Abacus Daily Debt News

Unemployment rate to rise?

More people may soon be faced with increasing debt problems, as a new report to be released this week is expected to reveal that the unemployment rate in the UK is climbing.

Labour market figures to be published on Wednesday (January 20th) should show that joblessness has reached eight per cent, with the number of Britons out of work in November 2009 being 2.5 million, the Daily Mail reports.

This is an increase of 500,000 in 12 months and Commerzbank economist Peter Dixon noted that it is possible this trend could continue in 2010.

And the executive chairman of consultancy Begbies Traynor Ric Traynor corroborated this view.

"There is every reason to suggest that the insolvency peaks of this recession remain some way off," he said, noting that interest and tax rates are sure to increase.

Meanwhile, a recent study by RSM Tenon predicted that bankruptcy levels could reach 18,000 in the north-west in 2010, with such instances rising by eight per cent in Manchester and 13 per cent in Liverpool, The Business Desk reported.

By Sarah Adie