According to official figures, UK unemployment fell by 52,000 to 1.6 million from September to November last year. At this point, the employment rate was at a steady record of 74.5% and the UK jobless rate declined to an 11 year low of 4.8%. This year the Bank of England has predicted that the unemployment rate will rise from 4.8% to 5.6% within two years. The unemployment rate is widely speculated to rise this year, as companies become more cautious and hire less. This is due to the unknown outcomes of Brexit as they wait for more clarity on the country’s future. The consequences of Brexit are unpredictable as negotiations could take years to complete. Alongside this, as the broader economy slows, businesses face higher costs and waning demand, directly impacting job growth. Analysts at USB believe that the fall in the value of the Pound has helped exports which in turn has kept the economy going but is unlikely to be sustainable. Rising inflation will mean increases in the cost of food, drink, clothing and electricals. For companies importing parts for their products such as car parts, this is bad news as it will increase their costs.

It is not all doom and gloom.