Young people in UK hit by ‘low-gear economy’, warns Bank of England deputy

Exclusive: Iran war has fuelled energy price rise and clouded outlook, driving up unemployment, says Clare Lombardelli

Young people in Britain are bearing the brunt of a “low-gear economy” as employers hold back from hiring amid the fallout from the war in the Middle East, a deputy governor of the Bank of England has warned.

Clare Lombardelli, the Bank’s deputy governor for monetary policy, said the unfolding conflict, which has triggered a surge in energy prices and clouded the outlook for the economy, was contributing to an increase in youth unemployment.