Legal & General comment on the ONS unemployment figures released today.
16 March 2011
John Pollock, Group Board Director for Legal & General's Risk business, says: "Recent research by our investment management team highlighted that consumers in the UK are becoming increasingly concerned about rising unemployment. 50% of UK consumers think that unemployment will rise over the next twelve months* and today's ONS announcement of a further increase in the number of people unemployed, just confirms their view.
Interestingly, the proportion of consumers who think that unemployment will rise compared to those who believe it will fall over the next 12 months in Europe, was only 20%*. So UK households are likely to be more worried about losing their jobs than securing a pay rise to cover the increasing household costs that are hitting UK homes. More people are likely to struggle to meet their household bills and make their monthly mortgage payments, potentially putting their home and family at jeopardy of repossession.
Those unfortuntate to be made redundant will not find it as easy to replace their loss of income with state unemployment benefits. This is when insurance is a real benefit. As the UK's number one protection provider we strongly urge consumers to seriously consider putting some form of insurance cover in place to provide a financial cushion for their future given the gloomy expectations."
Notes to editors
The information contained in this press release is intended solely for journalists and should not be relied upon to make any financial decisions.
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