This equates to 7.2% of the UK workforce out of work. Young people have been hit hardest by the recession, with unemployment among 18-24 more than double the national averages, at 16.6%.

As more people find themselves out of work, more will require debt advice, as it becomes harder to make ends meet.

However, there was more good news for those in work. According to the Office of National Statistics, average earnings rose by 0.8%. Although it has to be taken into account that these figures include bonuses paid out in the financial services sector.

The number of job vancancies has also fallen recently, from 659,000 in May 2008 to 424,000 in May 2009.

If you have less than £15,000 unsecured debt, less than £50 monthly disposable income to clear it and less than £300 in assests, you will be able to apply for a Debt Relief Order, which will help people in England and Wales.

The Scottish equivalent is LILA (Low Income, Low Assests).

Debt Relief Orders have some advantages over bankruptcy. For example, it costs £495 to enter bankruptcy, compared to just £90 for a Debt Relief Order.

However, it will remain on your credit history for six years, and will be on public record for 18 months. During this time you will be unable to get credit of more than £500.

Like all debt solutions, Debt Relief Orders have some restrictions. You should think carefully before deciding if it is right for you.

A survey showed that most adults were concerned with clearing debt rather than paying into a pension plan.

The situation was worse among those aged 30 and under. In this group, only 36% had began to plan for their retirement.

Among those aged 41-60 only 55% were paying into a pension. The growing redundancy rate is thought to be a reason why many people are not paying into private pension funds.

The survey was commission by the BBC.

At the same time, many banks are increasing interest rate charged when people are overdrawn. For example, the Nationwide interest rate now stands at 18.9% – double what it was a year ago.

Barclay’s have announced similar increases, from 9.6% to 12.9%.

As banks are trying to recoup losses, more people could be forced to seek debt consolidation. This could help them reduce their monthly outgoings and reduce charges.

Perhaps most disturbing, many people do not relise how much the over draft is costing them. According to the Office of National Statistics 66% did not know they would be charged when overdrawn.

Quite simply, people need to make sure they become more aware of the charges associated with their account.

Some people may complain about the lack of measures to stimulate the economy, but there are still some signs of recovery.

Pressure has eased on the buy-to-let market, with a reduction in the number of agencies facing bankruptcy, compared to the start of the recession.

Also, the average house prices rose by 2.6%, according to the latest Halifax survey of the housing market.

However, although there are some signs of recovery, economists are advising caution.  Roger Bootle of Deloitte, said: “I think that monetary policy will remain exceptionally loose for a prolonged period.”

However, experts are still predicting there could be further economic decline on the horizon. Subsequently, many people will still need to seek debt management to help them make ends meet.

Of course, it is encouraging to see Nationwide Consumer Confidence Index rise to 53, compared to 51 in April.

This is the highest rating since November 2008.

The official figures show that the UK economy shrank by 1.9 per cent in the first quarter of 2009, supporting the comments made by Martin Gahbauer, chief economist at the Nationwide. He said: “While some reports suggest tentative signs of a slowing in the pace of economic decline, it is important to remember that a number of sectors are continuing to contract and any recovery is likely to be sluggish.

“It is likely that confidence will remain fragile.”

However, a survey carried out by Premier Inn into expenses claims found out that only 2 in 10 of UK workers will try to sneak some personal items onto their claims.

It is thought that the economic climate, with more people looking for debt solutions, has led to the expenses increase. On average, workers are now claiming £576 a year.

Not quite enough to get a moat cleaned, but enough to show that people are less willing to use personal cash to pay business expenses.

Some analysts have suggested this is because consumers are trying to reduce their outgoings, focusing on debt consolidation, while cutting spending.

The survey by the Confederation of British Industry showed that 48% of retailers had recorded lower sales in May compared to a year ago. Only 31% reported an increase in sales.

Andy Clarke, chairman of the CBI Distributive Trades Panel, said that some sectors had remained bouyant, commenting: “As for much of this year, supermarkets and shoe shops were the ones seeing decent growth.

“Sectors more dependent on people’s house moves, such as furniture and carpets and durable household goods, continued to see falling sales.”

In March, the amount of in-store credit was up 24% on last year. That is despite the fall in availability of loans from banks and other major lenders.

While hire purchase deals may seem like a good idea, one charity has issued a warning about them – as they could make people who require debt help dependant on in-store credit.

Chris Tapp of Credit Action pointed out that the final cost of hire purchase orders was often much hire than buying the products in question.

The research showed that furniture and electrical goods were most likely to be bought using pay now, pay later deals.

The Consumers Price Index also fell, from 3.2% in February to 2.9%.

But what affect will these figures have on those seeking debt solutions? Well the figures show that Britain is still in a climate of falling wages and, potentially, rising living costs.

This will clearly make things more difficult for those that are already struggling to make ends meet.

And as Government’s wages and pensions are linked directly to inflation figures, it seems things are going to become harder for everyone.