It’s too late. Every day thousands of people hear this and feel that sinking feeling when it becomes apparent that something they once had is no longer available to them. People with no savings, or less than two months’ wages in the bank (which is the majority of people working age), were able to purchase Income Protection insurance easily. They and their families can have financial security in the event of income loss due to Unemployment, Accidents or Sickness. It seems like people who were once considered to be the most reliable clients of financial and banking insurance companies are struggling to find coverage. These people have joined the ranks of those in the construction trades and estate agents that were among the first to be affected by the credit crunch. Now we are seeing the effects of the wider recession.
Individuals and families with little savings should act quickly to avoid their sector suffering the same fate. It is likely that they will be denied Income Protection Insurance and Mortgage Payment Protection Insurance in the near future.
Retail is responsible for one in ten UK jobs. It doesn’t take a genius or a lot of calculations to predict that the retail sector will experience significant job losses and contraction, especially if they are selling high-end items or discretionary goods. You can think of the negative news about furniture, kitchens and car sales as a downward trend. Even though most people are able to put off large purchases, particularly as the property-development frenzy of recent decades slows down,
Another area where managers are beginning to review their company’s redundancy terms is engineering. This could be the beginning of a series of difficult conversations with employees. They may soon find that they are joining their ex-employees who are looking for new work.
The majority of British citizens don’t have enough money to save. This has been an issue until now, as there were plenty of jobs. If you were not able to sign off on a permanent basis due to an injury or sickness, your time away from work is very short. What is the maximum time people can expect to be without work after Britain enters recession? Although everyone’s experience will be different, it is certain that any job search will be more difficult than last year.
6 Months to find another job
A ManPower specialist consultant, who requested anonymity, advised his white collar clients that they should consider a 2 – 3 month gap between jobs in the spring 2008. Now, he is saying that you should think about six months, or longer, and this will only be for temporary contracts. According to The Telegraph (10.0.08), there was a decline in full-time jobs in the UK. However, temporary vacancies are still high. Selection and interviewing for any job are more difficult and time-consuming than ever before. It is certain that it will not get easier, and there will be fierce competition for those few full-time jobs.
Avoiding financial meltdown
You can search the Internet for Income Protection and Lifestyle Protection (a very popular alternative name used by the Post Office, for example). Money Supermarket offers a price comparison and a buyer’s guide. If you are unable to accept the online quotations due to your occupation, it is possible to contact a specialist broker.