Unemployment rise could lead to more debt help

17/12/2009

Unemployment increased once more over the three months to September 2009, figures from the Office for National Statistics (ONS) have revealed.

According to the data, the jobless total rose by 21,000 to 2.49 million, the highest for 14 years.

However, there was better news contained in separate figures for November 2009, during which the number of claims for unemployment fell for the first time since February 2008.

Increased joblessness leads to lower personal incomes, which in turn leads to more demand for debt solutions among the public as a whole.

The impact of unemployment on personal finances was highlighted by the release of a Bank of England report earlier this week, showing that half of those who had lost their jobs in the past year suffered a monthly decline in discretionary spending of £100 or more.

Responding to the news, Trades Union Congress general secretary Brendan Barber said: "It would be madness to cut the resources dedicated to helping the unemployed, as some are suggesting."

Tags; Job loss,

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