Unemployment increase puts millions at risk of debt

UK unemployment figures have risen by 118,000 in the three months up to November 2011. The total jobless figure now stands at 2.685 million.
The rate of unemployment has also risen from 8.3% to 8.4%, official figures from the Office for National Statistics revealed. This is the highest rate since 1996.

TUC General Secretary Brendan Barber commented on the unemployment rate; ‘These figures are even worse than the bleak economic forecasts predicted, with new records achieved for youth and female unemployment.î

ìThe fear is now that mass joblessness becomes a permanent scar on the UK – with unemployment rising by 1,300 a day towards the end of last year.î

The number of people claiming Jobseekerís Allowance (JSA) has also increased to 1.6 million for December. This move was only marginal though as 1,200 joined the dole queue, this was much lower than initially expected.

The number of people claiming JSA for less than 6 months also fell, by a figure of 16,500 in December.

Youth unemployment is a massive problem for the country and now a massive 22.3% of 16 -24 year olds are out of work. 1.043 million young people became unemployed in the three months up to November.

The number of people in full time employment has fallen, yet the number in part time employment increased.

Itís not all doom and gloom though, the number of people in work increased by 18,000 to 29.1 million over the same period. However, as public sector job cuts deepen and retailers remove all their temporary Christmas workers, the number of job losses could actually increase.

Debt problems

If you are concerned about your personal finances as a result of unemployment, you could seek financial help. Falling into debt is a serious problem for many and unemployment will only put further strain on already financially stretched Brits.

Compare debt management solutions with Money Expert.

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