Four out of 10 men saving in case they lose their job

The latest MoneyMood Survey from Legal & General shows a marked increase in the number of men who say they're saving "in case I lose my job", rising to four out of ten men (40 per cent) in August.

Although the percentage of men who say they are in the mood to save has fallen over the same period to 56 per cent (59 per cent in 2009), of those who say they are saving, 40 per cent of men selected the answer ‘In case you lose your job' when asked what they were thinking of saving for.  This is 10 per cent up on the figure recorded six months earlier in February (36 per cent).

A much lower percentage of women (25 per cent) selected ‘in case you lose your job' in the August survey, unchanged from February (25 per cent).

A North South divide has emerged.

The regional breakdown shows Northern Britain is showing a significant increase while London, which has the highest figure across each survey, is only slightly up (see chart below);

London = 45 per cent (42 per cent)

Northern Counties (Yorks. & Humbs. NW and NE) = 41 per cent (19 per cent)

And Scotland = 25 per cent (17 per cent)

Southern England and Wales and the Midlands show a small fall over the last six months.

Southern counties (SE and SW) = 29 per cent (32 per cent)

Wales and the Midlands (Wales, E Anglia and Mids.) = 27 per cent (29 per cent)

Commenting on these findings Mark Gregory, Legal & General Executive Director Savings said; "It's not surprising that the focus of saving is turning to meeting short term needs, such as saving in case you lose your job. The UK saw a fall in unemployment of 0.1 per cent in the three months to May (figures published in July by The Office of National Statistics). However, much of the reduction is attributed to hiring for temporary employment. The ONS said in July that the percentage of workers in part-time jobs was the highest since records began in 1992.  There may also be fears over jobs in the public sector, particularly in the North. Several commentators have pointed to the fact that private sector hiring is unlikely to increase strongly enough to offset expected public sector job losses in coming months."

Mark added: "It would seem concern over losing your job has become one of the key reasons for men to save rather than spend. Interestingly the increase is largest among the 25 to 34 age group, which may suggest that younger employees are feeling less secure than those who may have worked in their job for longer. Men over 45 also show an increase in wanting to save in case they lose their job."