It’s been quite the week from a geo-political perspective – what is unfolding in the Middle East is having a very real impact on energy prices, inflation and economic confidence. Here are some highlights from the week that was.

The ONS reports this week that the number of vacancies in the economy up to the end of February was down 6,000 to 721,000, compared to the previous quarter. 

Similarly, the UK unemployment rate was reported at 5.2%, up slightly on the previous quarter and 0.8% higher on a year-by-year comparison.

Several news sources produced worrying conclusions as to what the strife in the Middle East would mean to the domestic economy. Goldman Sachs forecasts that UK growth will fall from 1.5% this year down to 0.6%. Even more brutal were conclusions from Oxford Economics, which felt UK growth would fall to 0.4%, as a result of rising energy costs and an implied increase in interest rates. 

Better news as regards inflation, with CPI at 3% in the year ending January 2026, compared to 3.4% for the 12 months concluding December 2025. 

The Government is responding to the challenging job market, and particularly that relating to younger people by investing some £1bn creating 200,000 jobs in a major overhaul of apprenticeships. This is in response to the number of available apprenticeships falling 40% over the last decade.

To an extent, all economic and labour market bets are off – markets across the world are looking at what is playing out across the Middle East with fear and trepidation. Even an immediate cessation of military action will create energy-related implications for months to come. Be in no doubt, that these are hugely concerning times.