Business · Economy · 2 hrs ago
Bank of England deputy warns young people bear cost of weak hiring
Bank of England deputy governor Clare Lombardelli says young people in Britain are bearing the brunt of weak hiring.
Employers are holding on to existing staff but delaying recruitment as they wait for uncertainty linked to the Iran war to ease.
Higher energy prices and rising costs have added to pressure on businesses, while consumer demand is weaker.
Youth unemployment has risen to its highest level outside the Covid pandemic since 2015.
The wider UK unemployment rate has risen to 4.7% this year, and almost a million young people are not in education, employment or training.
The Bank of England raised its main interest rate from 3.75% to 4% last week, and Lombardelli said another quarter-point increase could be considered in December.
The next decision will depend partly on the conflict, energy prices and economic data.
Bank of England deputy governor Clare Lombardelli warned that young people in Britain are bearing the cost of weak hiring.
She said employers are delaying recruitment amid uncertainty linked to the war in the Middle East, while redundancies remain limited.
UK unemployment has risen to 4.7% this year, and youth unemployment has reached its highest level outside the Covid pandemic since 2015.
Lombardelli said a further interest rate rise could be considered at the Bank’s December meeting.
- Who
- Clare Lombardelli, the Bank of England’s deputy governor for monetary policy, warned about the effects on young people.
- What
- She said weak hiring is worsening youth unemployment, and that another interest rate rise could be considered.
- When
- The article was published on 10 November 2026. Lombardelli said the December rate decision was live.
- Where
- Britain; Lombardelli was due to speak in London.
- Why
- Employers are delaying hiring amid economic uncertainty linked to the war in the Middle East, rising costs and weaker consumer demand.
This story does not have two clearly opposing sides.
The Bank of England raised its base rate from 3.75% to 4%, the first increase in three years.
The Guardian published Lombardelli’s warning about the effects of weak hiring on young people.
Lombardelli was expected to outline concerns about a slowdown in labour market dynamism in a speech in London.
The Bank was due to consider interest rates at its next policy meeting, which Lombardelli said could bring another increase.
- UK unemployment
- 4.7% this year
- Youth unemployment
- Highest level outside the Covid pandemic since 2015
- Bank of England base rate
- Raised from 3.75% to 4%
- Interest rate outlook
- A quarter-point rise could be warranted as early as December
- Young people not in education, employment or training
- Almost a million
What people are saying
What you see is the cost falling on young people, so you can see this rapid rise in the number of young people who are struggling to find jobs
It’s what I call a low-gear economy. So a labour market where you’re seeing a real fall-off in hiring. But actually, we’re not seeing much in the way of redundancies. What’s going on is this kind of low hire, low fire dynamic
Every meeting is live for us. December is, you know, it’s certainly plausible. What’s the market pricing at the moment? It’s about 50/50 for December
If firms are not hiring, obviously, by definition, that means people that are new to the labour market are hurt by that