Fear of redundancy continues despite low unemployment
Young people under the age of 25 are consistently the most concerned
Older workers (over 55) are less concerned about redundancy than at any time before
Londoners are most fearful of redundancy
Penna Sanders & Sidney, the UK career consultancy, has today published the first Penna Fear of Redundancy Index (from now referred to as Penna Index).
Since 1999 over 2,000 people per month have been interviewed by MORI about how fearful they are of being made redundant.
The Penna Index shows that the fear of redundancy increased from 80 in August 2002 to 93 in February 2003 when concern about the impact of the Gulf war was high. The figures though fell for March and April 2003 with the Penna Index at 87, mirroring the decrease in the proportion of those claiming to be unemployed and possibly reflecting relief that the war has had a lesser impact than anticipated.
Bill McCarthy, Managing Director ñ Career Consulting at Penna Sanders & Sidney, comments: ìRedundancy has become much more of a fact of life these days and it has also lost its stigma. In times of a strong economy and high employment, people believe that even if they are made redundant they will be able to bounce back quickly. But, if the economy is uncertain individuals place more and more importance on the security of their job.î
The highest level of anxiety was recorded in February 2000 when the Penna Index hit 105. The subsequent decline to August 2002 mirrors the strong employment market. However, in the last quarter of 2002, the Office of National Statistics shows that reemployment rates following redundancy have begun to decline, dropping 2.3%.
ìEmployers have to recognise that if their people are anxious about redundancy this will affect their productivity and focus at work ñ and sometimes when there is no good reason. Whilst, in this economic climate no employer can guarantee job security, having a clear communication strategy can substantially reduce anxiety about redundancy and related stress,î continues Bill McCarthy.
Young adults most concerned
Young adults under the age of 25 are consistently the most concerned.
ìThey are the most vulnerable age group and can suffer from the last in, first out rule of redundancy. It is also likely that whilst aware of redundancy, they will not have any direct experience of it themselves ñ so thereís the fear of the unknown,î comments Bill McCarthy.
A research project conducted by Penna Sanders & Sidney in 2001 Redefining Redundancy showed that only 56% of people under 30 knew someone who was made redundant. This is compared to 81% of older workers (55-64).
These older workers are less concerned than at any time before. ìOlder adults are most likely to be debt free, having paid off their mortgages, and many will have final salary pensions or be relying on early retirement,î says Bill McCarthy. ìHowever, the majority of employers are no longer offering these packages, pension pots have been severely hit, and the likelihood of pensions being able to support this age group for the next 20 years is unlikely.î
Londoners most concerned
Regionally, Londoners are the most concerned about redundancy. People working in the North of England are also anxious. Concern amongst people in Scotland is slightly above average, while the South East and the South West are consistently below average.
Penna ëFear of Redundancyí Index
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