The one thing about a recession is that it has very long tails.. And one of those tails tends to be unemployment.
Whilst the first signs are being reported of a growth in economic outlook the same cannot be said for unemployment numbers. Since it takes time for businesses to reduce in size and lay people off, there is always a delay in the statistics reporting benefits claimants and new jobless numbers. This means that the bad news drags on for months after things feel as if they are getting better.
The gradual climb out of recession means no speedy return to employment for many people in the UK. The latest forecasts indicate that the level of unemployment could climb past the three million level just before the general election. That is a climb of almost a million over where 2010 starts and indicates that industry is far from ready to start hiring again.
What has made this recession different is that it was preceded by a deep and punishingly damaging financial crisis that nearly broke the banking system. This was fuelled by crippling levels of personal debt that has led many to bankruptcy or severe financial strain. It is not surprising that many have taken the opportunity to pay down as much debt as they can - including repaying mortgage balances.
Many consumers have learnt the hard way about budgeting within their means and having a standby fund for emergencies. Many have also learnt how to handle their money better in these troubled times and have sought out alternative ways to earn additional income.
The advent of the internet makes accessing new ways of earning that much easier. Whether it is completing on line surveys for money, share trading or selling goods on ebay, there is always a way to earn a little extra cash. And with the majority of job search agencies online too, searching for a part time or better paid job is simpler - though actually getting the job with today`s level of competition is much harder.
So with prospects for the economy and jobs both looking luke warm for 2010, this is going to be a year to keep focused on making whatever money you have stretch as far as possible. Pay off as much debt, save money where you can, find as many ways of making money as possible and hope that the tax man doesn`t take too much from you to pay for the sins of yesteryear..
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