Credit crunch hits the jobless

RISING unemployment is blamed on the credit crunch.

In August, there were 346 more people claiming jobseekers allowance in Gateshead than in August 2007. The jobless figures rose in 20 of the 22 council wards in the borough.

Opposition councillors said the newly published figures are a worrying sign of the credit crunch.

Coun Peter Maughan said: "The actual number of unemployed residents however is likely to be double the figure of 3,756 which is the figure for those who are on jobseekers allowance in Gateshead. There are many people who are unemployed but do not qualify for this benefit."

The Liberal Democrat wants to see the government stepping in to give councils the power to buy the homes of those facing repossession so they can be rented back to the former owner

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