Unemployment `could rise sharply in coming months`

Unemployment could rise sharply in the next few months, largely due to public sector cuts, according to the Chartered Institute of Personnel and Development (CIPD).

In a survey carried out with KPMG, the CIPD found that `redundancy intentions` amongst employers were at the highest level since the survey began in 2004, with four in ten organisations planning job cuts in the first quarter of this year, the BBC reports.

This includes one third of NHS employers, half of central government and three quarters of local government employers.

An expert at debt management company Gregory Pennington said that workers should ensure they are prepared for the possibility of unemployment, even if it seems unlikely.

"Unemployment is a risk that just about anyone can face, especially in the current economic climate, and it`s something we should all be prepared for. That kind of drop in income can make it very difficult to keep up with regular commitments, including debt payments.

"As such, we urge borrowers in particular to do what they can to get their finances into good shape - perhaps by making regular savings or paying more towards their debts. Anyone with any concerns about their finances should get advice from an expert."