Jessica O'ConnorAs the unemployment rate hits 4.4% – the highest rate since 2021 – data from Best Insurance revealed that workers are growing increasingly concerned about their job security over the next 12 months.
Best Insurance surveyed 2,000 adults in February and March 2025 and discovered that one in four (26%) were concerned they will lose their job in the next year.
Among Gen Z this increased to almost half (46%), with a third of these – one in nine (11%) overall – stating that they were ‘very concerned’.
In comparison, just 3% of 55 to 64-year-olds had the same concerns.
The data suggested there could be good reason for concern amongst younger people, as 60% of Gen Z workers said they knew at least one person who has lost their job in the past year, while 6% lost a job themselves.
However, just one in four (26%) 55 to 64-year-olds knew someone who has lost their job in the past 12 months and just 2% have lost their own.
Best Insurance’s research also revealed a marked difference across the UK when it comes to the level of concern about job security, with Londoners the most worried.
Four in 10 (41%) of those living in the capital said they are worried they may lose their job in the next 12 months – a third of them (11% overall) were ‘very worried’.
In comparison, just 16% of workers in the East of England had concerns about their job security, and only 4% were ‘very worried’.
This regional pattern was supported by Best Insurance’s own claims data which showed that IT and financial services – sectors where jobs are heavily concentrated in London – as the industries with the most unemployment insurance claims in Q1 2025.
Kesh Thukaram, co-founder at Best Insurance, said: “Research from the Financial Conduct Authority (FCA) suggests that 30% of UK adults have no savings, and with unemployment levels on the rise, financial protection to cover job loss is more critical than ever.
“Unemployment insurance has for many years been part of a wider accident, sickness, unemployment policy, but there is clearly a demand for a separate unemployment product, so we have taken the decision to relaunch standalone unemployment cover as there is clearly demand.
“We are also the only UK distributor to offer customers the choice of purchasing insurance policies entirely via WhatsApp as well as by phone and online.”
Best Insurance’s data showed that young adults – especially Gen Z – preferred lower benefit periods which also makes the product more affordable.
In response, Best Insurance has launched a six-month benefit period option in addition to the 12-month option.
Thukaram added: “Our standalone unemployment Insurance provides policyholders with tax-free monthly payments if they lose their job through no fault of their own.
“This support helps ease financial worries, allowing them to focus on what truly matters—finding the right job.
“With an unemployment protection policy, essential expenses like mortgage or rent payments, energy bills, loan repayments, and even groceries are covered, offering peace of mind during difficult times.”
