

Horror year as 600,000 more go on the dole
At least 600,000 more people are expected to be thrown on the dole this year, a horrifying toll of almost 70 an hour.
Latest forecasts are that the flood of lay-offs and closures seen in 2008 will be dwarfed in the next few months.
Families already struggling with mortgages and rising bills will be plunged into deeper misery and fear — and problems such as depression will soar.
According to official figures, 618 new people a day, a total of 225,000, were forced to sign on last year.
That figure is now expected to triple, making 2009 the blackest year since the recession of the early 1990s.
Industries facing the most crippling blows include retail, manufacture and financial services. Huge High Street names including Marks & Spencer are set to issue profit warnings this week in the wake of Woolworths’ collapse.
The Federation of Small Businesses told the News of the World that up to 1,000 small and medium-sized firms will close each week during the first three or four months of this year. Spokesman Stephen Alambritis said: “It’s a bleak picture. We predict 30,000 small firms will go bust. Small firms employ 59 per cent of the working population, about 13.5 million people.”
British Chambers of Commerce director-general David Frost added: “I’ve worked through three recessions now and 2009 looks like it will be one of the toughest years I’ve ever seen.”
Retailing alone is expected to see 1,600 firms go under, leaving one in ten shops closed. Market researchers Experian predict “large-scale failure” will make 440 non-food retailers insolvent in four months. Next Wednesday a profits alert from Marks & Spencer is set to kick off the worst retail results in recent history, with Debenhams, Ted Baker and JD Sports also expected to post worrying figures.
Fashion chain USC, entertainment retailer Zavvi and clothing stores Adams and The Officers Club have all fallen victim to the credit crunch. And analysts believe the recent stampede of sales shoppers as prices were slashed has come too late for many others.
Freddie George, retail analyst at brokers Seymour Pierce, said: “It has been the worst Christmas for years and now we’re straight into the New Year hangover.”
In 2008 the number claiming £60.50 a week Job Seekers Allowance rose from 830,500 in January to 1,056,100 by the start of December. The amount claimed by those on the dole has now hit £63,894,050 a week.
Experts fear the total out of work, including those on other benefits or not claiming dole, will reach three million by 2010.
Charities and mental health organisations have been deluged by people struggling to cope. The Citizens Advice Bureau has seen calls from people worried about redundancy and money double to almost 450 a day.
Marjorie Wallace of mental health charity SANE said even the fear of unemployment was affecting more people’s wellbeing.
Biggest job cuts in 2008 included thousands lost at BT, Santander and Royal Bank of Scotland, with another 27,000 doomed at Woolworths without a late buyout.
