The Statistics Behind Redundancy

The Statistics Behind Redundancy

No one likes to talk about the ‘R’ word.   Through my role at McGinnis Loy I get to meet all types of job seekers, and those who tell me they have been made redundant are just some of the near 500,000 who have been affected so far this year.

There will be a number who have been made redundant that will use their entrepreneurial spirit and set up a new business in some way or another, but for everyone else, how are they are going to find their next role ?

 

Three or four years ago the majority of candidates that I asked ‘What is the reason for leaving your last job ?’ would have said greater career progression and a role to take their career forward.  By contrast, in the last one to two years, most have not even left of their own accord – they have been made redundant.  This shift has had a real financial and emotional strain, to the point that a number of people have said to me: ‘if you can find me a job paying more than job seekers allowance, then I will be happy with that’.  Whilst this may only be a small number, it does beg the question how many other people are thinking it but not telling anyone ?

 

Having digested the recent figures from the Office Of National Statistics, below are some interesting facts about what the numbers tell us.  I am not going to debate or dissect the positives / negatives here (please leave me your comments below), but they are certain to create healthy debate.

 

Acknowledgement is given to the Office Of National Statistics for allowing me to use this data, which relates to the most recent figures up to Sept 2010 (Source: ONS Labour Force Survey).  I only give a small snapshot of what they show as I am no macroeconomic analyst, but if you click the link here you can see all of the categories I talk about, and find data going back to 1997.

 

Number of Redundancies

• 157,000 people were made redundant July – Sept 2010 (Q3)

• 213,000 people were made redundant July – Sept 2009 (Q3)

• 164,000 people were made redundant July – Sept 2008 (Q3)

 

Male/Female Redundancy Ratio

• Of the 157,000 in Q3 2010, 64% were men and 35% women

• Of the 213,000 in Q3 2009, 67% were men and 33% women

• Of the 164,000 in Q3 2008, 60% were men and 40% women

 

Redundancy Breakdown By Age

• For Q3 2010, 18.8% were 16-24yr olds, 20.8% were 25-34 yr olds, 32.6% were 35-49 yr olds and 27.8% were over 50.

• For Q3 2009, 18.9% were 16-24yr olds, 20.3% were 25-34 yr olds, 31.3% were 35-49 yr olds and 29.5% were over 50.

• For Q3 2008, 24.9% were 16-24yr olds, 18.8% were 25-34 yr olds, 33.8% were 35-49 yr olds and 22.5% were over 50.

 

Regional Spread Of Redundancies

• Q3 2010: most redundancies were in East England followed by Wales, the North West then East Midlands

• Q3 2009: most redundancies were in the North East followed by London, the East Midlands then North West

• Q3 2008: most redundancies were in London followed by Yorkshire/The Humber, the North West then East Midlands

 

Redundancy Breakdown By Industry

Of the Industry sectors covered in the survey:

• For Q3 2010, most redundancies were in the Public Administration, Education and Health sector. Fewest redundancies were in Construction.

• For Q3 2009, most redundancies were in Manufacturing. Fewest redundancies were in the Public Admin, Education and Health sector

• For Q3 2008, most redundancies were in Construction, and fewest in the Public Admin, Education and Health sector.

 

If you find yourself out of work currently because of redundancy, or you know you are about to be made redundant, you are certainly not alone as these figures demonstrate.  The ONS report shows that 659,000 people were made redundant in the whole of 2008 and 937,000 people in 2009.  Without Q4 figures, we are up to 473,000 for 2010 so far (to Sept 2010).  I hope the posts here on Approachthemarket.co.uk will help everyone who is looking for a new job due to redundancy, and there are a whole host of topics we cover to help you through the job hunting process.

 

Best Wishes

Leslie Fearn

 

Leslie has over 15 years Recruitment experience helping blue-chip corporates to SME businesses recruit for their Finance teams.  As one of the founding Directors of McGinnis Loy, a Specialist HR and Finance Recruiter across the Thames Valley and London, he is still actively recruiting in the marketplace today.  Follow his helpful tweets on Twitter: @McGinnisLoy

 

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