Rise in joblessness sparks fears of debt crisis
Rise in joblessness sparks fears of debt crisis
Thursday 12th June 2008
Data from the Office of National Statistics shows that the number of people out of work rose by 38,000 between February and April.
This is the largest jump since July 2006 - and brings the total jobless figure to 1.64 million.
The manufacturing sector was one of the areas hardest hit by the fall, with 10,000 jobs cut.
Vicky Redwood, UK economist at Capital Economics, said the figures suggest that conditions are set to become tougher for households already struggling in the current economic conditions.
She said: "The recent rises [in unemployment figures] are likely to be just the tip of the iceberg.
'The risk of a vicious circle of falling house prices and rising unemployment is growing by the day."
Growing pressure on household finances is believed to have been the principal factor behind a 4.3 per cent rise in the number of Britons taking out individual voluntary arrangements (IVAs) during the first three months of this year.
Are you considering an IVA? We can help.
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