Are you 'horrified' of losing your job?

Even though unemployment rates recently dropped to 5.3%, the disruption of traditional workplace structures is clearly having an impact on the psyche of Australians, according to Rod Attrill, general manager of banking at comparethemarket.com.au.

A new national study has revealed that 4.8 million Australians feel little job security, which is mainly caused by concerns about change in the workplace.

Deloitte Access Economics together with comparethemarket.com.au have released a new report which tested 3,000 Australians’ belief in their ability to influence their financial outcomes, their willingness and sophistication to make a change to improve their financial wellbeing, and how secure they feel (both now and in the future).

The Financial Consciousness Index revealed that 38% of Australians worry about, or feel very little, job security.

In particular, younger generations and those earning below the average wage are the most concerned, with almost half (47%) of those earning below $70,000 and 42% of millennials feeling insecure in their current job roles.

Attrill added that because a third of us feel insecure about the future of our current position it means not enough is being done to address this shifting structure.

“Job security is crucial to person’s financial wellness, and can therefore cause a lot of stress for people who worry about being out of work, especially without the savings or financial safety blanket to fall back on,” said Attrill.

“With ballooning mortgages to pay, bills to worry about, and ever-increasing grocery costs, our Index revealed many Aussies just don’t have the savings to be without an income for more than three months, and some would resort to relying on government benefits.”

The report found that change was the leading factor causing Aussies to worry about their job future, with 39% of respondents fearing that the changing workplace structure will leave them unemployed.

According to Deloitte Australia, it is a combination of several external factors – demographic change, globalisation, digital disruption, and changing social values and worker expectations – currently at play that is radically changing workplace structures and business models.

More than a third (36%) felt insecure in their current jobs as they were in a casual or part-time position and were trying to find a permanent role, while a further 30% fear redundancy. Interestingly, a quarter (24%) worry that broader economic conditions could impact their employment.

Moreover, if they were to fall out of work, 30% of Australians do not have enough saved to cover them for more than three months.

This was highest for those in the NT (35% of respondents), and the mining states of QLD (35%) and WA (33%). A third (33%) of all Aussies would have to rely on government benefits if they suddenly found themselves out of work.