Aussies fear for jobs should looming recession hit

Quick Research findings The omnibus research conducted in the first quarter of 2008 showed that 91% of Australians are most concerned by rising grocery and petrol prices. "This research unearthed growing fears about job security and shows that people are beginning to feel their lifestyle and financial stability could now be under greater threat," FPA chief executive officer Jo-Anne Bloch said.

Research conducted by the Financial Planning Association (FPA) shows that 69% of Australians are fearful of the impact a recession could have on their job security.

"Obtaining financial advice and developing an ongoing relationship with a financial planner can help Australians ride out volatile financial cycles," Jo-Anne Bloch said.

"Three in ten Australians currently use the services of a financial planner and are in a better position to make informed decisions in a challenging environment.

"The fear of recession is widespread with levels of unease similar across all demographics, regardless of age, location or income, and is present both among workers and non-workers," Ms Bloch said.

"People with long term financial plans in place and relationships with financial planners can see past these cycles. There is measurable value in getting good financial advice to protect your family."

The omnibus research revealed that in some cases investors with an ongoing relationship with a financial planner have capitalised on recent share market volatility and purchased shares (10%).

"Market volatility is spooking younger investors whereas older ones, who are more likely to have a financial planning relationship and longer term plans, though worried are less likely to change tack when markets fall," Ms Bloch said.

75% of Australians who have exposure to equity (either directly or through superannuation) have decided to sit tight and ride out the volatility in the Australian share market.

Survey results
The FPA Financial Planning in a Volatile Economic Environment Report was conducted by Galaxy Research. The national poll canvassed over 1,100 respondents aged 16 or over

Overall concern about the impact of recession on job security
1. Extremely concerned (11%)
2. Very concerned (25%)
3. Quite concerned (33%)
4. Not concerned (29%)
5. None / Don't know (1%)

Workers concern re job security in event of recession
1. Full Time Workers (70%)
2. Part Time Workers (66%)
3. Non Workers (71%)

Overall concern about impact of rising consumer goods prices (inflation)
1. Extremely concerned (24%)
2. Very concerned (35%)
3. Quite concerned (32%)
4. Not concerned (9%)

Australians use of a Financial Planner
1. Have an ongoing relationship with regular plan reviews (13%)
2. Have an occasional relationship, going for a specific purpose (17%)
3. Have used in the past but no longer continue to do so (13%)
4. Have never used (56%)
5. None / Don't know (1%)

The Financial Planning Association of Australia (FPA) is the peak professional body for Australia's financial planners, representing approximately 12,000 individuals and businesses.