Labour Government Warned of 400,000 Job Losses, Unemployment Set to Hit 14-Year High

The Labour government is facing a stark warning that over 400,000 additional people could be out of work by the end of its first term, pushing unemployment to its highest level since 2014, according to new forecasts from the British Chambers of Commerce (BCC). This projection suggests the total number of unemployed Britons could reach two million.

Mass Job Losses Loom Under Labour

New forecasts from the British Chambers of Commerce (BCC) predict a significant rise in unemployment under the current Labour government. More than 400,000 additional people are expected to be jobless by the end of Labour’s first term, with the unemployment rate climbing to 5.5 per cent by 2028. This would mark the highest level recorded since 2014, as reported by GB News Politics.

The BCC projects around 418,000 more people will be unemployed by the close of 2028 compared with figures from the end of 2024. This increase would push the total number of unemployed people in Britain to approximately two million, as businesses continue to struggle with rising costs and weaker economic growth.

Young Workers Hit Hardest

Young workers, aged between 16 and 24, are expected to bear the brunt of these worsening job losses. The BCC estimates almost 167,000 additional young people could be without work by 2028 compared to the period immediately after Labour’s landslide election victory. Youth unemployment, already at an 11-year high of 16.2 per cent, is forecast to rise further to 17.8 per cent, the highest level since 2013.

• 418,000 additional people projected to be unemployed by 2028.
• Unemployment rate expected to reach 5.5 per cent, a 14-year high.
• Total unemployed Britons could hit two million by the end of the decade.
• Youth unemployment forecast to rise to 17.8 per cent, highest since 2013.
• Business leaders blame rising labour costs, AI use, and Chancellor Rachel Reeves’s tax increases.

What This Means for Britain

This forecast means hundreds of thousands of British families face the uncertainty and hardship of job loss, particularly young people trying to start their careers. It directly impacts your household budget and the economic stability of your community.

The BCC identified rising labour costs, the increasing use of artificial intelligence, and Chancellor Rachel Reeves’s tax increases as key factors. This suggests government policy is directly contributing to the economic pressures on businesses and, consequently, on employment.

Shadow business secretary Andrew Griffith criticised the economic outlook, stating that “lower growth, higher inflation and more unemployment is not what the doctor ordered for the UK economy.” He urged the Labour government to reverse tax increases that he claimed were “crushing families and businesses.”

The BCC has also downgraded its economic growth forecast for 2026 to just one per cent, indicating a weaker outlook for the wider economy. This slower growth directly impacts the prosperity and opportunities available to ordinary working people across the country.

Persistent inflationary pressures could force the Bank of England to maintain high interest rates until 2028, according to the BCC. This means higher borrowing costs for mortgages and loans, hitting your family’s finances and making it harder for businesses to invest and create jobs.

Deutsche Bank’s chief UK economist, Sanjay Raja, warned of “another wave of unemployment” over the summer months. This indicates that the economic challenges are not just long-term projections but an immediate threat to British jobs and livelihoods.

Share if you believe the Labour government must prioritise British jobs and economic stability.

This article is a factual summary of reporting by GB News Politics. Full original story available on their website. All quotes directly attributed.

Source: GB News Politics | Breaking Brexit News