Fear stalks families as recession bites

A WOEFUL winter is in prospect for many Oldham families after unemployment hit its highest level for eight years.

Latest figures show there were 4,549 people in Oldham claiming jobseeker’s allowance last month — the highest number since March, 2000.

Business and trade associations are reporting a downturn in activity, with the construction industry hardest hit.

Nationally, the Government has seen unemployment rise to its worst level since 1999.

There were 1.79 million people out of work in the quarter to August, an unemployment rate of 5.7 per cent.

This represents a 0.5 per cent increase over the quarter.

Latest data from the Office for National Statistics show a 46,000 drop in the number of manufacturing jobs in the UK to a record low of 2.87 million.

Carol Hopkins, Oldham local manager at Greater Manchester Chamber of Commerce, said: “Our latest quarterly economic survey shows recruitment in manufacturing and services has remained static, but the long-term outlook isn’t good.

“So far most redundancies have been in the construction industry, but other sectors are starting to feel the pinch.

“The problems in the financial sector and the mergers of some leading banks could lead to redundancies, but it is too early to estimate the number.

“Hopefully, the recent cut in interest rates and the Government’s rescue package for the banks will inject some confidence into the system.”

Mohammed Rahim, chairman of the Asian Business Association, said: “Businesses are experiencing a slow down when they would usually expect to see things pick up towards Christmas.

“To what extent this is down to uncertainty in the market, or people being uncertain about jobs, we can’t say. But people appear to be tightening their belts.”

Councillor Dave Hibbert, opposition member for regeneration, said: “Over the last five years the regeneration department created or retained 3,500 jobs.

“Without these efforts, the situation would have been much worse. But that doesn’t make it easier for those unemployed today.

“The construction area is one of the hardest-hit, for example the collapse of Hillside Developments impacted quite badly on our plans for flats and homes such as at Riley’s snooker hall.

“The financial freeze has stopped finances flowing through the veins of industry.

“But with inflation levels expected to be right down to 1 per cent next year, this is the beginning of the end of the problems.”

Paul Kenny, general secretary of the GMB union, said the Government should focus on creating jobs in the transport infrastructure and social housing to keep people in work and boost confidence.