March 8, 2026

OBR warns AI could raise UK unemployment without boosting growth

Adam Posen: Inflation expected to hit 4% by year-end, youth unemployment rising due to post-COVID mismatches, and tariffs’ delayed impact on economic pressures | Odd Lots

The Office for Budget Responsibility (OBR) has warned that the rise of artificial intelligence (AI) in the UK could lead to increased unemployment without a corresponding boost in economic growth. This statement comes as the UK government focuses on exploring AI strategies to address potential disruptions in the labor market. Recent analyses suggest that while AI has the potential to enhance productivity, it may also displace jobs at a rate that outpaces these gains, raising concerns over its impact on the economy.

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