Debt help: Further rise in unemployment expected

03/02/2010

After the recent lull in unemployment figures, more people are expected to be without jobs in 2011.

This is according to the latest economic report from the National Institute of Economic and Social Research (NIESR).

The report notes that "unemployment has risen by less than seemed likely given the severity of the downturn" but warns that once wages and average hours are taken into account, employment has actually declined.

On top of a rise in unemployment, the NIESR highlighted the rising cost of living; a problem which could push people further into debt.

Consumer items could become less affordable due to last month's VAT increase from 15 per cent back up to 17.5 per cent and the approaching rise in consumer inflation to 3.5 per cent.

A peak of 2.9 million people in unemployment is expected in the third quarter of 2011.

Posted by Fiona Smith

Tags; Job loss,

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