Economy experts have warned of a recession as the turbulent economy slows further.
While a major recession is unlikely, the British Chamber of Commerce revealed that Britain faces a rocky few months.
UK unemployment is predicted to rise by between 250,000 and 300,000 in the next 18 months to two years.
That could take the jobless total to more than two million for the first time since Labour came to power in 1997.
Prospects could worsen if interest rates are not cut soon, the BCC said.