The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Tuesday, 12 November

Jobs Paying Less Than The Real Living Wage Drops To Seven-Year Low

KPMG analysis has shown there has been a drop in the number of people being paid below the Real Living Wage

Less than one-fifth (19%) of UK jobs now pay below the Real Living Wage (as defined by the Living Wage Foundation), with the latest estimate down from 22% last year and the lowest since 2012 according to KPMG analysis released on November 4.

However, part-time workers are three times more likely to be paid below the threshold of £9.00 (or £10.55 in London) and around 24% of women face in-work poverty compared to 15% of men. Female in-work poverty is highest in the East Midlands and lowest in Scotland.

The good news is that all UK regions have shown a drop in the share of jobs paying below the Real Living Wage.

The analysis also shows that despite a backward trend last year, the latest figures are the lowest for seven years and represents - the number of jobs paid less than the Real Living Wage now stands at an estimated 5.19 million, down from a peak of 5.75 million in 2018.

 

Part-timers

IHS Markit was commissioned by KPMG to conduct the research.

A closer look at the findings reveals that there is still a long way to go for part-time workers. Around 38 per cent of part-time jobs earn less than the Real Living Wage, compared to only 12 per cent for full-time employees. London is a particular hotspot for part-time jobs that are paid less than the Real Living Wage (46 per cent).

 

Gender equality

On gender equality, the proportion of female employees earning less than the Real Living Wage (24 per cent) exceeds that for males (15 per cent). This equates to around 3.2 million female employees compared to 2 million males. By region, the proportion of females earning less than the threshold is highest in the East Midlands (29 per cent) and lowest in Scotland (20 per cent).

Female part-time staff make up the largest broad category of jobs paid less than the Real Living Wage, which is an estimated 2.1 million employees and therefore accounts for around 40% of all in-work poverty.

 

Good for business

Commenting on the findings, James Stewart, Vice Chair of KPMG UK, said: “The Brexit impasse has undoubtedly had an impact on the jobs market and it is clear that employers have stepped up and taken decisive action to retain and motivate their workforces.

“Over the coming period of uncertainty productivity will be key and we know that the Real Living Wage is an effective driver. What’s good for our workers is good for business too and there is a real opportunity for many to look at the remuneration of their staff in terms of overall benefit to their business as well as the bottom-line."

Stewart added: “But we must ensure that part time workers are not left behind – as these figures show, well over a third are not benefiting from the Real Living Wage. There are also far too many women who are not benefiting from these changes and over the coming year we must address this and the regional disparities which still exist.”

 

Living Wage Foundation

Katherine Chapman, Director of the Living Wage Foundation, added: “We know the campaign for a Real Living Wage has had a huge impact in tackling in-work poverty. Over the last year we’ve seen more and more responsible organisations recognise that a Real Living Wage is not only good for workers and their families but it also makes good business sense. However, with over 5 million workers still paid below the Living Wage – and 24% of women compared to 15% of men - it’s clear we need to see more employers step up and commit to pay a Real Living Wage.”

Picture: KPMG analysis has shown there has been a drop in the number of people being paid below the Real Living Wage - but there is still a disparity between men and women and part-timers and full-timers.

Article written by Brian Shillibeer

Share



Related Articles

Work Insecurity - Living Hours Campaign Launched

The Living Wage Foundation has launched Living Hours, a new programme to tackle the widespread insecurity many 'employees' suffer over hours they might get to...

 Read Full Article
Heading Down A Different Path Towards Diversity

CEOs from 32 of the country’s leading energy and utilities employers have launched a Sector Inclusion Commitment - a long-term commitment to attract more diverse...

 Read Full Article
Come On You Irons - Hammer's Home Scores On Living Wage Goal

Revised (Real) Living Wage rates have been launched at events across the UK this week as the National hourly rate went up 25p to £9 per hour, and up 35p in London...

 Read Full Article
Security Smorgasbord - Springfields Nuclear And IKEA Contracts Won

Mitie’s security business has secured contracts with IKEA and Springfields. The contracts together are worth £5 million per annum. The new contract with...

 Read Full Article
Better Than Min On Road To Real

Working in partnership with the GMB, Securitas UK has introduced a minimum wage of £8.03 for security officers, twenty pence higher than the National Minimum Wage...

 Read Full Article
Living Wage Champions Recognised At Awards

The annual Living Wage Champion Awards have been delivered - including those from the cleaning sector. We've got the full list of the large and small organisations...

 Read Full Article
Poor Pay Packs Punch In England's East

441,950 East Of England residents in employment earned less than the real living wage of £9.00 per hour in the year to April 2018 a new GMB study has shown. The...

 Read Full Article
RICS Quals Earn The Big Bucks & Gender Pay Gap Closing

A 39% higher salary – that's the effect a RICS qualification has on average pay in the real estate and built environment sector says our survey. This is just...

 Read Full Article
Government Departments In Disarray As Migrant Workers Add To Brexit Woes

With the Government already in disarray over more Brexit drama, striking workers brought fresh disruption to the corridors of power on January 22 in fight for the living...

 Read Full Article
Fireworks Night And Real Living Wage Rockets

November 5, saw the Living Wage Foundation announce a new UK Living Wage hourly rate of £9 per hour, an increase of 25p per hour. And London Mayor, Sadiq Khan...

 Read Full Article