Debt management could be needed to soften deep impact of recession
Debt management could be needed to soften deep impact of recession
Tuesday 26th January 2010
Some 1.3 million people were made redundant during the recession, according to the latest Chartered Institute for Personnel and Development's (CIPD) Work Audit.
This was double the net fall in employment and comparable to 4.4 per cent of people in work before the downturn, the report states.
The average pay penalty was found to be 28 per cent, and two-thirds of people who were made redundant and subsequently found work were paid less in their new job.
What's more, there were 6.2 million new claims for the Jobseeker's Allowance between April 2008 and November 2009 - painting a somewhat dismal picture for those trying to find permanent jobs.
CIPD chief economic adviser Dr John Philpott said although the scale of job loss in the recession is less than originally feared, the direct experience of redundancy and subsequent periods of unemployment have been extensive.
The latest Office for National Statistics (ONS) figures reveal that unemployment levels fell by 7,000 over the last quarter to reach 2.46 million.
It is the first quarterly fall in the number of unemployed since the three months to May 2008.
Dr Philpott said: "Given that redundancy also affects the families, friends and former colleagues of those made redundant, the full experience of the jobs recession has been wider still.
"This is likely to have a much greater impact on perceptions of job security and consumer confidence during the recovery than the simple 'unemployment situation is better than feared' story of the moment would suggest."
More UK consumers are committing to debt management plans as personal finance concerns mount in the current economic climate, according to the latest Nielsen-British Retail Consortium consumer confidence survey.
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