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Item Club Warns Iran War Could Cut 163,000 UK Jobs
The forecasting group says rising energy and shipping costs will hit manufacturing, construction and retail, with unemployment projected to rise 0.4%.
- The Item Club forecasts Britain will lose 163,000 jobs this year, equivalent to a 0.4% employment decline, amid economic pressures from the Iran war.
- Soaring costs for fuel, energy, and materials, coupled with reduced consumer spending and shipping disruptions, drive the downturn. The Bank of England warned unemployment could reach 5.6% this year, up from 5.2% currently.
- Retail and hospitality sectors will suffer the biggest slowdowns across major cities. Employment in London will drop by 25,000, with reductions of 12,500 in Birmingham, 9,800 in Leeds, and 6,200 in Glasgow.
- Households in Newcastle, Belfast, and Birmingham spend 13% of disposable income on essentials, compared to less than 9% in London, leaving low-income areas particularly exposed to cost-of-living hikes.
- Manufacturing-Reliant South Wales and the Humber face job drops of 5,700 and 2,800 respectively. The Government plans to slash energy bills by up to 25% for 10,000 manufacturers to mitigate these impacts.
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19 Articles
Britain to lose 163,000 jobs amid Iran war fallout - two UK regions hit hardest
Two of the UK's lowest income regions will suffer the most painful jobs market woes in 2026, driven by sharp energy price rises and supply chain disruption from the Iran war, a new report suggests
·London, United Kingdom
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Coverage Details
Total News Sources19
Leaning Left6Leaning Right4Center4Last UpdatedBias Distribution43% Left
Bias Distribution
- 43% of the sources lean Left
43% Left
L 43%
C 29%
R 28%
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