Income worries to spur demand for debt advice

29/12/2009

An increasing number of Britons could seek out debt advice as unemployment rates are expected to peak in 2010.

The Chartered Institute of Personnel and Development (CIPD) predicted that the number of people out of work will hit 2.8 million in the summer.

According to the organisation, there have been fewer redundancies in the third quarter of 2009 and this trend is likely to continue into the early months of 2010.

However, a wave of post-Christmas job cuts will result in a spike in the number of Britons out of work.

Dr John Philpott, economic adviser to the CIPD, warned of additional income worries for several UK workers.

"Given the likelihood of a rise in price inflation to at least three per cent in 2010 on the RPI measure, our forecast implies a squeeze on real pay next year," he explained.

"This could be difficult to deliver following a recession during which many private sector employees have experienced pay freezes or pay cuts."

Tags; Job loss,

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