A report from the British Chambers of Commerce (BCC) warns that nearly 20% of young workers in the UK may be replaced by AI robots next year, exacerbating youth unemployment. The unemployment rate among young people is projected to rise to 17.8% by mid-2027, up from 16.9% this year. Factors contributing to this increase include the adoption of AI tools for tasks traditionally performed by entry-level workers and rising payroll taxes. David Bharier from the BCC emphasized the need for reforms to prevent a 'lost generation' of workers, highlighting that while the UK economy is not in recession, it remains trapped in a cycle of interrupted recovery. The report also forecasts total unemployment to reach 5.5% next year and discusses the impact of the Middle East conflict on business investment, which is expected to decline by 2.2% this year. Sir Alan Milburn's government-commissioned review calls for an overhaul of the education and welfare systems to avert a youth unemployment crisis that could see numbers soar to 1.25 million by the early 2030s.