The figures come on the back of a recent report suggesting increasing numbers of workers are being forced to take pay cuts or ‘downbanding’ of their jobs or face redundancy.
With loss of income the top reason for people to enter a Debt Management Plan, debt solutions specialist and DEMSA member Atlantic Financial Management is warning that while the headline jobless figures look positive, the underlying picture is much more worrying for families across the UK.
The ONS figures have revealed that the number of employees and self-employed people working part-time because they could not find a full-time job increased by 80,000 in the three months to May 2011, on the previous quarter to reach 1.25 million, the highest figure since comparable records began in 1992.
This rise is also echoed in the number of people claiming Jobseeker’s Allowance (JSA) which has risen by 24,500 in June – the highest increase in two years. Redundancies have also risen by 16,000 over the quarter.
Kevin Still, Director for Atlantic said:
“While the overall figures show a reduction in unemployment when you dig below the surface there’s clearly a growing number of people tackling a loss of income either because they can’t find full time work, or because they have had an enforced pay cut or have been ‘downbanded’.
"When you look at this combined with the rising costs of day to day living – utility bills, food costs and fuel for example – the challenge of balancing reduced income against rising outgoings is becoming a real issue for many UK households.
"All too often in situations such as this, we used to find people turning to their credit cards to keep their heads above water which would in turn lead to a debt spiral. Many indebted consumers now recognise the long-term approach and are turning earlier to genuine non-borrowing debt solutions.
“It’s at this point that household need to start prioritising debts and a Debt Management Plan from a DEMSA accredited debt solutions provider such as Atlantic can prove invaluable in this regard.
"A new schedule of payments can often be negotiated with all the creditors and will ensure rent, mortgage, energy, critical insurances and council tax bills get paid before other unsecured debts."
