Positive signs on private sector employment

Unemployment, whether temporary or longer-term, is understood to be one of the most important causes of serious debt leading to the need for a trust deed or other debt solutions. With public sector employment in Scotland due to fall in 2011 a great reliance upon the private sector creating jobs exists. Should the private sector manage to do this many fewer people will ultimately find themselves in serious debt and contemplating the use of a trust deed.

Two positive bits of evidence have come to notice this week. Business failure records provide data on the number of companies that have had to cease trading which is usually accompanied by job losses. Equifax report that in October/November the number of business failures in the UK was down by nearly 5% compared to the same months last year. Scotland was the region with the second highest decline in business failures, with the numbers down by a very significant 21.6%.

A survey by Bank of Scotland for November may also indicate that employment and employer confidence in Scotland are on the increase. Such confidence is essential if employers are to invest in growth and create new positions. Reported on the BBC website, the survey sought the views of 100 recruitment experts. The report showed improvements in both part-time and full-time hiring, with the wages of permanent full-time staff increasing for the first time in six months as demand for their services grew.

The link between unemployment and serious debt is very clear and the signs that businesses are trading better and starting to feel more confident about explanding will be welcome news to thousands of public sector workers currently fearing the loss of their jobs.

Anyone worrying about losing their job is advised to repay expensive unsecured debts and, once they have been cleared, to build up a savings safety net. In the event that unemployment does lead to serious debt problems a range of debt solutions, including a protected trust deed, exist to provide relief from the debt and protection from creditors.