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Those claiming Jobseekers Allowance (JSA) are often in more debt than the rest of the general public, which may interest those trying to set up a recruitment agency.

The research, published by the Consumer Credit Counselling Service (CCCS), shows that three times as many people claiming JSA are in debt than the general population.

In the first six month of this year, 22.4 per cent of those contacting the CCCS - the largest debt charity in the UK - claimed that unemployment was the main reason for their financial difficulties.

Malcolm Hurlston, chairman of CCCS, commented: "There is a causal link between unemployment and debt. Unemployment can devastate the finances of any family."

Research by the Centre for Economic and Business Research suggests that, in the next five years, unemployment in the north particularly will continue to rise.