government borrowing will spike due to the Iran war and energy shocks, having underestimated previous impacts. Meanwhile, businesses caution that a crackdown on zero-hours contracts could reduce seasonal job availability.
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Key Numbers
18%projected UK youth unemployment
14.4%UK jobless households in Q1
two yearshighest jobless household rate in
Who's Involved
Labour party
political party facing criticism over youth unemployment
Office for National Statistics
body reporting jobless household figures
Office for Budget Responsibility
body warning of increased government borrowing
UK businesses
groups concerned about zero-hours contract regulations
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Key facts
Youth unemployment in the UK is projected to reach 18%.
The current youth unemployment level has not been seen in over a decade.
Jobless households in Britain reached 14.4% in January-March.
The jobless household rate is the highest in two years.
Government borrowing is set to increase significantly.
The Iran war is expected to contribute to increased government borrowing.
Lingering effects of the energy price shock will also increase borrowing.
The OBR underestimated the impact of the Russia-Ukraine war on gas prices and public finances.
Businesses warn that zero-hours contract regulations may reduce seasonal jobs.
Youth unemployment in the UK is projected to reach 18%, a figure not observed in more than ten years. This development has led to criticism directed at the Labour party, with some advocating for tax cuts on jobs as a potential solution. In parallel, the percentage of jobless households in Britain climbed to 14.4% during the January-March period. This marks the highest rate recorded in two years, as reported by the Office for National Statistics, indicating a substantial increase in unemployment affecting entire households. The Office for Budget Responsibility (OBR) has issued a warning that government borrowing is expected to rise significantly. This projected increase is attributed to the ongoing Iran war and the persistent effects of the earlier energy price shock. The OBR has acknowledged that its previous estimates underestimated the full impact of the Russia-Ukraine war on gas prices and the nation's public finances. Furthermore, UK business leaders have expressed concerns regarding potential new regulations on zero-hours contracts. They fear that such measures could lead to a reduction in flexible seasonal employment opportunities, particularly impacting hiring during peak periods like the Christmas season.
FREQUENTLY ASKED
Youth unemployment is projected to head towards 18%.
It would be the first time in over a decade that youth unemployment has reached this level.
There are calls for Labour to cut taxes on jobs.
A business group warns that unemployment could hit 2 million under Labour.
The 16-24 year olds are most affected by the lack of jobs.
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