By Daniel Hunter
Ahead of tomorrow’s (Wednesday) Office of National Statistics (ONS) employment stats, 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 last month’s ONS statistics showed a fall in unemployment among young workers, 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.
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.
“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," Mark Holweger, Director of Legal & General’s general insurance business said.
"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.
“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.”
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