UK unemployment set to surge

The latest analysis from the Item Club suggests that Britain's labor market will endure its biggest hit since the pandemic as high fuel costs and economic uncertainty take their toll.

Unemployment is projected to peak at 5.8 percent, while interest rates are expected to remain on hold despite the inflationary pressure.

Forecasters indicate that the economy could flatline for at least six months, pushing the country to the brink of a technical recession.

The report highlights the severe impact of the Middle East conflict on discretionary spending and corporate investment across the UK.