IVA help need may rise as jobs market ‘slowing down’

The level of IVA help needed in the UK may rise as fewer people are able to get into work or obtain better-paid jobs to help pay off spiralling debts.

Evidence that this situation may be emerging has come from recent jobs data suggesting there has been a slowdown in the growth of UK employment.

The latest figures on the subject were produced today (July 18th) by the Bank of Scotland, revealing Scottish recruitment levels are still rising, but not as fast as in recent months.

Its Labour Market Barometer reading was still a positive 55.2 in June, but this was down from 56.5 in May.

Chief economist at the bank Donald MacRae said: “The Scottish labour market improved in June, albeit at a slower rate than in previous months, providing further evidence of a slowing of the economy in quarter two of this year.”

He added: “The rates of increase in vacancies available to both permanent and temporary workers were the lowest in five and nine months respectively.”

The joblessness rate is higher in the UK overall than in Scotland, the bank’s figures noted.

With this being the case, some people in England and Wales could benefit from debt help or even in individual arrangements, as this may mean it is harder for many to find the job they need to help earn their way out of debt.

The most recent national data was the Office for National Statistics quarterly bulletin on July 11th, which showed that in the three months to May the number out of work dropped by 26,000 to 2.45 million.

However, this was down on the 88,000 dip in the three months to April, suggesting a wider slowdown in job creation.