Unemployment set to hit 5.3% this year amid ‘worrying’ rise in young jobless

The OBR has also downgraded the UK’s growth prospects for the year. Photograph: Andy Rain/EPA

Unemployment in the UK is set to peak this year at a higher rate than previously estimated, with a “worrying” increase in young people being out of work, the government’s official forecaster has said.

The Office for Budget Responsibility (OBR) said unemployment will peak at 5.3% this year, up from its previous forecast in November of 4.9%.