Watchdog warns unemployment will rise again because of Brexit uncertainty even if a transition deal is struck
The think-tank's projection is more pessimistic than independent the Treasury forecasts which say GDP will fall to 1.2 per cent
BRITAIN’S jobs miracle will soon end because of uncertainty surrounding Brexit, an international watchdog warned yesterday.
Unemployment will start rising again slowly from its record low of 4.3 per cent, even if a Brexit transition deal is struck.
The Organisation for Economic Co-operation and Development also predicted grow will slow dramatically over the next two years because of falling consumer confidence and a collapse in investment.
The Paris-based think tank’s projection is even more pessimistic than independent Treasury forecasts last week, saying GDP will fall to just 1.2 per cent in 2018 and 1.1 per cent in 2019.
The Office for Budget Responsibility expects GDP growth of 1.4 per cent in 2018 and 1.3 per cent in 2019.
Britons will dip into potential savings in an attempt to keep up spending habits.
The OECD also warned about spiralling levels of household debt in the UK.
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It posed a “major financial stability risk”, particularly in light of stagnant wages which continue to be outstripped by the rate of inflation.
A Treasury spokesman said: “There are over three million more people in work since 2010 and we are building an economy that is fit for the future.
“The Budget and our Industrial Strategy set out a balanced approach to reducing the deficit, supporting our vital public services, and investing to improve our productivity.”