Economic forecaster the Item Club has warned the UK will suffer the net loss of more than 160,000 jobs this year as a result of slowing growth and rising energy costs.
Item Club analysts, using the Treasury’s economic modelling, have forecast the majority of the job losses will be concentrated around sectors such as manufacturing, construction and retail.
The Times reports the forecaster as estimated a net loss of 163,000 jobs, amounting to a 0.4% drop in employment.
While manufacturing job cuts will primarily be due to rising energy costs, retail, accommodation and food and drink will also be impacted as consumers are forced to tighten their belts with less disposable income.
The unemployment rate stood at 4.9% in most recent data, but is expected to rise in the coming months to 5.1%, according to the Bank of England.
Rising interest rates and accelerating inflation can slow down labour markets, as employers cut back on hiring and increase layoffs to manage costs.
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