Unemployment may see greater debt management challenge for many

An increasing number of people my need debt management arrangements to deal with their what they owe as new figures have revealed a fresh rise in unemployment, with young people and women suffering most.

The three months to December 2010 saw a 0.1 per cent rise in unemployment to 7.9 per cent of the working population, a share that translates into an increase of 44,000 and a headline figure of 2.49 million out of work.

Furthermore, the overall number of people aged 16-64 fell in the quarter by 68,000 to 29.12 million.

And one group particularly hard hit has been the young, with the 16-24 age group now suffering a 20.5 per cent jobless rate, the highest proportion for this age range since comparable records began in 1992.

Jobseeker’s Allowance claims were up 2,400 between December and January and these figures show women are another group disproportionately affected by the employment situation, with seven successive months in which female claims have risen, in contrast with 12 months in a row in which less men have sought the benefit.

For those recently put out of work, all this may mean increased problems in paying off what they owe, which is where a debt management plan may come in.

One area of good news that may boost some is that more of those who are in employment are full-timers, with a quarterly rise of 66,000 spread equally between men and women, while there was a 62,000 drop in part-time employees.

However, the net fall in the latter figure was made up entirely by reductions in the female part-time workforce.

Reflecting on the news, group board director for Legal & General’s risk business John Pollock said public spending cuts mean the rate of joblessness is likely to go on rising.