Unemployment blackspots to cause more debt?

17 June 2011

Debt problems may be worse in areas with high unemployment and a study has shown some of these are offering little hope of finding new work.

A Trades Union Congress (TUC) survey of local government districts has found there were 31.8 jobseeker's allowance claimants per vacancy in Inverclyde, with West Dunbartonshire second worst off with a ratio of 29.5.

The nine areas with the least favourable ratio were all in Scotland or London, with Middlesbrough tenth-worst.

TUC general secretary Brendan Barber warned a "twin-track" jobs market may exist, where falling unemployment is concentrated more in some regions, while others continue to have severe problems.

He said it is important there is more investment in such areas to tackle this issue.

In an interview with the Guardian, director at The Money Shop Caroline Watson said those with debts to start with could find this makes it harder to cope with unemployment as their interest payments make it harder to find spare cash to save.

By Amy White

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