Economy
Young people in UK hit by ‘low-gear economy’, warns Bank of England deputy
Publication: Economics | The Guardian
Author: Richard Partington Senior economics correspondent
Source published: 10/11/2026, 06:00:30 UTC
Briefing created: 10/11/2026, 06:31:48 UTC
Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 10/11/2026, 06:05:25 UTC.
Briefings
A Bank of England deputy governor warns that the Middle East war is driving a 'low-gear economy' in Britain, causing employers to delay hiring and increasing youth unemployment. Clare Lombardelli attributes this to rising energy costs and a clouded economic outlook. The evidence indicates the conflict has triggered a surge in energy prices, which are contributing to the broader economic slowdown affecting young people.
Key points
- Clare Lombardelli, deputy governor for monetary policy at the Bank of England, stated that the Middle East war is fueling a 'low-gear economy' in Britain.
- Employers are holding back from hiring due to the economic fallout from the conflict, which has increased energy prices and clouded the outlook for the economy.
Context
The Bank of England's deputy governor, Clare Lombardelli, identified the Middle East war as a primary driver for a 'low-gear economy' in Britain. This finding is significant as it links regional conflict directly to domestic youth unemployment and hiring delays, highlighting the transmission of global instability to the UK labor market.
Limitations
The evidence is limited to a single statement from Clare Lombardelli regarding the Middle East war's impact on youth unemployment. It does not provide specific data on the magnitude of energy price surges, exact unemployment figures, or a timeline for when these effects began to materialize.
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