Simply Hired UK Blog

Payday Loans: Why Those in Short Term Employment Should Avoid Them

While the portents of economic gloom often darken the vast majority of job markets and industries at one time or another, some remain able to prosper in even the most trying of financial circumstances. After it was announced this week that payday loan company Ferratum anticipated huge growth during 2012 and 2013, it became clear that high unemployment and poor job security would in no way hinder the brand’s operation over the next 18 months. Yet this is contrary to all perceptions of the payday loan, and more specifically the debt it can encumber citizens with during a recession.

What is a Payday Loan?

For those who are not familiar with payday loans, they are short-term financial agreements that allow consumers to borrow money while they are waiting for their next pay cheque. There are not many stipulations for potential consumers, except for the fact that they must be in some form of employment and in many cases cannot borrow more than £1000. Often the terms of the loan demand that the money must be repaid in full within a calendar month of the agreement, with a regulated level of interest heaped on top for good measure.

On the face of it payday loans sound like practical solutions for those suffering from reduced cash flow, and this should indeed be the case so long as consumers use them sporadically and only borrow sums that they are able to repay comfortably. When surrounded by the ill winds of an unstable economy however, these agreements can suddenly seem as unflinchingly inflexible and ultimately serve to burden individuals and families with unwanted debt. So what exactly are the risks of a payday loan, and who should strive to avoid them at all costs?

The Perils of the Payday Loan

While those out of work cannot qualify for a payday loan and can rest easy, anyone in employment can secure a loan from one of the thousands of lenders throughout the UK. The primary issue with these loans is that they are likely to escalate if they are rolled over, and given the already perilous state of the economy this can trigger a cycle of extensive borrowing and debt accumulation. Consider the following: 

• The short term nature of the agreement means that debts must be repaid promptly, and given the pressing nature of paying bills in a strained economy consumers are often forced to renew their loan agreement over a period of consecutive months.

• While this cycle of debt can be damaging enough, a missed payment can trigger extensive debt escalation in line with the exalted levels of interest affiliated with payday loans. These may range from 100 to 4000%, and can turn a small repayment into a significant debt.

• The current economy only serves to make the payday loan even more of a risk factor, especially for those in short term or long term temporary work. Even those employed on a permanent basis cannot be sure of their futures, and any sudden job loss or unpaid redundancy could force you to renege on your payday loan agreement.

Regardless of your needs or your confidence in being able to repay your payday loan, remember that the current economic climate makes it extremely difficult to follow even the most well laid of financial plans. While those in short term employment should avoid payday loans at all costs, even permanent employees should think twice before they commit to such a financial commitment at the current time.

How the Retail Sector Could Hold the Key to Economic Growth in the UK

While the public sector continues to dominate the headlines across the UK, it is the performance of retail outlets up and down the country that hold the key to a sustainable economic recovery. In fact it accounted for a staggering 20% of the British GDP in 2010, earning £292 billion worth of sales and supplying a vast number of jobs to the UK market. As the sector begins to flounder as we head towards 2012 however, are we in danger of recognizing the potential influence of retail before it is too late?

Why is Retail So Important?

A thriving retail industry is crucial for so many reasons, and it is especially critical given the nations current economic circumstance. To begin with, entry level retail provides a fantastic route into employment for school leavers and the young unemployed, as well as opportunity for them to progress into management and more senior positions. With youth unemployment tipping the 1 million mark in October of this year, nurturing a healthy retail sector could drastically cut unemployment in 2012 and beyond.

It is also significant in terms of consumer confidence, and where unemployment is high and job creation is low then there follows a significant dip in expenditure. By spending less in retail outlets and reinvesting a reduced sum back into the economy, then consumers are unknowingly aiding the process of stalled economic growth and recession. So not only does a prosperous retail sector provide jobs, it also generates huge amounts of revenue for the wider economy.

What Can the Government Do to Boost the Retail Sector?

The government can play a clear and decisive role in boosting the retail industry in the UK, but it must first recognize the value that it offers in the first place. There are several economic and budgetary factors which can influence the fortunes of the retail sector, and these must be paid careful attention if our economy is to thrive:

• As a third of all retail employees are under 25, it is clearly a sector that appeals to the school leaving generation. It is therefore important that the government continue to further this positive perception of working in retail, by ensuring that an attractive minimum wage is offered to all employees aged 17 and over.

• The governments approach to business rates is also critical, as retail outlets must be given a competitive chance for survival when consumer spending is diminished. If retail outlets throughout the country are hit by increased tax liability, then they seeing their profits being impacted by government action as well as reduced customer activity.

• For job seekers who have been made redundant or find themselves highly skilled in a struggling industry, retail actually provides a wonderful opportunity for retraining. Bodies within the retail sector spend more per head on training and development than any other industry, so the government may find it worthwhile to create initiatives of their own to make retail a viable option for unemployed individuals.

Do you feel that the retail sector could play a crucial role in boosting the UK economy? Please let us know your thoughts @simplyhireduk

George Osbourne's Autumn Statement: The Public Sector Demise

As the recent strike action proved, the divide between the coalition government and its public sector workers has grown at an alarming rate since 2009. Given the details of last weeks autumn statement, which was delivered before the action took place, there is a danger that this gap may become unbridgeable as we close 2011 and enter a brand new year. Once again the public sector was hit hard by chancellor George Osbourne's proposals, but do his plans make sound economic sense or are they a prelude to stalled economic growth?

The Public Sector: Widening the Divide Between Workers and Employers

One of the most surprising aspects of the chancellors statement was his further raid on the public sector, especially given the recent controversy that surrounded his proposal for reduced pension contributions. So how exactly were public sector workers hit, and what does the immediate future hold for them?

• It was announced that public sector pay rises will be restricted over the next 5 years, with salaries expected to rise by just 1% once the current pay freeze is over. Alongside reduced pension contributions, it means that a potential deal with unions is even further from being concluded.

• It is independently forecasted that total job losses across the UK public sector will reach more than 700,000 by the 1st quarter of 2017, which is nearly double than was being predicted in March of this year. 

• The government have also pledged to lift the retirement age from 66 to 67 by 2028, an act which the coalition believe will save up to £59 billion during this time. It will however force public sector representatives to work for longer, and may prove to be final straw for beleaguered union leaders.

What Does This All Mean for the Public Sector and the Economy at Large?

What astounds most public sector workers is that the government continue to dismiss the validity of their cause and right to strike, despite the vast pay and pension cuts that they are being forced to consider. In making these savage cuts across an already vulnerable sector, are the government taking a sideways step to move forwards or simply toppling backwards?

• The combination of sanctions facing public sector workers means that a deal with the coalition is unlikely to be reached, leading the way for more strikes and disruption across the UK. Given the already perilous state of the economy, prolonged disruptions to productivity could hinder its recovery even further.   
• If the pension dispute doesn't force public sector workers into finding alternative employment, then the inevitable onset of redundancies will. This will put an increasing strain on the shoulders of the private sector, which could become too burdensome if a further recession hits the UK.
• The public sector accounts for a large body of workers, all of which will see their pay frozen while the cost of living continues to rise. This, alongside soaring unemployment in the private sector, will see a vast reduction in consumer spending and provide a further hinderer to economic growth.

What are your views on the governments growth plans, and do you feel that the public sector is being forced to shoulder too great a burden of the UK's deficit? Please leave your comments or tweet your thoughts to @simplyhireduk

The Public Sector Strike: The Rights and Wrongs

This week's public sector strike drew more than 2 million participants from across the UK, marking it as the single most significant action in more than 30 years. As professionals across a wide body of public sector unions protested the governments proposed pension changes, so too the dispute spilled into the public conscience and promoted discussion in households up and down the country. With workers remaining indignant and the government criticising them for their actions, who holds the moral high ground in the quest for fair working rights?

The Government Standpoint: Reducing Public Expenditure for the Good

Under the coalitions plans public sector workers would be forced to pay more into their own pensions, while also face up to the prospect of having the retirement age lifted to 68. The proposal comes at a time where David Cameron is overseeing a vast program of reform to cut government expenditure, with an overall goal of reducing the UK's financial liability between now and 2015.

• From the governments perspective they are balancing attempts to rejuvenate the economy with spending public money responsibly, and this has inevitable consequence for public sector workers. The chancellor has a duty to manage an entire economy, and must strive to do what is right for the future of UK growth.

• By reducing their own contributions into public sector workers pensions, the government is striving to minimize its expenditure and encourage staff to take a more significant responsibility for their own individual pensions. This would enable them to continue to invest in public sector services and activities without significant compromise.

• Above all, chancellor George Osbourne and David Cameron have both derided the protests as irresponsible. While Mr. Osbourne feels that the actions of public sector workers will further damage the economy and the performance of critical services, the Prime Minister himself has criticised the role of unions in fueling the fires.

The Public Sector View: The Victims of a Gross and Unfair Tax?

The public sector unions and workers have an entirely different view of course. Given that they are being forced to significantly raise their own pension contributions at a time when wages are frozen across the whole of the public sector, they view the government as doing little more than implementing a forcible pay cut. Alongside the rising cost of living and the default retirement age being pushed back to 68, this means that public sector workers will be forced to work longer for considerably less money.

• Although public sector workers understand the need for responsible spending better than anyone, the governments proposals go way beyond making reasonable adjustments. Public sector workers consider themselves as easy targets for cost cutting exercises, while billions of pounds continue to be spent annually on long term job seeker benefits.

• Jobs in the public sector are already less well paid than corresponding roles in the private sector, and implementing pension contribution increases during a wage freeze only reduces the level of income that workers within the sector take home each month. This could have a debilitating effect on the economy, by reducing consumer spending and confidence.

• For all of the governments claims of union disruption, the coalition must accept that there is a growing concern about their attitude to employee rights. With these pension proposals alongside a tightening of employment tribunal legislation, unions are being forced to act to protect workers across the private sector.

 

Staying Informed in the IT Industry

As the UK hurtles towards another period of recession, so too the competition for roles in prosperous industries continues to intensify, with the result that job seekers are being forced to work harder than ever to secure permanent employment. The IT industry provides a relevant example, and as the demand for software programmers and business analogists continues to grow, employers are able to apply ever more stringent criteria for their potential candidates to meet. So, if you are to land your dream job in IT, it is important to stay informed to gain a crucial edge on your rivals.

Why is the IT Industry Continuing to Prosper?

In order to eventually impress potential employers in the IT sector, it is important to understand why the industry continues to prosper during a recession. There are several factors, so consider the following when preparing to apply for a role with an IT firm:

• The IT industry is continually evolving, and at a pace which is only increasing as time goes by. This creates brand new opportunities for the creators of software and programs, and a steady but relentless supply of employment vacancies with reputable firms.

• Given the increasing reliance that we have on technology and its devices, it remains an area in which companies continue to invest even during periods of economic hardship. This enables it to prosper in times of recession, and create jobs that may help to boost the economy. 

• The sector boasts jobs which require specific skills, so there is little room for ambiguity between employers and potential candidates. Whether you have software development or analytical skills, there are particular outlets in the IT field where can apply your acquired ability and knowledge.

How Does This Knowledge Help You to Stay Ahead?

This understanding of the IT industry is crucial, as it helps you to prepare for an employers expectations and the questions you are likely to face during an interview. The task that remains is how to use it to your advantage, and create a good impression throughout a specific application or interview process.

• As an industry that evolves and innovates at such a rapid pace, its major players are keen to test your knowledge on the latest trends within the market. Consider signing up to resources that deliver breaking news to your email inbox on a daily basis, and be sure to check this regularly and without fail.

• Many IT organizations are also keen to discover the role that technology plays in your everyday life, and may question you regarding this during an interview. This will relate to the devices that you use and how you apply technology to save yourself time and money, so prepare a response that displays a logical understanding of IT and its advantages.

• You must continually make your own way towards personal growth, so be prepared to take vocational courses within your specific niche of the IT industry. Check your local college for relevant educational programs which can suit your skills, as seeking self improvement not only develops new talents but also gives an admirable impression to potential employers.

Are you skilled within the IT industry? If so, how do you stay in touch with the latest market trends? We would love to hear your thoughts.