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Poverty on rise as recession hits Nearly half of jobless 'under 25'
(about 2 hours later)
A south Wales valleys area has the highest rate of unemployment of any in the UK, new poverty research shows. Nearly half of unemployed people in Wales are aged under 25, a charity's report has claimed.
Blaenau Gwent tops the list, according to the Joseph Rowntree Foundation, while nearby Merthyr Tydfil is 10th. The Joseph Rowntree Foundation is calling for urgent action to prevent the situation getting worse.
The charity's report on poverty and social exclusion also says 45% of all unemployed in Wales are under 25. The report also revealed that Blaenau Gwent in south Wales, has the highest rate of unemployment in the UK.
County court possession orders have risen threefold since 2004, and are at early 1990s level, with the scale of buy-to-let mortgages part of it. The assembly government has welcomed the report and insists that tackling the social impact of the recession is one of its priorities.
The report called "Monitoring poverty and social exclusion in Wales 2009" was carried out for the Joseph Rowntree Foundation, by the New Policy Institute. The report, published by the development and social research charity, is called Monitoring Poverty and Social Exclusion in Wales 2009.
It is the second update of one published in 2005 but is the first study it has published in a recession. Claiming that 45% of people unemployed in Wales, were under the age 25, it also claimedpoverty was rising before the recession and warns of a new jobless generation lacking "experience, qualifications and self-belief".
It found poverty was rising before the recession and warns of a new jobless generation lacking "experience, qualifications and self-belief".
The study looked at unemployment and found the sharp rise in unemployment only really started in the latter half of 2008, with the average for those six months approaching 100,000 (equivalent to 6.9% of the economically active labour force), a level last seen in 1996.The study looked at unemployment and found the sharp rise in unemployment only really started in the latter half of 2008, with the average for those six months approaching 100,000 (equivalent to 6.9% of the economically active labour force), a level last seen in 1996.
It seems clear that these effects will worsen, the only question being by how much New Policy Institute report from Joseph Rowntree Foundation If this situation persists, the risk may be of a new generation lacking the experience, qualifications and self-belief to provide for themselves and their families. New Policy Institute report from Joseph Rowntree Foundation
Researchers found the joblessness caused by the recession was affecting some areas disproportionately. Researchers found the lack of jobs caused by the recession was affecting some areas disproportionately.
The six south Wales Valley local authorities, plus Newport and Bridgend, have the highest proportion of Jobseeker's Allowance claimants in Wales. This was not the situation before the recession. Several south Wales Valley areas have the highest proportion of Jobseeker's Allowance claimants in Wales which, the report says, was not the situation before the recession.
In five areas, including Pembrokeshire, Monmouthshire and Flintshire, claimant numbers have doubled over 12 months. The report's authors says because unemployment has doubled over the past 12 months in areas including Pembrokeshire, Monmouthshire and Flintshire, it could be argued that the recession is having a big impact across the who of Wales.
They said it was too early to say which area of Wales would end up with the highest rate of unemployment, apart from Blaenau Gwent which had a rate of 8% rate and perhaps Merthyr Tydfil, whose rate was 6.5%.They said it was too early to say which area of Wales would end up with the highest rate of unemployment, apart from Blaenau Gwent which had a rate of 8% rate and perhaps Merthyr Tydfil, whose rate was 6.5%.
Among young people, those aged 16-24 (excluding most students and other people considered economically inactive) the unemployment rate was 16%, equating to about one-in-ten of all young adults in 2008.
'In-work poverty'
As a result, just under half (around 45%) of unemployed people in Wales were under 25.
Report co-author, Peter Kenway from the New Policy Institute, said: "The most significant current aspect of the recession is the high level of unemployment among young adults in Wales.Report co-author, Peter Kenway from the New Policy Institute, said: "The most significant current aspect of the recession is the high level of unemployment among young adults in Wales.
"If this situation persists, the risk may be of a new generation lacking the experience, qualifications and self-belief to provide for themselves and their families.""If this situation persists, the risk may be of a new generation lacking the experience, qualifications and self-belief to provide for themselves and their families."
The report also said that as concern shifted to unemployment and its consequences, there was a risk that "in-work poverty" could be forgotten.The report also said that as concern shifted to unemployment and its consequences, there was a risk that "in-work poverty" could be forgotten.
It said: "If that happens, when people start to find work again as the recession ends, that work will not necessarily provide an escape from poverty." "If that happens, when people start to find work again as the recession ends, that work will not necessarily provide an escape from poverty," it said.
The study looked at county court possession orders for property, but these did not include those repossession which happened without court involvement.
Repossessions
The Council of Mortgage Lenders estimated that the number of homes repossessed in in the UK last year was just over half the peak figure recorded in 1991.
The study concluded: "The experience across England and Wales in the early 1990s suggests that even when possession orders eventually peak, high levels of home repossessions can be expected to persist for several years to come."
It added that it would be at least a year before definitive evidence of the recession's effects on poverty would be available.