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Unemployment Jump Affects Young And Older People

by Jim ONeil on October 17, 2011

in Personal Finance News

Between June and the end of August, UK unemployment jumped 114,000. At 2.57 million, it is the highest it has been in 17 years. For the seventh month in a row, the number of jobseeker allowance claims increased, reaching 1.6 million. Fears have resurfaced that the UK may be headed for a double-dip recession but the Prime Minister stood strong regarding austerity policies on Wednesday.

The Prime Minister stated that reversing current austerity policies would create a tailspin for the economy, resulting in higher interest rates. HW Fisher & Company insolvency expert Brian Johnson stated that while the unemployment numbers are bad, the omens are much worse. The weak economy and additional public sector reductions could force the country into what he called “another winter of discontent.”

Unemployment rose 0.4 percent in a mere three months and is now 8.1 percent, the highest in 15 years. Youth unemployment now represents 21.3 percent of people age 16 to 24. It increased prior to the economic crisis, a time when the economy was growing. In this new economy, it will be difficult to correct this because businesses lack the money and time to train new graduates.

While university graduates find themselves less employable, older people are facing their own struggles. Part time jobs that helped temper the increase in unemployment in recent years are dwindling. During the last three months, the number of UK jobs declined by 178,000 and 74,000 of these jobs were held by people over age 65.

Women have also been severely affected by the employment situation. Most public sector jobs are held by women and job cuts in this area have been devastating to them. It seems that some younger people, the elderly, and females may soon be in need of loans or other financing tools to tide them over during periods of unemployment.

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