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The hidden cost of the unemployed

Page last updated Tuesday, 23 June 2009

007-joblessFigures released by the Office of National Statistics, ONS, show that unemployment rose to 2.261 million in the three months to April, the highest since November 1996. 

The number of people claiming unemployment benefit rose by 39,000 in May, less than the 60,000 which had been forecast by analysts. 

The number of people in work is now 29.11 million a reduction of 271,000 over the three months which is the biggest quarterly drop since comparable records began in 1971. 

This means that the unemployment rate in the UK stands at 7.2%, the highest since July 1997, but still less than what some economists expected.  

Debtwizard comment 

With 3 million people expected to be unemployed by the end of the year there is real concern about how these individuals will motivate themselves into getting back to work. 

Unfortunately some will drop into depression or turn to alcohol, gambling or even crime in an attempt to solve their debt problems. 

From experience many will not address their debt issues for well over a year from when they first arose and for some they will just free-fall further into debt. 

Creditors also need to be more understanding and sympathetic towards borrowers who find themselves suddenly out of work. 

Debt can consume your life. These people need support from their families, friends and creditors both emotionally and financially. They also need to have clear goals on how they can manage their debts. The best way to start is to draw up a budget form, prioritise which creditors need to be paid first such as mortgage and rent, followed by utilities.

It is a clear fact that once you get control of your debts you get back control of your life.  

 

 


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Johnathan James (Guest) Friday, 19 June 2009

This is exactly the problem. Not only do you have pay the unemployed benefits, they're also not paying income tax and they're not spending so there's no VAT either.

When they fall in to depression and start watching Trisha and get fat then the NHS has to pick up the bill for all their healthcare - it all becomes a triple whammy.

Unemployed people need real help, and whilst they're unemployed they need to have things to keep them busy.

Johnathan James (Guest) Friday, 19 June 2009

The reason our unemployment has historically been so low is because they all now work in the public sector filling in forms.


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Mike Thomas aka the 'DebtWizard' helps individuals overcome their debt problems.

Mike writes all the articles found on this site.