The population of the unemployed people seems just to be getting more and more with time passing by. Let us take UK for example. There number of people unemployed in the U.K. stands at 1.79 million, increasing from 1.72 million in July 2008. The Unemployment rate stands now at 5.75%, the highest level of unemployment since in 1991.

As a result of this it has put extra strain on public funds, with an increase of 3.6% in claimants for jobseekers allowance which happens to be of the biggest monthly rise. People who no longer re required at their work are removed and are called redundant. Redundancies have also been on the increase. This is evident from the fact that nearly 138,000 people were made redundant from April to June 2008 which is an increment. Redundancies have come from a number of sectors, although mainly those most affected by the credit crunch, like Northern Rock, Ford, UBS, HSBC and investment bank Lehman Brothers.

The constant rise in the redundancies along with a drop in the number of vacancies, highlights that the very fact that the economic downturn has had a direct effect on demand for labor. With the reduction in jobs market the number of people unemployment will increase a lot and may over take more the 2 million figures. With the present rate of decrease in job opportunity and recession rate the unemployment figure will touch 3 million by 2010. These facts without any doubt bring shivers down our spine.

The most affected people from the work sectors are the low skilled workers who are not trained in anything other to which they can fall back to. There are fewer laws which will prevent employees from falling victim to unfair redundancy,

According to the law employees who have served longer than two years can expect at least a minimum legal payment, which is tax-free up to £30,000. £330mostly will be the capped amount, but like everywhere else there are also particular terms and conditions dependant on the age of the employee during service (half the weekly amount for each year served under the age of 22 and 1.5 times the same amount for every year over 41 years old).. Some firms offer more generous redundancy packages, such as a month’s pay for every year at work. This varies obviously from place to place.

On the other hand the very employees made redundant that have less than two years of service are unfortunate not have the right to a statutory redundancy pay. However, this does not necessarily indicate that there will be none forthcoming.

Reading all the above facts and figures makes you think more and more negative. The future very much looks bleak. Hard times are surely promised in the near future. So it’s always better to prepare for it to be able to take the beatings. In order to meet our financial obligation in future we need to save money now. Do everything in power now to insure your future security.

Popularity: 7% [?]