Job Security Index shows job security for young workers is currently at its lowest level for 2012.
14 November 2012
Job security among 18 to 24 year olds fell from 82% at the start of the year to 76%
Legal & General's Job Security Index* reveals that job security among the young, that is those aged 18-24 has hit a low of 76%. The level of confidence for younger workers has steadily fallen from a high of 82% at the start of January 2012.
The quarterly Job Security Index has been tracking UK working adults' confidence in their job security quarterly since January 2012. While today's ONS** statistics showed a slight fall in unemployment among young workers aged between 16 and 24 to 20.7%, Legal & General's Job Security Index shows that the younger workers who are in work are less likely to be confident about their job security, than earlier in the year.
To view a chart showing the percentage of UK workers feel very or fairly confident about their job security since January 2012, split by age group click on the link on the right
However, it appears that some young workers are quite resourceful when it comes to using their skills to maintain an income should they be made redundant. A fifth (20%) of those aged between 18 and 24 said they have a part-time skill or hobby and would look to take it up full time to try and maintain their current lifestyle should they be made redundant. However, a further 23% also said that although they have a part-time skill or hobby, it wouldn't generate enough income to enable them to maintain their current lifestyle should they be made redundant.
Legal & General Investment Management's Fundamentals research*** which recently examined the UK labour market revealed that many of the new jobs being created are on a self-employed or part-time basis. Companies are understandably cautious about taking on new employees when the outlook is still uncertain. By taking on part-time workers they can build their business more gradually and this may help to explain the increased caution shown by UK younger workers.
Mark Holweger, Director of Legal & General's general insurance business said: "It's a tough environment for young workers at the moment. While previous ONS employment stats show that young unemployment rates have recently decreased, our Job Security Index shows that an increasing number of them, who are in work, are worried about their current job security.
It's important for people of all ages to consider the practical implications of unemployment, should it unfortunately happen to them. Having a back-up plan is great but unfortunately turning a part-time hobby into a full-time role that generates the same level of income isn't always the solution. Plus it can take time to generate sufficient income, which is where insurance cover is able to help offering dependable financial support."
Mark continued; "Also worryingly, there could potentially be a large proportion of the population who have no contingency plan at all. Our Job Security Index shows that three quarters (75%) of those UK adult workers aged between 18 and 24 do not have any insurance cover in place to help them with paying household bills if they were to lose their job. This is higher than the national average of 69%. While this could be due to a higher number of young people still living at home and so planning to rely on their family for financial support should they need it, this may not be a sustainable option in practice. As we never know what might be around the corner it's best to be fully prepared where possible."
Legal & General offers a 'short-term' income protection product, called Lifestyle Cover, which provides a monthly benefit for up to 12 months, which can help consumers to maintain their key regular expenditure, should they be unable to work due to accident, sickness or involuntary unemployment. Any consumers wanting more details may go to www.legalandgeneral.com/lifestyle, call 0800 197 2351 or contact their normal financial adviser.
Notes to editors
* The Legal & General Job Security Index is based on research conducted for Legal & General by YouGov of 2519 UK representative employed adults, either employed full or part-time or self-employed, over the period 28th September - 1st October 2012 including 218 respondents aged 18-24, 519 aged 25-34, 579 aged 35-44, 726 aged 45-54 and 477 aged 55+. Previous research has been conducted on behalf of Legal & General by You Gov as part of the Job Security Index of 2587 employed UK adults in January 2012, 2491 employed UK adults between, 27-30 March 2012, and 3,033 employed adults in July 2012. All surveys were carried out online. More details available on request.
*** Taken from Legal & General Investment Management's Fundamentals research, November 2012
Our Lifestyle Cover Insurance typically costs £3.90 a month for every £100 of monthly benefit. This is based on a 30-year-old customer choosing £700 of accident, sickness and unemployment monthly benefit with claims paid after a 30-day deferred period, back to day one of the claim. The cost of this insurance depends on a number of factors, such as your age, where you live and your occupation. As a result, the cost you will pay is based on your own circumstances.
The information contained in this release is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.legalandgeneral.com/lifestyle or by calling 0800 197 2351.We may record and monitor calls. Lines are open 9am - 8pm Monday to Thursday; 9am - 6pm Friday and 9am - 1pm Saturday and call charges may vary. Alternatively, consumers should speak to their insurance adviser to check they do have adequate cover in place
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