New Federal Government figures show the number of unemployed people in the Blue Mountains rose by 39.4 per cent last year.

According to the State opposition, a report released by the Federal Government this month revealed an additional 787 people became unemployed in the Blue Mountains between March 2008 and 2009.

With many local families doing it tough, the burden has fallen on community welfare organisations but as demands have risen, donations are decreasing with businesses feeling the brunt of the economic downturn.

Springwood Neighbourhood Centre community cultural development officer, Lauren Harris, has seen an increase in the need for their services, particularly over the last 12 months.

“People are struggling, there’s no doubt about it,” Ms Harris said.

“In the last 12 months we have been seeing an increase in people needing assistance, particularly emergency relief assistance.”

“There is also an increase in homelessness and that is really uncommon for this (Mid and Lower Mountains) area.”

It may be a bleak Christmas for some local families who rely on welfare organisations at this financially challenging time of the year.

Among their many services, the Springwood Neighbourhood Centre hosts a Christmas lunch and provides hampers for people in need.

“We are finding it harder to get donations now. Businesses are donating less because they are also struggling, but the need for these services has increased,” Ms Harris said.

A representative from the Mountains Community Resource Network in Lawson, a peak body for Blue Mountains community organisations, said the organisation was concerned about the impact unemployment has on families and communities.

“Unemployment creates financial and social hardship. It can heavily impact on housing security and homelessness and is very hard on families and communities as it can have an impact on their physical and mental well-being,” community development worker Can Yasmut said.