IVA need may rise as part-time workforce rises

The latest official unemployment figures have shown more people are in jobs and fewer are signing on – but the underlying data reveals a record number are only working part time, which could be bad news for those in debt.

Office for National Statistics (ONS) data revealed the employment rate in the three months to September was up 0.3 per cent to 70.8 per cent, while unemployment dipped 0.1 per cent to 7.7 per cent.

However, the bad news is that the increase in employment came as a result of 67,000 more people working part time – taking the total to 1.15 million – while 62,000 fewer were in full time jobs.

The tally of part time workers is the highest since this began to be measured by the ONS in 1992.

As a result, some of those in work may have reduced incomes and need an IVA to help bring down their debt repayments.

Such a measure could help ensure individuals become debt free five years down the line.

Responding to the details of the figures, the Trades Union Congress expressed concern that nearly 250,000 people have been claiming jobseekers’ allowance for over a year, arguing government spending cuts will make the situation worse.

However, a more upbeat response to the news came from Royal London Asset Management analyst Ian Kernohan.

He said: “Despite some alarmist predictions that unemployment would soar during the recession and be well over 4 million by now, things have not turned out to be quite so disastrous.”

Mr Kernohan noted the private sector is already producing extra jobs and emphasised that public sector job cuts will not all happen at once.

By James Francis