More and more millennials are at risk of losing their jobs, after it was revealed that this group of workers is particularly vulnerable to redundancies.
The Office for National Statistics’ recent findings show the redundancy rate is on the rise, reaching 4.6 per 1,000 employees between June and August this year. While this is not as steep as 2009’s peak of 12.2 per 1,000 workers, it is still higher than figures between February and April 2016 (3.8 per 1,000 staff members).
Head of protection at Royal London Debbie Kennedy noted “redundancies are at the highest level for two years”.
She therefore advised: “It is vital even for those with seemingly secure jobs to plan for the unexpected and ensure they are protected.”
As millennials have been in their jobs for the least amount of time, they are more likely to be axed ahead of longer-term employees and those with lots more experience.
According to Royal London, employees who are made redundant may have to spend as much of £7,000 of their savings in the time it takes to find another job, with men in their 30s spending an average of £457.03 per week.
As statutory redundancy pay is a maximum of £479 for each year worked, this amounts to a total of £1,437 for three years, which is the typical length of time a millennial stays in their job. Those who have had the role for less than two years do not receive statutory redundancy pay, which could put many young people in serious financial risk if they lose their jobs.
Employers should also carefully consider who they make redundant if they have to lose a member of staff. Not only are younger employees likely to be entitled to less statutory redundancy pay due to their short length of time at the company, this could also create a big generation gap in the workforce. Businesses may find over time that this leaves them short of fresh ideas and they struggle to contend with their competitors.
For equality and diversity training, come visit us here.