Unemployment rises again but this time the increase is the smallest since May 2008 according to the Office for National Statistics.
Those out of work increased by 30,000 to 2.46 million, in the three months to September, with the jobless rate now standing at 7.8%.
Meanwhile the number of people claiming unemployment benefit in October grew by 12,900 to 1.64 million, the smallest increase for 18 months.
The number of people unemployed for up to six months fell by 99,000 on the quarter to reach 1.31 million.
There has been an increase of 71,000 for those who have been out of work for more than a year who now number 618,000, the highest for 12 years.
The unemployment rate for 18 to 24 year olds increased by 0.7 percentage points on the quarter to reach 18.0 per cent, the highest figure since records for this series began in 1992.
The number of people claiming Jobseeker’s Allowance (the claimant count) in October 2009 increased by 12,900 on the month to reach 1.64 million, the highest number of claimants since April 1997. This is the smallest monthly increase in the claimant count since April 2008.
Vacancies
There were 428,000 job vacancies in the three months to October. This is the lowest figure since comparable records began in 2001.
Debtwizard comment
It is now looks like we will not see the 3 million mark of unemployed by the end of the year, as predicted by many analysts, but the real concern however, is how these individuals will motivate themselves into getting back to work.
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. Some will unfortunately 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 some will not match or improve on their previous salaries and as a result thousands will free-fall into debt. From this a segment 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 both the insolvency and house repossession figures.
Creditors also need to be more understanding and sympathetic towards borrowers who find themselves suddenly out of work and should 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 regain control of your life.
