Business

Youth Unemployment to Hit 17.8% by 2027 as AI and Tax Rises Bite, BCC Warns

Published

3 hours ago

2 June 2026

Youth Unemployment to Hit 17.8% by 2027 as AI and Tax Rises Bite, BCC Warns

Nearly one in five young Britons could be out of work within little more than a year, as higher payroll taxes, a sharply rising minimum wage and the relentless march of artificial intelligence combine to shut school and university leavers out of the jobs market.

In a sobering update to its quarterly economic outlook, the British Chambers of Commerce (BCC), one of the country’s most influential business lobby groups, forecasts that the unemployment rate among 16 to 24-year-olds will climb to 17.8 per cent in 2027, up from an already uncomfortable 16.9 per cent this year. The deterioration would push youth joblessness to its highest level in well over a decade and lend fresh weight to warnings of a “lost generation” of workers.

The BCC singled out the rapid take-up of AI tools by employers, typically to handle the kind of routine, entry-level tasks that have traditionally given young people a foot on the ladder, as a leading culprit. A separate Business Matters investigation has shown how the big four accountancy firms are already slashing graduate hiring as AI replaces entry-level roles, a pattern now spreading rapidly across financial services, legal, marketing and back-office functions.

Government policy is doing little to soften the blow. The BCC believes ministers’ decisions to lift employer national insurance contributions and push through one of the largest minimum wage increases on record have made younger, less experienced staff disproportionately expensive to hire, a point business owners and payroll specialists have made repeatedly since the Treasury signalled the increased cost burden facing employers.

The findings reinforce a warning issued last week by Alan Milburn, the former Labour cabinet minister, who told ministers that without urgent intervention as many as 1.25 million young people could be classed as not in employment, education or training (NEET) by the early 2030s. Business Matters has previously reported that the NEET cohort is already nudging one million, with Office for National Statistics figures showing the share of economically inactive young people at its highest level since records began in 1992.

David Bharier, deputy director of economics and insights at the BCC, said the picture pointed to a structural, not merely cyclical, problem. “The UK is not in recession, but the economy remains trapped in a cycle where each recovery is interrupted before gaining traction, and firms go back on the defensive,” he said. “With youth unemployment approaching 18 per cent by mid-2027, the UK risks weakening the skills pipeline it needs for the next economy.”

Overall joblessness is forecast to reach 5.5 per cent next year, up from the current 5 per cent. Gross domestic product, the BCC said, will grow by just 0.9 per cent this year, 1 per cent in 2027 and 1.3 per cent in 2028, with the services sector, which now accounts for around 80 per cent of national output, doing most of the heavy lifting.

Inflation, meanwhile, is being given an unwelcome boost by surging global energy prices linked to the war in the Middle East. The BCC now sees the consumer prices index peaking at 3.8 per cent by the end of 2026, well above its previous forecast of 2.7 per cent, before easing back to 2.3 per cent next year and returning to the Bank of England’s 2 per cent target in 2028. The latest ONS data put inflation at 2.8 per cent in April, down from 3.3 per cent in March.

Faced with that mix of weak growth, rising joblessness and stubborn price pressures, the BCC expects the Bank’s Monetary Policy Committee to hold the base rate at 3.75 per cent for the remainder of the year, with its next decision due on 18 June. At its April meeting the Bank said it “stands ready to act” if inflation proves sticky, but officials are clearly mindful of the damage a further squeeze would do to a fragile labour market.

“Much hinges on the course of the Middle East conflict,” Bharier said. “Inflation is likely to edge towards 4 per cent this year, but the Bank of England faces a different scenario compared with the 2022 crisis. Weaker growth, rising unemployment and already restrictive monetary policy mean the Bank could seek to manage this without raising the interest rate and risking further damage.”

For SMEs, long the proving ground for first jobs, apprenticeships and on-the-job training, the cocktail of higher employment costs, geopolitical uncertainty and falling investment is becoming hard to swallow. The BCC expects business investment to fall by 2.2 per cent this year and a further 0.1 per cent in 2027 before recovering by 2.3 per cent in 2028. Without a meaningful shift in policy, the danger is that today’s hiring freeze becomes tomorrow’s lost decade for Britain’s young workers.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

Business

Clothing brand Attacus Cycling gets NPIF II backing to grow

Published

32 seconds ago

2 June 2026

NewsAdmin

The brand was acquired last year by Neil Stephenson-backed Mira Marketing

NEL Fund Managers is based in Newcastle.

From left: Susan Snowdon, investment executive at NEL Fund Managers; Neil Stephenson and Stuart Bramley of Attacus.(Image: NEL Fund Managers)

Cycling clothing brand Attacus has received funding it says will help it to move faster in delivering new products and breaking into new markets.

The Newcastle-based firm, which is owned by Mira Marketing, has secured the backing of NPIF II – NEL Smaller Loans, which is managed by NEL Fund Manager. It comes nearly a year after Attacus was acquired by the Ouseburn-based marketing agency having been a client.

NEL has declined to make public the size of the loan, though sums from that fund are typically between £25,000 to £100,000. It says the funding will support the next stage of growth for Attacus, which focuses on performance, comfort and modern design – taking cues Italian manufacturing.

The funding will be used to expand the brand’s product range, increase stock depth across key lines, and accelerate marketing activity and brand development. It will also be used to boost ecommerce infrastructure, creative production, and international growth, particularly in key cycling markets across Europe and beyond.

Stuart Bramley, founder of Mira Marketing and owner of Attacus, said: “Working with NEL has been a really positive experience. They understand the ambition behind Attacus and have backed that with both investment and support that goes beyond just capital.

“This partnership gives us the confidence to move faster and make better long-term decisions – whether that’s in product development, brand positioning, or expanding into new markets. It’s a key step in building Attacus into a globally recognised cycling brand.”

Susan Snowdon, investment executive at NEL Fund Managers, added: “Neil Stephenson approached me during a Sunderland Platform event to discuss plans he and Stuart had after acquiring the brand, as well as the potential need for investment. With their combined expertise and vision, it was an exciting opportunity to be involved. I wish them all the best as they pursue their growth ambitions.”

Sarah Newbould, senior investment manager at the British Business Bank said: “Through the Northern Powerhouse Investment Fund II, we are committed to improving access to finance for innovative companies with strong growth potential and supporting ambitious businesses across the North to scale sustainably is central to our purpose. This investment will help Attacus build on its foundations and accelerate it next phase of development, both in the UK and internationally.”

The £660m Northern Powerhouse Investment Fund II is intended to drive economic growth by supporting businesses across the entire North of England. It provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

Business

Microsoft says new quantum chip 1,000 times more reliable than predecessor

Published

9 minutes ago

2 June 2026

NewsAdmin

Microsoft says new quantum chip 1,000 times more reliable than predecessor

The tech giant predicts it will have a quantum computer that can solve commercially useful problems by the end of the decade.

Business

Ulta Beauty (ULTA) Q1 earnings 2026

Published

15 minutes ago

2 June 2026

NewsAdmin

An Ulta Beauty store in Colma, California, US, on Wednesday, Dec. 3, 2025.

David Paul Morris | Bloomberg | Getty Images

Ulta Beauty on Tuesday reported quarterly results that beat on the top and bottom lines and hiked its earnings outlook as the retailer saw a strong start to its fiscal year.

Shares of the company rose as much as 7% in extended trading.

Here’s how the company performed in its fiscal first quarter compared with what Wall Street was expecting, according to a survey of analysts by LSEG:

Earnings per share: $7.74 vs. $6.86 expected
Revenue: $3.16 billion vs. $3.10 billion expected

For the three-month period ended May 2, Ulta saw net sales increase roughly 11% compared to the year-ago period. It reported comparable sales rose 5.3%, compared to StreetAccount estimates of up 4.6%.

Ulta reaffirmed its full-year same-store sales and revenue projections, but raised its full-year EPS guidance to between $28.36 and $28.80. Its previous outlook was earnings per share between $28.05 and $28.55.

“Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories,” CEO Kecia Steelman said in a statement. “Our results demonstrate the strengths of our model, focused execution of our talented associates and the effectiveness of our strategy in an uncertain macroeconomic landscape.”

The earnings come as consumer confidence takes a dip amid soaring gas prices and rising inflation, leading to a pullback in discretionary spending.

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Business

Fortinet, Inc. (FTNT) Presents at Bank of America 2026 Global Technology Conference Transcript

Published

28 minutes ago

2 June 2026

NewsAdmin

OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Fortinet, Inc. (FTNT) Bank of America 2026 Global Technology Conference June 2, 2026 1:40 PM EDT

Company Participants

Ken Xie – Co-Founder, Chairman & CEO
John Whittle – Chief Operating Officer

Conference Call Participants

Tal Liani – BofA Securities, Research Division

Presentation

Tal Liani
BofA Securities, Research Division

[Audio Gap] cybersecurity again. It’s very easy with Bank of America. Whenever someone leaves, they ask me to cover it. So I cover software and data centers and cybersecurity and networking. So one-man show, research.

But I’m very pleased. I know this space extremely well. I’ve been covering it for 15 years, almost 20 years. And I’m very pleased to host Ken Xie, CEO; and John Whittle, Chief Operating Officer. And we are going to speak about the fundamentals.

I want to talk about the quarter, but very little because I really want to focus on the fundamentals and what’s coming for the next few years. With this introduction, I’ll start with the quarter, Ken.

Question-and-Answer Session

Tal Liani
BofA Securities, Research Division

The quarter was unique because the numbers were very strong. The billing growth was 31%. Secure networking billing was 32% up. Unified SASE was up 31%. And the question is, what drives the growth, both of the secure networking as well as the new areas?

Ken Xie
Co-Founder, Chairman & CEO

Like I mentioned in the earnings, we see the AI actually accelerate what we call the convergence of networking and network security, especially within enterprise because AI definitely drive a lot of additional traffic whether AI agent or using some AI for certain application. Most enterprise still today, they only have this they call the perimeter security. Internally, they don’t deploy much network security, whether do the internal segmentation or protect some key server or certain departments, some data there. So that’s where we see the strongest

Business

Form 6K LEIFRAS Co. For: 2 June

Published

37 minutes ago

2 June 2026

NewsAdmin

Form 6K LEIFRAS Co. For: 2 June

Business

Wolfspeed Stock Jumps 14% as AI Data Center Push Gains Momentum in Silicon Valley

Published

43 minutes ago

2 June 2026

NewsAdmin

Wolfspeed Stock Surges 23% on AI Infrastructure Hype and Short

DURHAM, N.C. — Shares of Wolfspeed Inc. surged more than 13% in morning trading Tuesday, climbing to $60.14 as investors cheered the silicon carbide specialist’s aggressive expansion into artificial intelligence data center power solutions following its announcement of a dedicated team in Silicon Valley.

The rally came on heavy volume, extending recent volatility in the stock that has seen dramatic swings amid the company’s post-restructuring recovery and growing ties to high-growth AI infrastructure markets. As of 11:28 a.m. EDT, Wolfspeed shares had risen $7.18, or 13.57%, on the New York Stock Exchange.

The move builds directly on Monday’s news that Wolfspeed established a new data center solutions team and regional office in Santa Clara, California. The initiative aims to strengthen collaboration with hyperscalers and original design manufacturers developing next-generation power architectures for AI clusters.

Strategic Expansion into AI Power

Wolfspeed appointed industry veterans Ganesh Srinivasan as senior vice president to lead the data center solutions team and Yogesh Ramadass as vice president of power systems solutions and fellow. Both bring deep experience from Texas Instruments and other major semiconductor firms.

CEO Robert Feurle highlighted the urgency of the shift. “The sheer scale of AI computing demands a fundamental rewrite of data center power architecture. Moving to higher voltages is no longer optional — it’s a necessity,” he said in the announcement.

Wolfspeed’s silicon carbide technology enables more efficient, compact power conversion critical for managing the massive energy demands of modern AI training and inference systems. The company positions its high-voltage SiC solutions as key to reducing energy loss in hyperscale facilities.

Post-Restructuring Momentum

The latest initiative comes months after Wolfspeed completed a significant financial restructuring, including Chapter 11 proceedings that reduced debt and strengthened its balance sheet. The company has refocused on core silicon carbide growth areas, including automotive, industrial, energy and now data centers.

Fiscal third-quarter results reported in May showed revenue of approximately $150 million, in line with guidance, though the company continued posting losses amid capacity ramp investments. Management projected fourth-quarter revenue between $140 million and $160 million.

Despite ongoing negative gross margins due to underutilized manufacturing footprint, investors appear to be betting on long-term potential in AI-related applications. Wolfspeed’s stock has shown strong year-to-date performance, though it remains well below peaks reached in prior years.

Market Context and Analyst Views

The surge reflects broader enthusiasm for semiconductor companies tied to AI infrastructure. Silicon carbide demand is rising as data centers seek higher efficiency to handle increasing power densities from advanced GPUs and accelerators.

Analysts have noted the company’s strategic repositioning. Some highlighted its fabs and specialized technology as difficult to replicate, contributing to optimistic commentary that has fueled recent buying interest. However, risks remain around execution, competition and the pace of AI capital spending.

Wolfspeed’s 52-week range illustrates the stock’s volatility, with shares trading significantly higher than earlier lows but facing pressure from macroeconomic uncertainties and sector rotations. Short interest has fluctuated but remains a factor in price swings.

Operational and Capacity Developments

The company continues expanding production capacity for silicon carbide wafers and devices. Recent product introductions, including new 3.3 kV power modules, target high-power applications in data centers and industrial markets. These launches align with the new data center team’s focus.

Leadership changes, including the Asia-Pacific regional president appointment effective June 1, further support global commercial execution alongside the U.S. data center push.

Challenges and Outlook

Wolfspeed operates in a capital-intensive industry where scaling production while maintaining quality and margins presents ongoing hurdles. The company has invested heavily in facilities, contributing to current losses but positioning it for potential volume growth as customer qualifications advance.

Broader semiconductor supply chain dynamics, including raw material costs and geopolitical factors, could influence results. Management has emphasized disciplined capital allocation following restructuring.

For fiscal 2026, the focus remains on improving utilization rates and securing design wins in high-voltage applications. The data center vertical offers a promising new revenue stream, though meaningful contributions may take several quarters to materialize.

Investor Sentiment and Broader Implications

Tuesday’s trading activity suggests renewed confidence in Wolfspeed’s AI adjacency story. The stock’s performance stands out against a mixed session for many technology names, highlighting the market’s selective appetite for thematic growth plays.

Longer term, success will depend on converting the Silicon Valley presence and new hires into tangible customer agreements and revenue. Hyperscalers’ aggressive data center buildouts provide a supportive backdrop, but competition from established power semiconductor players remains intense.

As the trading day continues, attention will likely stay on any follow-through momentum and potential analyst commentary. Wolfspeed’s trajectory reflects the evolving semiconductor landscape, where specialization in wide-bandgap materials like silicon carbide gains prominence amid the AI revolution.

Market participants will monitor upcoming updates on design wins, capacity ramps and fiscal fourth-quarter results for further signals on execution. With its strengthened balance sheet and targeted expansion, Wolfspeed aims to capitalize on one of the technology sector’s most dynamic growth areas.