Debt may worsen after unemployment jump

The rate of unemployment in the UK has risen, something that could lead to an increase in debt management issues for some.

Figures released today (September 16th) by the Office for National Statistics have shown that the total number of people out of work was up to 2.47 million in July, a rise of 210,000 over the three months to that date.

The total of people claiming Jobseekers Allowance in August was 1.61 million, up 24,400 from July.

Such a situation could intensify issues of debt management for those affected, either through direct loss of jobs or through a fall in income for those whose customers have become unemployed.

The jobless situation could get even worse but this is likely to have been avoided due to the government’s decision not to make spending cuts just yet, Trades Union Congress (TUC) general secretary Brendan Barber has suggested.

He made the comments after hearing prime minister Gordon Brown’s address to the TUC annual conference, in which he admitted that some public spending cuts will have to be made.

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