John Pollock, Group Board Director for Legal & General's Risk businesses, commenting in response to today's ONS announcement on unemployment figures.
16 May 2012
John Pollock, Group Board Director for Legal & General's Risk businesses, commenting in response to today's ONS announcement on unemployment figures said:
"It is great to see another drop in the number of people unemployed this month, down 45,000 on the quarter to 2.63 million and this may see fears of a recession revised away. However, the figures are surprising in that normally we would expect to see growth of at least 2% for unemployment to fall. Legal & General's view is that the UK is 'stuck in first gear' with underlying growth at around 1 to 1.5% and given the economic crisis in Europe we still expect unemployment to continue to creep higher later in the year.
Last week the Centre for Economics and Business Research said that the long-standing official prediction for joblessness was way short of the mark and that by 2016, we could see three million-plus people out of work.
Unfortunately, recent research we conducted highlighted that almost two thirds, (65%) of UK workers do not believe that the current state benefits would be sufficient to cover their living costs if they were made unemployed, and over a quarter, (27%) said that they would need to rely on just the state benefits if they were to become unemployed. So potentially of the 3 million plus people predicted to be out of work by the Centre of Economics and Business in the future, over three quarter of a million of those could be dependent on claiming state benefits.*
This is where Legal & General and other insurers, can help everyone by lifting this financial burden from the state. Over two thirds, (68%) of employed UK adults said in the same research we conducted that they do not have any insurance cover in place which would help them to pay their bills if they were to lose their job. Yet insurers are able to provide cover which means that people are still able to pay their utility bills or continue to run a car to get around if they were unable to work, rather then rely on the state. We believe its really important that people understand the support insurers are able to offer. We can be there to provide that all important helping hand, when its needed most, so we all benefit."
Notes to editors
Research was conducted on behalf of Legal & General by You Gov of 2.454 employed UK adults (either employed full or part-time or self-employed) between 27 - 30 March 2012.
* 27% of the estimated 3m is just over 0.8m.
Legal & General has recently launched a short-term income protection product called Lifestyle Cover, which provides a monthly benefit linked to the customer's income rather than to a specific mortgage or loan that pays a benefit for up to 12 months in the event the customer is not able to work due to accident, sickness or involuntary unemployment. The benefit being used to cover any outgoings the customer wishes. More details available at www.legalandgeneral.com/lifestylecover
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