Job security in the UK has reached an 18 month high, according to research released by Lloyds TSB.

In February, the bank surveyed more than 2,000 people across the UK and discovered that 22% of consumers believed that their job security was more positive than last year.

The balance – the percentage of consumers positive about their job security minus the negative replies – rose to +1% from -1% the previous month and -3% in December. This is the highest level since July 2005 and well above the 12 month average of -2.4%.

Lloyds TSB Corporate’s chief economist Trevor Williams said: “On the back of continuing solid economic growth, consumers are regaining confidence in the security of their jobs and the UK employment market in general.

“Recent unemployment data has also been supportive,” he added. “The number of people claiming jobless benefits is down by 34,000 in the past four months and the unemployment rate is back at 2.9% and could fall further.”

The research also discovered that consumers are more optimistic about interest rates this year with 6% believing rates will be lower in 12 months, a rise of 1% - the highest since May.

There was also a modest improvement in consumer price expectations with more people believing prices will be lower this time next year with the balance falling to 71% from 75% in January.

The move will reassure consumers and contribute to the lasting health of the housing market, with a good supply of people able to buy or move home, according to Williams. “We will also see this reflected in consumer spending, suggesting that the overall outlook for coming months continues to be positive, even if the predicted interest rate increase appears,” he added.