it probably is chronic.
One of the reasons I've heard for an increase in the number of people without "fixed" adresses (those either in hostels, on the street or at friends) is the sale of a lot of the old council housing stock, meaning that the local authorities don't have as much housing available for those who are "homeless".
One suggestion for the problem of getting a job without a fixed home might be for the government to help arrange for "postal addresses" for homeless people, basically a contact address (like a PO box) that someone who is having to move around every few weeks can use on job applications etc.
The actual problem is pretty complicated with many different reasons/causes from the cost of housing, education, unexpected changes in circumstances (if you lose your job without warning, your partner dies/splits up you can be really screwed etc).
I was listening to the radio the other day and someone made a very good point, at the moment if you are on housing benefit and living in privately rented accomodation the money goes to the landlord and does not actually help the situation in the long run (you still don't have secure accomodation).
The suggestion was that it might make sense for the government to help people get a private house in certain circumstances if they are "homeless", something along the lines of the council helps with the first X months mortgage or puts the equivilent of housing beneft towards the mortgage for a while with the clause that they get first bite if the house is repossed/sold. The end result is the it costs the council no more than at current, but with the result that hopefully it results in people who were/are homeless (but with job prospects if given a chance) no longer being homeless (saving money in the long term).
It's never going to happen though, as it won't look good to the general voting public who probably wouldn't see past the "OMG they are giving them houses".