NIESR's Chadha Says Expect U.K. Unemployment to Reach 10%

The transcript discusses the economic challenges faced by industries, including delays in rent payments and the availability of loans. It highlights the need for a gradual reallocation of labor and resources due to a permanent shift in the economy. The discussion also covers unemployment projections, with expectations of a 10% unemployment rate due to low demand and lack of confidence in the future. Firms are likely to defer investments, and households may continue saving, leading to reduced demand and potential layoffs.

What are the implications of firms lacking confidence in the future?

In what ways might households respond to uncertain employment prospects?