The deepening recession will leave as many as 3.2 million Brits unemployed this year, the British Chambers of Commerce (BCC) is warning.
With the latest government unemployment figures showing unemployment currently at just under two million, it means many more jobs could be lost before the country emerges from the recession.
Overall, the BCC expects the UK economy to contract 3.7% in 2008/09 - far worse than the 2.5% peak in the 1992-93recession.
With this in mind, now is certainly a good time to consider taking out a protection policy to ensure you are able to meet your monthly commitments should you find yourself out of work.
Choose the right policy
Whether you want broad income protection, or simply mortgage or loan payment protection insurance (PPI), it’s good to know you are covered in these uncertain times.
If you are in the market for a PPI policy, it’s essential you take the time to compare different providers, as the difference between the cheapest and most expensive can be astronomical.
Remember to check the smaller players too, as independent PPI is often significantly cheaper.
Some good news
It’s not all doom and gloom on the employment front, however, with the Chartered Institute if Personnel and Development (CIPD) predicting that the worst of the UK's current employment "cull" may well be over by Easter.
According to the CIPD, the number of American firms planning to cut jobs has fallen from one in three to one in five and, given that job trends in the UK tend to lag a few months behind those across the pond, it expects a similar change in Britain.
However, the group hastens to add that things will almost certainly get worse before they get better.
