So many people in the UK rely on their jobs to ensure their finances remain stable that a third of Brits would not have enough money to survive the month if they found themselves in unemployment.
According to AA Financial Services’ research, 36 per cent of adults say they would be in financial arrears within a few weeks if they were to be sacked tomorrow. For those who rent their homes, this rises to 51 per cent, reported Money Age.
This is the result of the savings ratio being at a near record low, with Brits typically spending more than they take home. Indeed, nearly a third of Brits borrowed money to pay for Christmas, and a fifth of these people put more than half the cost on their credit cards.
James Fairclough, director of AA Financial Services, said: “It’s concerning that so many people in the UK would not be able to maintain their lifestyle and provide for their families beyond a month should their circumstances change suddenly.”
He went on to say: “This safety net is an essential part of being able to plan and stay on top of finances, and is key to minimising any anxieties people may have about their future.”
The research found that 36 per cent of adults intend to save more this year, with 27 per cent saying they will do this by cutting back on luxuries and a fifth planning to get rid of their credit cards entirely.
This study emphasises the importance of finding a secure and steady job, so that workers can rely on a steady income without worrying they might not get a wage next month.
Following the release of the most recent employment rate, this could become more of a reality, as it revealed more Brits are currently in a job than ever before.
The Department for Work and Pensions’ report showed the employment rate had reached 76.3 per cent, making it the highest since records began in the 1970s.
At the same time, the unemployment rate has fallen to its lowest level in over 40 years, meaning Brits who worry their job is vulnerable can feel slightly relieved that it will not be too difficult to find another one if they should lose theirs.
Mims Davies, minister for employment, commented on the high employment rate, saying: “It means at the dawn of the decade, the opportunities to progress in work are out there, with people already benefiting from another month of rising wages.”
Indeed, the figures showed that wage growth had outpaced inflation for the 22nd month in a row, which also takes the pressure off employees who rely on their income to pay their bills every month.
Ms Davies went on to say: “With unemployment at its lowest since the 1970s, our jobcentres go beyond getting people into work – they are about community and progression. Reaching out to more people, and supporting those in work to get ahead.”
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