UK Unemployment Expected to Peak at 5.1% in 2027, Economists Warn

UK unemployment forecast and DWP benefits support ahead of 2027: Leading economists at the ITEM Club expect the national unemployment rate to peak at 5.1% in mid-2027, potentially leaving around 150,000 more people out of work and relying on Department for Work and Pensions support.

UK unemployment forecast and DWP benefits support ahead of 2027, Digi Mart USA News (United Kingdom): Leading economists at the ITEM Club warn that the national unemployment rate is expected to peak at 5.1% in the middle of 2027. This equates to around 150,000 extra people finding themselves out of work.

Experts predict the unemployment rate will eventually recover and fall back to 4.7% by the end of 2028. In the meantime, tens of thousands of people could have to rely on Department for Work and Pensions (DWP) support next year.

The DWP says it provides a range of welfare benefits and support for unemployed people through Jobcentres and more intensive programmes such as the Work and Health Programme. Benefits on offer include Jobseeker’s Allowance (JSA), Universal Credit and Pension Credit, according to the department’s guidance on benefits and financial support for people looking for work.

Workers facing redundancy can seek help from the Jobcentre Plus Rapid Response Service. The service is available if they suspect they will be made redundant, during their notice period, or up to 13 weeks after being made redundant.

It can help with writing CVs, finding jobs, identifying benefits and training, arranging work trials where eligible, obtaining workplace support for disabled people through Access to Work, and claiming money toward travel, childcare, tools or equipment.

Additional redundancy support is available regionally. The DWP says Partnership Action for Continuing Employment (PACE) is available to people in Scotland, and the Redundancy Action Scheme (ReAct) is available to people in Wales.

Felix Reeves

Felix Reeves is the Digital Motoring Editor at USA News after joining in July 2023. He previously worked as a Motoring News Reporter at the Express.

If you have a story you want to share, email felix.reeves@icifmede.com or motoring@icifmede.com

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