The number of people struggling to repay their debts and mortgages could increase in the UK after it was revealed that the unemployment rate has increased to its highest level since 1994. The jobless rate has surged to its highest level since before Labour came into power, and the threat of further job losses is still high.

Over the past couple of years the financial crisis and recession has seen many people suffering financially, with many accruing high levels of debt and many others unable to cope with the debt that they already had. During the three months to February the unemployment rate increased by 43,000, and this could further impact on the abilities of tens of thousands of people to make debt repayments.

The data was released by the Office for National Statistics. The figure also showed that whilst the unemployment rate had increased the number of people claiming unemployment benefit fell dramatically in March, showing a higher than expected fall of 32,900.

Youth unemployment has been increasing according to the figures, and in the December to February period there were 929,000 people aged between sixteen and twenty four out of work. There was also an increase in economically inactive people, which are those that are out of work and not actively seeking work. Yvette Cooper, the Work and Pension Secretary, commented on the figures.

Cooper stated: “What this shows is that we are not out of the woods yet. That’s why it is so important that we keep increasing the support for the unemployed, but also that we sustain the overall support for the economy.”

The jobless figure has given the Tory party more fuel to verbally attack the Labour government, with the shadow Work and Pension Secretary stating that Labour policies were clearly not working.