Thursday 16th of April 2009
Unemployment levels in the UK are likely to continue rising even after economic recovery begins, it has been suggested.
Capital Economics has predicted that redundancies will increase, something that could leave many Britons struggling with debt management issues.
According to Jonathan Loynes, chief European economist at the research consultancy, unemployment is expected to reach 3.5 million - around 1.5 million more than is already being seen.
"I suspect we’ll see unemployment rise for several years at least," he said, adding that "it tends to normally go on rising until after the economy itself has started to grow again".
As a result, Mr Loynes observed, many large as well as small businesses could go bankrupt, which may leave former employees needing to turn to debt management plans.
The National Institute of Economic and Social Research recently suggested that the effects of the recession will be felt in the UK until 2012.
