Women hit hard by struggling labour market

This week’s unemployment statistics reveal the impact the tough economic environment is having on the self-employed and women in particular.

Leading debt solution expert and DEMSA member, Atlantic Financial Management is warning of a deepening debt problem in the UK as lower income and part-time jobs traditionally taken by women juggling work with childcare, are now being taken by men and foreign workers as full time job opportunities become scarce. Loss of income is the biggest cause of people entering a Debt Management Plan (DMP) with Atlantic, who deal with a number of clients who are eligible for Jobseeker’s Allowance (JSA).

The highest figure since comparable records began

The ONS figures show that number of employees and self-employed people working part-time because they could not find a full-time job increased by 70,000 on the quarter to reach 1.28 million, the highest figure since comparable records began in 1992. Of the 1.58 million people claiming JSA in August 2011 (up 20,300 on July), the number of women claimants reached 519,200, the highest figure since January 1996. In addition, in the three months to July 2011, 162,000 people became redundant, up 47,000 over the quarter. This increase in redundancies occurred mainly among women.

"Women are being hit hardest by redundancies."

Kevin Still, Atlantic Director comments: “These figures confirm the increasingly tough time women and the self-employed are having, trying to make ends meet. Many former fulltime employed are now on shorter hours or having little choice but to work as self-employed with employers trying to avoid employer NI payments. And women are being hit hardest by redundancies. The public sector alone saw 111,000 jobs go and sadly not all of the skills are transferable to the private sector which creates a major challenge for those seeking alternative employment.

"...deepening spiral of debt."

"The fact is, when you are facing loss of income for any reason, you need to start prioritising your payments - mortgage/rent, council tax, essential insurances and utilities must come first. Speak to your lenders and service providers to flag up your financial status and seek professional debt advice at the earliest opportunity if the situation becomes unmanageable. The temptation is to keep things ticking along using credit cards but this can create a deepening spiral of debt. Tackling debt problems early on can save a great deal of heartache and anxiety and allow individuals to focus on a plan to get back into work and their finances on track.”

To find out more about Atlantic Financial Management contact us or call 0845 0 30 30 30