- More than a fifth of workers (21.3 percent) were considered low-paid in 2010
Fewer than one in 10 workers now work in low-paid jobs, official figures show, suggesting Britain is increasingly a nation of middle earners.
Just 8.9 percent of UK jobs pay an hourly rate less than two-thirds of the average – the lowest level since 1997.
In 2010, when Labor was last in power, more than a fifth of workers (21.3 percent) were considered low-paid.
Increases in the national minimum wage – and especially the introduction of the national living wage by then Chancellor George Osborne eight years ago – have since provided a major boost to wages.
Nye Cominetti, an economist at the Resolution Foundation think tank, said: ‘When it comes to hourly wages, the pattern is very clear: the minimum wage has led to much faster wage growth for low earners, especially since 2015.’
Fewer than one in 10 workers are now in low-paid jobs, official figures show, suggesting Britain is increasingly a nation of middle earners (Stock Image)
The share of low-paid jobs fell from 10.7 percent in 2022, according to figures from the Office for National Statistics.
At the same time, there was a slight decline in the number of high-paying jobs – jobs that paid 1.5 times the average, from 23.8 percent of last year’s total to 23.4 percent.
Mr Cominetti said this was partly due to more well-paid workers turning to self-employment to reduce their tax bills.
“Britain has a bulging middle segment as the share of both high- and low-paid workers continues to fall,” he added.
The ONS said the fall in the share of low-paid jobs came as the national living wage and national minimum wage rose earlier this year. The decline in the number of low-paid jobs using a different measure – weekly wages – was less pronounced but still significant. They represented 23.1 percent of the working population, compared to 24.7 percent last year and 28.7 percent in 2010.
The share of low-paid jobs has fallen from 10.7 percent in 2022, figures from the Office for National Statistics show (Stock Image)
The difference between the figures based on hourly and weekly wages suggests that while wages may have increased, people are working fewer hours per week. One interpretation could be that employers are cutting hours because they have to pay more per hour.
Business Secretary Kevin Hollinrake said: ‘This Government and employers are improving the lives of our lowest-paid workers across the country, as these statistics show, creating more jobs and boosting the economy. We firmly support the British people in ensuring they are paid fairly for their hard work.”
Business Secretary Kevin Hollinrake said: ‘This government and employers are improving the lives of our lowest-paid workers across the country, as these statistics show, creating more jobs and boosting the economy. We firmly support the British people to ensure they are paid fairly for their hard work.”
It appears the Bank of England will keep interest rates at 5.25 percent today amid fears Britain could enter a recession.
The Bank of England has raised interest rates 14 times since December 2021 in a bid to curb skyrocketing inflation, which peaked at 11.1 percent last year.
Mike Riddell of Allianz Global Investors said: ‘Economic activity appears to have slowed further, the housing market is weaker, consumer spending is falling and inflationary pressures are showing further signs of easing.’