Statistics showing almost half of the unemployed people in Wales are under 25 has been released by The Joseph Rowntree Foundation. The registered charity has published a review focusing on debt and unemployment statistics from low income families during the last ten years in Wales.
The rate of unemployment amongst 16 to 24 year olds was found to be 16%, which equated to almost half of the unemployed in Wales. This figure has also been reflected in an the number of those receiving Job Seekers Allowance (JSA), with Pembrokeshire, Monmouthshire and Flintshire all doubling their figures in the last year.
Unemployment levels in Wales only started to rise sharply towards the middle of 2008, with the number of individuals out of work now in excess of 100,000. The report also discovered that the majority of those who have suffered job loss are men.
When investigating the unemployment in Wales, the report also found that unemployment is considered to be the main risk to becoming a low income family. Statistics from 2007/2008, before the commencement of the recession, show that low income was starting to rise sharply. According to the review, a working family in Wales has a 5% risk of becoming a ‘low income family’ in comparison to 60% for families without work.
On a positive note however, the statistics have indicated that the amount of senior citizens and children living in low income households has continued to decrease in Wales since 1995.
In addition to looking at poverty levels, the report also covered debt issues such as home repossessions, County Court claims, and mortgage arrears. Judging by the amount of County Court possession orders in Wales, the number of individuals experiencing difficulty making their mortgage repayment is already as high as it was in the last major recession in the early 1990's. Whilst there were only 2,600 possession orders in 2004, this figure increased to 7,700 in 2008. Statistics from the early 1990's are indicative that repossession numbers are likely to continue to rise for many years to come.
The Joseph Rowntree Foundation seeks to highlight underlying issue of social exclusion in an attempt to influence government policy. Amongst its objectives is an analysis of rising unemployment and how it has affected levels of personal debt.
The full effect of the global recession was yet to be seen at the time the report was documented, so there is potential for these figures to change over the coming months. However, it seems unlikely that the situation has improved and that a lack of income means that many low income families in Wales have no alternative but to turn to credit. Anyone with large debt problems who find themselves unable to keep up with their financial commitments should always seek impartial debt advice before considering new avenues of credit.
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