Unemployment rose by to its highest level since 1995 according to the Office for National Statistics.
Unemployment increased by 220,000 to 2.44 million, in the three months to June, this is equivalent to around 3,000 losing their jobs every working day for the past three months. The jobless rate which now stands at 7.8%.
Meanwhile the number of people claiming unemployment benefit in July grew by 24,900 from June to 1.58 million.
The younger generation has been particularly hard hit with those in the age group 18 - 24 claiming for over 6 months (up 2,100 from the previous month) to 77,800.
There has also been an increase of 46,000 for those who have been out of work for more than a year who now number 528,000, the highest for 11 years.
Vacancies
There were 427,000 job vacancies in the three months to July 2009, down 26,000 from the
previous three months and down 203,000 compared with the previous year. This is the
lowest figure since comparable records began in 2001.
Debtwizard comment
With many analysts predicting unemployment to reach around the 3 million mark by the end of the year it is a 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.
Many will eventually find new jobs but they will not match or improve on their previous salaries and as a result thousands will free-fall into debt, some will end up bankrupt or propose an Individual Voluntary Arrangement, IVA.
There will also be others who will not be able to pay their mortgages and who will eventually lose their home. The high unemployment figures will have an impact on the both the insolvency and house repossession figures.
From experience many will not address their debt issues for well over a year from when they first arose and will often ignore the fact that they have a serious debt problem growing everyday.
Creditors also need to be more understanding and sympathetic towards borrowers who find themselves suddenly out of work and take note when someone is a ‘can’t payer’ instead of a ‘won’t payer’.
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.
