New workers being ‘trapped in low-paid, part-time work’

The average income of the self-employed in 2011, which is down from £16,100 in 2002

Millions of young first-time workers and women face becoming entrenched in temporary and low-paid jobs on the bottom level of an increasingly divided workforce, claim researchers.

Early signs of economic recovery have failed to prevent the emergence of a two-tier workforce with more than a third of jobs for new employees remaining part-time in 2013, according to the Resolution Foundation think tank.

The report, Low Pay Britain, due out later this week, suggests that millions of new workers have been consigned to precarious, poorly paid and part-time jobs with whole sectors of the economy – such as the hotel and restaurant industries – dominated by low pay.

Researchers at the foundation, which supports workers on low and middle incomes, said other struggling developed countries faced the same economic pressures as Britain but appeared to perform much better on the issue of low pay.

The report comes amid official concerns of a renewed housing bubble preventing the poorly paid from buying their own homes, while the  long-term employed reap the benefits of rising prices.

The report also highlighted growing struggles for the increasing numbers of self-employed, who have seen their average incomes slump from £16,100 in 2002 to £11,900 by 2011, during a period when the cost of living has increased.

Someone working full-time on the national minimum wage, currently of £6.19 an hour, would earn just more than £12,000 a year, according to the Joseph Rowntree Trust. Its analysis earlier this year found that a single person needed to earn at least £16,850 a year before tax to reach a minimum acceptable living standard.

The Resolution Foundation report suggested that more than two-thirds of hotel and restaurant workers earn less than the living wage – the threshold for a basic standard of living, while in retail the proportion stands at 39  per cent.

The Prime Minister has supported the idea of the living wage and Labour leader Ed Miliband has said that he plans to make it central to his party’s work, with Whitehall contracts only awarded to those companies that paid it to their lowest workers.

It currently stands at £7.45 an hour outside of London, rising to £8.55 for those in the capital, where the Mayor, Boris Johnson, said that paying the living wage was “morally right” and made good business sense.

While the number of jobs has increased, the UK economy still produces 3 per cent less than it did five years ago. The Governor of the Bank of England, Mark Carney, said last week that an economic recovery appeared broad-based and was set to continue but he warned there would be bumps in the road ahead.

Matthew Whittaker, senior economist at the Resolution Foundation, said: “Jobs growth is welcome news and hailed by many as a sign of economic recovery.

“But this may conceal a worrying scenario in which the two-tier workforce we’ve seen developing became an established feature on  the landscape.”

The group said that women appeared to be hardest hit as the country emerged from recession with women making up three million of the five million low-paid workers.

Start your day with The Independent, sign up for daily news emails
Voices
There will be a chance to bid for a rare example of the SAS Diary, collated by a former member of the regiment in the aftermath of World War II but only published – in a limited run of just 5,000 – in 2011
charity appealTime is running out to secure your favourite lot as our auction closes at 2pm tomorrow
Arts and Entertainment
Mark Wright has won The Apprentice 2014
tvThe Apprentice 2014 final
News
File: James Woods attends the 52nd New York Film Festival at Walter Reade Theater on September 27, 2014
peopleActor was tweeting in wake of NYPD police shooting
Arts and Entertainment
X Factor winner Ben Haenow has scored his first Christmas number one
music
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Telesales & Customer Service Executives - Outbound & Inbound

£7 - £9 per hour: Recruitment Genius: Are you outgoing? Do you want to work in...

Recruitment Genius: National Account Manager / Key Account Sales

£30000 - £35000 per annum: Recruitment Genius: An opportunity has arisen for a...

Recruitment Genius: Operations Manager

£30000 - £35000 per annum: Recruitment Genius: An exciting opportunity to join...

Recruitment Genius: Recruitment Consultant

£30000 - £35000 per annum: Recruitment Genius: We have an excellent role for a...

Day In a Page

The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'
Marian Keyes: The author on her pre-approved Christmas, true love's parking implications and living in the moment

Marian Keyes

The author on her pre-approved Christmas, true love's parking implications and living in the moment
Bill Granger recipes: Our chef creates an Italian-inspired fish feast for Christmas Eve

Bill Granger's Christmas Eve fish feast

Bill's Italian friends introduced him to the Roman Catholic custom of a lavish fish supper on Christmas Eve. Here, he gives the tradition his own spin…
Liverpool vs Arsenal: Brendan Rodgers is fighting for his reputation

Rodgers fights for his reputation

Liverpool manager tries to stay on his feet despite waves of criticism
Amir Khan: 'The Taliban can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'

Amir Khan attacks the Taliban

'They can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'
Michael Calvin: Sepp Blatter is my man of the year in sport. Bring on 2015, quick

Michael Calvin's Last Word

Sepp Blatter is my man of the year in sport. Bring on 2015, quick