By Daniel Hunter
The latest Legal & General Job Security Index shows that job confidence across the UK is at the highest level it’s been during 2012, with 78% of UK working adults saying that their job is secure, a rise of 5% from the previous high of 73% in April 2012.
The mood of UK working adults appears to be one of increasing confidence this quarter. There is a similar rise in job security confidence for part-time working adults, with a 5% increase from last quarter, 68% to 73% this quarter. In addition, a third (33%) of all working adults said they aren’t looking for another job because their current job is secure, a 4% increase when compared with 29% who said that they weren’t looking for the same reason last quarter. This confidence is particularly strong in Scotland with 39% of workers not actively looking for a new job because they believe their job is secure.
This sentiment of increased confidence is mirrored in this quarter’s ONS statistics which show that the level of unemployment in the UK has gone down by 50,000 to 2.53million people this quarter. According to Legal & General’s Job Security Index, only 4% of working adults currently believe that they are at risk of redundancy and just 7% of working adults admitted that they are searching for a more stable job, because they want better employment security, slightly down from 8% in July.
Despite this rise in confidence, the Job Security Index, which is based on research conducted by YouGov, reveals that some UK working adults could have a back-up plan in place should they lose their job. Nearly a fifth (18%) of working adults have a part-time skill or hobby which they would look to take up full-time to maintain their lifestyle, should they lose their current job - this is 16% of full-time UK working adults and 21% of part-time UK working adults.
With one in five, (20%) working men confident their part-time interests could become full-time jobs and generate enough money to maintain their current lifestyle, this suggests that they could be particularly good at planning ahead in the event of unemployment. This compares to 15% of all working adult women.
Londoners and people living in Wales are among the most resourceful adult workers when it comes to their hobbies for the regions we investigated. More than a fifth, (22%) of working Londoners have a skill or hobby from which they would look to generate a full-time income if they lost their job, and 19% of people living in Wales who work, would do the same. Scots and those living in Birmingham were less likely to look to use a part-time hobby as a back-up plan with just 14% of adult workers in these regions confident their hobby or skills could earn them a full-time income if they were to lose their job.
“It’s great news to know that working adults are feeling more confident about their current job security and that some are still planning ahead and thinking about how they would cope should things take a turn for the worse," Mark Holweger, Director of Legal & General’s general insurance business said.
"It’s important for people to consider the practical implications of unemployment, should it unfortunately happen. 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 can take time. Worryingly there could potentially be a large proportion of population who have no contingency plan at all. Meanwhile, money to cover daily living costs such as household bills and mortgage or rent payments is still needed, so it’s important to have a plan in place to cover on-going household finances. Unfortunately our Job Security Index shows that 69% of UK working adults do not have any insurance cover in place to help them with paying household bills if they were to lose their job. This has been consistent throughout 2012 and although job confidence is currently high, it’s best to be prepared and have a back-up in place that includes insurance cover which then would mean those on-going household expenses are covered. We never know what might be around the corner it’s best to be prepared where possible.”
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