Low earners most affected by recession
Posted by on 8th March 2010 to Debt News
Low earners are the most likely to carry on facing problems after the recession, according to a finance expert.
Speaking at the Northern Money Conference at the Contemporary Urban Centre in Liverpool last week, Sophia Parker of the Resolution Foundation, said that those who were on low incomes were more vulnerable after the recession than any other group.
She said: "There is kind of a perfect storm going on. What we found this year is that low income households spend all of their disposable income each week on average. That is not great in terms of margins for movement or change and to make it worse, it is being accompanied by clear issues around [...] income for low earners.
"Partly through job loss, but actually, equally through underemployment –through a reduction in hours. When you have got so little room for movement, simply losing hours can make a very real difference."
Those on low earnings were in jobs where they were unlikely to receive training or support to get new skills, making it near-impossible for them to get better paid work, added Ms Parker.
Posted by Clement Moine
Debt Free Helpline offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our trained debt advisers today.
Speaking at the Northern Money Conference at the Contemporary Urban Centre in Liverpool last week, Sophia Parker of the Resolution Foundation, said that those who were on low incomes were more vulnerable after the recession than any other group.
She said: "There is kind of a perfect storm going on. What we found this year is that low income households spend all of their disposable income each week on average. That is not great in terms of margins for movement or change and to make it worse, it is being accompanied by clear issues around [...] income for low earners.
"Partly through job loss, but actually, equally through underemployment –through a reduction in hours. When you have got so little room for movement, simply losing hours can make a very real difference."
Those on low earnings were in jobs where they were unlikely to receive training or support to get new skills, making it near-impossible for them to get better paid work, added Ms Parker.
Posted by Clement Moine
Debt Free Helpline offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our trained debt advisers today.
