Race Inequality in the Workforce: Analysing the state of play in the coronavirus economy
The impact of Covid-19 on the labour market has affected specific groups of workers more than others, including those with an ethnic minority background. In this new report, we explore evidence that shows the specific impact that the pandemic has had on Black and ethnic minority workers, demonstrating the ways in which they face a range of additional risks during the economic downturn, in terms of both loss of employment and poorer quality work.
The report makes 11 recommendations for government and employers to ensure that job quality is protected for all and that groups at particular risk are safeguarded.
This short report complements our Good Work for Wellbeing in the Coronavirus Economy report which was launched last month. It seeks to understand how we can ensure the best possible jobs recovery and achieve good work for all in the coronavirus economy.
You can read Race Inequality in the Workforce: Analysing the state of play in the coronavirus economy here.
You can read Good Work for Wellbeing in the Coronavirus Economy here.
Join the conversation on Twitter @CarnegieUKTrust or please feel free to get in touch via Georgina Bowyer, Policy and Development Officer (georgina@carnegieuk.org).
Millions of jobs will continue to be supported over the winter months with the UK government’s Job Support Scheme (JSS) available to businesses across the UK from Sunday, 1 November.
combined with the Job Retention Bonus (JRB), the Job Support Scheme (JSS) will cover at least 95% of the total employment costs for average previously furloughed employee until February
when factoring in the JRB analysis shows employers will receive the full employment costs of around half of people on JSS Open – which is available to businesses across all parts of the UK from Sunday
data shows the Coronavirus Job Retention Scheme (CJRS) has successfully protected jobs – with 90% of people returning to the same job after being furloughed
It comes as analysis reveals the generosity of the government’s income support schemes – with many firms receiving the full employment costs of staff.
Chancellor of the Exchequer, Rishi Sunak, said: “I’m pleased that the IMF this week called our response to the pandemic one of the best examples of coordinated action globally – the furlough scheme has been central to that, supporting 9.6 million jobs through some of the most challenging economic times.
“But it’s right that as we move towards a more targeted approach to tackle the virus, our support becomes more targeted too.
“The Jobs Support Scheme will continue to protect jobs throughout the difficult months ahead and is part of our comprehensive Plan for Jobs.”
The JSS scheme launches on Sunday and is designed to support businesses across the whole of the UK who are either legally required to close or facing lower demand over the winter months.
Under the JSS Open part of the scheme, which was made more generous last week, the government contributes 62% towards the wages of staff for the hours they do not work, whilst the employers pay just 5% plus NICS and pensions contributions. Employees receive a minimum of 73% of their wages.
Under JSS Closed, which is for businesses legally required to close due to coronavirus restrictions, the government will pay two thirds of each employees’ salary with employers just covering NICs and pension contributions, a very small proportion of overall employment costs.
Firms who retain staff that have previously been furloughed until the end of January will also receive a £1,000 per eligible employee payment under the JRB.
Taken together, the two schemes (JSSO and JRB) will cover 95% of the employment costs of the average previously furloughed employee until the end of January. For those earning less than £1,100 per month the JRB offsets all the employer costs of the JSS Open– meaning businesses will not have to make any contributions. Under the original CJRS around half of furloughed workers had earnings below this level.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
The CJRS closes today on Saturday 31 October ahead of the JSS launch tomorrow on Sunday 1 November.
As the scheme draws to a close new data published by HMRC shows that during the scheme’s eight month life it has protected 9.6 million jobs through some of the most challenging economic times the country has ever faced – with 90% of those coming off furlough by August returning to the same job.
The JSS and JRB are just one part of the UK Government’s package of measures that includes the extended business grants and Self-Employed Income Support Schemes announced last week, which will continue to support businesses and livelihoods across the country over the winter months.
Further information:
there is no gap in support between the CJRS and JSS
the deadline for submitting CJRS claims is 30 November
the JSS launches on 1 November, and employers can submit claims directly to HMRC from December 2020
HMRC stats show that 90% of those coming of furlough before August returned to the same job
Andrew normally works 5 days a week and earns £1400 a month, working in at a restaurant in the hospitality sector. His company is suffering reduced sales due to coronavirus. Rather than making Andrew redundant, the company puts Andrew on the Job Support Scheme, working 20% of his usual hours.
His employer pays Andrew £280 a month for these hours.
And for the time he is not working (80%), he will get 66.67% of his pay for that time. His total wage package is 73%, equal to £1,027. The government will give a grant worth £691 (61.67% of hours not worked) to Andrew’s employer to support them in keeping Andrew’s job, and his employer will pay a further £56 for hours not worked (5% of wages).
In addition, the employer will cover the Employer NICs and autoenrollment pension contribution on the payment (£56).
His employer may also be eligible for the Job Retention Bonus worth £1,000, this would cover 94.6% of employers total costs for retaining Andrew on the JSS between November and January.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
Example 2 – Job Support Scheme Open
Elena normally works part-time and earns £1,100 a month. Her company is suffering reduced sales due to coronavirus. Rather than making Elena redundant, the company puts Elena on the Job Support Scheme, working 20% of her usual hours.
Her employer pays Elena £220 a month for these hours.
And for the time she is not working (80%), she will get 66.67% of her pay for that time. Her total wage package is 73%, equal to £807.
The government will give a grant worth £543 (61.67% of hours not worked) to Elena’s employer to support them in keeping Elena’ job, and her employer will pay a further £44 for hours not worked (5% of wages).
In addition, the employer will cover the Employer NICs and autoenrollment pension contribution on the payment (£19).
Her employer may also be eligible for the Job Retention Bonus worth £1,000, this would cover over 100% of employers total costs for retaining Elena on the JSS between November and January.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
Example 3 – Job Support Scheme Closed
Charlie normally earns £1,400 a month and his company needs to close due to coronavirus. Rather than making Charlie redundant, the company puts Charlie on the Job Support Scheme Closed.
The government will give a grant worth 66.67% of Charlie’s pay to his employer to support them in keeping Charlie’ job.
That means for the time he is not working, he will get 66.67% of his pay. His total wage package is equal to £933.
The employer will cover the Employer NICs and autoenrollment pension contribution on the payment.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
Example 4 – Job Support Scheme Closed
Dalia normally earns £1,100 a month part-time and her company needs to close due to coronavirus. Rather than making Dalia redundant, the company puts Dalia on the Job Support Scheme Closed.
The government will give a grant worth 66.67% of Dalia’s pay to her employer to support them in keeping Dalia’s job.
That means for the time she is not working, she will get 66.67% of her pay. Her total wage package is equal to £733.
The employer will cover the Employer NICs and autoenrollment pension contribution on the payment.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
The Joseph Rowntree Foundation says there are still gaps in support that need to be filled, despite the Treasury’s support schemes.
The mortgage holiday scheme introduced at the start of the Covid-19 crisis ends on Saturday as does the job furlough scheme, which is being replaced by the Job Support Scheme.
It will leave a fifth of mortgage holders – around 1.6 million households – worried about paying their mortgage over the next three months, according to the poverty charity.
JRF said: “There is a real risk that mortgage-holders on low incomes will be pulled into poverty and hardship.
“890,000 working households with a mortgage expect to see a drop in earnings over the next month, but 85% of them – 750,000 households – aren’t eligible for any government support with their housing costs.
“It’s not right that during a time of huge uncertainty, many households are discovering that they are excluded from the only lifeline that could help meet their housing costs,” said Darren Baxter, policy and partnerships manager at the charity.”
The Joseph Rowntree Foundation wants the Support for Mortgage Interest payment to be reformed to help people who lose their jobs to keep their homes as they weather the coronavirus storm.
More than 200,000 jobs are already contributing to a cleaner, more sustainable Scotland, while thousands more roles could be created through the green recovery post-Covid19, experts have found.
A landmark report from Zero Waste Scotland and Circle Economy published today (Wednesday 28 October, 2020) shows the number of existing Scottish jobs operating within the circular economy, which keeps goods and materials in a ‘loop’ of use to maximise their value and minimise waste and the carbon emissions that causes.
It comes as Scotland’s decision-makers look to grow new ‘green’ jobs as they plan the country’s economic recovery from the coronavirus pandemic.
Scotland’s circular economy expert organisation, Zero Waste Scotland, helps businesses and consumers reduce waste and emissions to combat climate change. It produced the report – the first national assessment of ‘circular’ jobs and of future requirements for roles and skills in three priority areas in Scotland – working with fellow experts at Circle Economy in the Netherlands.
The circular economy is about making things last: through smarter design, and reusing, repairing and remanufacturing to create new items from old – all to keep products and materials within the economy for as long as possible.
It promises to maximise value from the goods we already have in circulation while relieving pressure on finite natural materials, like oil and precious metals. These resources are in high demand to create new products, yet those products are often thrown away by consumers after only a short amount of time.
Findings from the report, entitledThe Future of Work: Baseline Employment Analysis and Skills Pathways for the Circular Economy, show Scotland is in a strong position to benefit from the circular economy, with 8.1% of jobs already linked to the circular economy. That’s on a par with other countries where similar assessments have been conducted, like the Netherlands and Belgium.
The research also identifies a wide-ranging mix of new circular roles and skills needed to help Scotland Build Back Better by forging a truly national circular economy. It sets out a vision of the future of work in three priority areas – construction, the bioeconomy and capital projects, such as decommissioning energy infrastructure from oil rigs to wind turbines.
Iain Gulland, Chief Executive of Zero Waste Scotland, said:“Scotland has long been recognised as a leading nation on the circular economy so it’s heartening to see that so many jobs are already operating within circular business models, and we know there is scope for many more.
“As a nation we are preparing to Build Back Better following the coronavirus pandemic – while we’re just 12 months away from some of the most important climate negotiations of recent times in COP26, being held in Glasgow next year¹. What better time to make sure we stimulate growth while respecting the limits of our natural environment.
“The circular economy offers a way forward that can help Covid-hit businesses futureproof their operations, making them less vulnerable to future supply chain issues, while also generating opportunities for inward investment and new ‘green’ jobs.”
Scotland’s Environment Secretary, Roseanna Cunningham, said:“In these uncertain times, it’s more important than ever that we design a better future and see things put back together differently.
“It is vital that we draw on our experience of coronavirus – the things we’ve learned about how we work, travel and live – and apply this to our approach to Scotland’s green recovery, and to achieving net-zero.
“A thriving circular economy will play a critical role in ending Scotland’s contribution to climate change, and we must all – government, businesses, industry and individuals – be a part of driving this – and to ensuring our journey to net-zero is fair for everyone.
“I welcome the Future of Work report, which shows we are well on our way to evolving jobs that help drive our net-zero ambitions while ensuring we deliver a fairer economy in which everyone in Scotland can thrive.”
The study has been launched alongside a Circular Jobs Monitor tool from partner Circle Economy. This online tool enables users to see how many of a country’s existing jobs are associated with the circular economy, and how it compares to other nations.
Scotland’s figure includes directly circular jobs – such as those in the repair sector, design-related fields like architecture, or renting and leasing activities – as well as indirectly circular jobs, such as teachers, which provide services to primary circular activities.
The study shows that most circular jobs in Scotland are concentrated in southwestern and eastern regions, together accounting for more than 75% of all circular Scottish jobs – although in relative terms, all regions show a similar circular share of employment of between 7% and 9.8%.
Further information about regional circular jobs can be found on pages 18 to 23 of the report.
Mr Gulland continued: “For Scotland to maximise the benefits of a more sustainable economy we need to work towards all jobs being ‘circular’. It’s important to ensure we overcome Covid-19 and end our nation’s contribution to the climate crisis by 2045.
“Our landmark report identifies how we can do that, highlighting gaps which we need to fill and exciting new job opportunities in three key sectors. The circular economy is an opportunity for all parts of Scotland, urban and rural, to benefit from forward-looking jobs that are less susceptible to market pressures and help preserve our environment at the same time.”
The Future of Work: Baseline Employment Analysis and Skills Pathways for the Circular Economy is available on the Zero Waste Scotland website.
The Construction Leadership Forum (CLF) has published a plan for the sector’s recovery from the impact of coronavirus (COVID-19).
The plan, which has been created following extensive consultation, focuses on the joint action required between the industry and the public sector to respond to the pandemic.
The plan will work towards maximising support for employers and employees and establishing new ways of working to manage infection control, health and safety and shared learning opportunities.
A range of immediate actions in the plan are almost complete, with remaining ones now moving into implementation. Short and medium term initiatives include work to help apprentices into trades and preparing the industry to deliver a net-zero built environment.
The recovery plan will be flexible and able to respond to industry needs and economic conditions going forward.
Housing Minister Kevin Stewart said: “This recovery plan has been developed through unprecedented levels of collaboration across industry and with Government. We will now also work with the sector to help implement the plan’s actions.
“There is no doubt that the COVID-19 pandemic has had a significant impact on construction. It is absolutely vital for the economic recovery, and to protect jobs, that we get the sector back up to speed as quickly and as safely as possible.
“This plan sets out practical actions for how this can be achieved and we thank everyone who has taken part.”
Ken Gillespie, chair of Construction Scotland, said: “A huge amount of thought, energy and commitment from participants across Government and the Construction Industry has allowed us to prepare and publish this plan at pace and we are grateful to all those who have contributed.
“The hard work required to implement the plan and find the solutions to the challenges we face continues.
“We are indebted to the Minister for the leadership and support he has provided to the sector through this pandemic in his role as Chair of the CLF.”
Peter Reekie, chief executive of the Scottish Futures Trust, said: “Endorsement by Scottish Government shows testimony to the sector’s shared vision of an industry that promotes a safe, productive, profitable, innovative, sustainable and socially responsible construction industry, offering quality jobs and fair work to a highly skilled and diverse workforce and a quality and life-time value product to its customers.”
The Scottish Construction Leadership Forum is a collaborative initiative of Construction Scotland and the Scottish Government. It was established in March 2019 to develop and implement an action plan of improvements.
The TUC yesterday called on the UK government to implement the Equality Act in full on its tenth anniversary. The Equality Act became law on 1 October 2010.
The union organisation is also challenging ministers to show how they have delivered on the legal duties in the act in their response to the Covid-19 pandemic.
It protects working people from discrimination based on age, sex, disability, race, religion or belief, sexual orientation, marriage or civil partnership status, pregnancy or maternity, or gender reassignment. It was also designed to improve the lives of working class people through tackling inequality, but that part of the act, the socio-economic duty, was never brought into force.
The TUC is concerned that ten years since it was introduced, the full powers of the act have still not been implemented. And there is little evidence that the government is fulfilling its legal duty to consider the impact on inequalities in the decisions it makes.
The TUC says that Covid-19 has deepened inequality and discrimination at work, and is calling on the government to:
Bring the socio-economic duty into force: This was included in the original act but never implemented. It would require government and the public sector to deliver better outcomes for lower income people and make narrowing inequality a priority.
Reintroduce protections subsequently taken out: Previous governments have stripped away protections that were originally in the Equality Act – such Section 40, which would make employers liable for harassment of their employees by customers or clients. The union body says that in the current situation where hostility and assaults on retail and hospitality staff are increasing during the pandemic, this should be reinstated urgently.
Publish equality impact assessments for all government policies, as the law requires: in particular, the government should publish every equality impact assessment that they carried out to inform their response to Covid-19 – and should be held to account for those that are missing.
TUC General Secretary Frances O’Grady said: “Everyone has the right to respect and equal treatment at work – and in wider society.
“The Equality Act should have been a gamechanger. But ten years on, it still isn’t fully in force. Now is the time for the government to implement it in full.
“The pandemic has shown that the UK is still riven with discrimination.
“Black workers are more likely to be in frontline jobs with inadequate PPE – and more likely to die. Pregnant and disabled workers are too often first in line for redundancy. And the disappearance of much childcare provision has left women struggling to hold on to their jobs.
“Without the protection of Section 40 of the Equality Act, staff have less protection from abuse and harassment. Yet during the pandemic, we have seen a rise in hostility and assaults on shop workers and hospitality staff.
“Britain can be a more equal, more prosperous country. Equality must not be an afterthought for ministers.”
A “perfect storm” of mental health stresses is being created with lockdowns, economic anxiety, enforced social distancing, poor weather and isolation – meaning millions of home workers will suffer in silence this Winter.
The UK is possibly facing its biggest ever mental health crisis since the WWII this Winter as a combination of many factors will contribute to the low mood and poor mental health of millions of employees working from home.
According to the ONS (Office of National Statistics) 69% of adults in the UK are staying that Coronavirus is having a negative effect on their life and the drill down statistics are even worse:
63% are worrying about the future
56% are feeling stressed or anxious
49% are bored
“The worrying thing is everyone is in the same boat – we are so busy fighting our own fires – many of us don’t have the time or energy to help others”, says Jonathan Ratcliffe from office company Offices.co.uk.
“People are having a rotten time of it at the moment, and this Winter will be a real crunch point for many”.
Critical stress factors this Winter include:
Lockdowns – working from home and seeing less family/friends mean increasingly isolated lives
Uncertainty – Worries over employment and the economy creating a feeling of anxiousness
Poor Weather – Less daylight, poor weather means less opportunity to leave the house for fresh air and exercise
“The big worry for myself and my colleagues is either a new National lockdown, or the schools will close, because this will tip the balance for many people working from home and just managing to keep things on an even keel”, says Jonathan Ratcliffe
Offices.co.uk offers these general pointers to those working from home and feeling the pressure:
Routine – it’s vital if you want to be motivated that you set a routine. Make sure you get up at a decent time and start work at 9am.
To do list – Start by writing a small list of work to achieve, lower your expectations and work towards ticking all those goals even if they are small.
Talk to someone – If you have a work buddy, you’d usually chew the fat with, why change? Give them a call, maybe first thing – helps you both realise you are not alone.
Food and drink – Make sure you eat properly and stay hydrated throughout the day.
Fresh air – At lunch time take a walk or sit outside, put your phone down, look around and enjoy the peace and quiet.
Finish at 5 – Don’t be tempted to work into the evening, try and finish up around the same time as you would normally.
Put the phone down – After “work” is over, try to forget about it. Enjoy time with a partner or family.
Wine O’clock – It’s tempting to hit the wine each night, we’re under stress. But you didn’t booze like this before, time to reduce intake and get a good sleep.
Sleep – Decent bedtime and try and get 8 hours solid sleep if possible.
Plan for the other side – This will end, we simply don’t know when yet, and when it does you need to be in the best shape possible to seize any opportunities. Get planning!
“Bosses need to be very aware that their remote staff might be struggling, and while they have their own pressures, they need to reach out and monitor staff daily to make sure any issues can be addressed – being sensitive and caring is upmost for employers this Winter period”, concludes Jonathan Ratcliffe from Offices.co.uk
Extension of scheme could save thousands of jobs – but UK Governmentsays no
Extending the furlough scheme by eight months could save 61,000 jobs in Scotland, according to new research.
A Scottish Government report estimates that the direct cost of extending the furlough scheme in Scotland to June is around £850 million – and wider economic benefits, such as increasing GDP, mean that it could pay for itself.
It comes as the Business Impact of COVID-19 Statistics, also published today, found that of all Scottish firms surveyed, over two thirds were still furloughing their workforce to some extent. The new data also estimated 15% of the workforce were still on furlough.
Economy Secretary Fiona Hyslop said: “The UK Government must think again about withdrawing blanket support and they must urgently implement some form of extension which would continue to provide help for the sectors that have been most heavily affected.
“Extending the Job Retention Scheme for eight months would save 61,000 jobs in Scotland and help secure a stronger economic recovery from coronavirus (COVID-19). Unlike the Scottish Government, the UK Government has the borrowing powers necessary to fund the extension of the Job Retention Scheme and they must act now to protect jobs and livelihoods.
“New furlough statistics for Scotland published today show wide variation between different sectors of the economy. Even though in some sectors a significant number of people have gone back to work, the outlook is much bleaker in other sectors. In accommodation and food services an estimated 34.4% of staff were still on furlough, and this rises to 57.5% of staff in the arts, entertainment and recreation sector.
“Of course, the furlough scheme cannot continue indefinitely, but an extension would help keep people in jobs while sectors of the economy currently unable to fully open recover and will lead to sustained economic benefits at a relatively small cost.”
Research highlights England’s local councils with the lowest social mobility opportunities
The effect of deprivation in dozens of English local authorities is now so persistent that some families face being locked into disadvantage for generations unless the right action is taken, a new report shows today.
In the most detailed study of regional social mobility ever conducted in the UK, the report from the Social Mobility Commission identifies local councils with the worst and the best social mobility in England.
In the “coldest spots” those from disadvantaged backgrounds, entitled to free school meals, have little chance of making a better life for themselves or their children. They also earn much less than their more affluent peers.
These areas, which range across England, include:
Chiltern
Bradford
Thanet
Bolton
Wolverhampton
Kingston-upon-Hull
Fenland
Mansfield
Walsall
Gateshead
Kirklees
St Helens
Dudley
Bolton
Wigan
Individuals aged 28 from disadvantaged families in these councils earn on average just over half the amount of those from similar backgrounds in the most mobile areas. They also earn much less than those of the same age from more affluent families living nearby.
Steven Cooper, interim co-chair of the commission said: “These findings are very challenging. They tell a story of deep unfairness, determined by where you grow up. It is not a story of north versus south or urban versus rural; this is a story of local areas side by side with vastly different outcomes for the disadvantaged sons growing up there.“
Areas with high social mobility, where those from poorer backgrounds earn more and the pay gap with those from affluent families is smaller include:
The results, covering around 320 local councils in England and 800,000 young adults, show a postcode lottery for disadvantaged people. In areas with high social mobility, disadvantaged young adults earn twice as much as those with similar backgrounds in areas with low social mobility – on average, over £20,000 compared with under £10,000. Annual earnings from this group range from £6,900 (Chiltern) to £24,600 (Uttlesford).
Councils with the lowest earnings for disadvantaged individuals include:
Bradford
Hyndburn
Gateshead
Thanet
But they also include:
West Devon
Sheffield
Malvern Hills
Kensington and Chelsea.
Those with the highest earnings include:
Broxbourne
East Hertfordshire
Forest Heath
Havering
Uttlesford
Wokingham
But those from poor backgrounds also face unfairness on their doorstep. Pay gaps between the most and least deprived individuals in local authorities with the poorest social mobility are 2.5 times higher than in areas of high social mobility.
Education, often blamed for social mobility differences, is only part of the answer. In areas with high social mobility, gaps in educational achievement account for almost the entire pay difference between the most and least advantaged sons. On average it accounts for 80% of the difference.
However, in local authorities where social mobility is low it is much harder to escape deprivation. In such areas, up to 33% of the pay gap between the highest and lowest earners is down to non-education factors, like local labour markets and family background.
Disadvantaged workers are restricted by factors including limited social networks (fewer internships); inability to move to more prosperous areas; limited or no financial support from family; less resilience to economic turbulence due to previous crisis such as 2008 financial crash and less developed soft skills.
The commission is now urging regional and community leaders to use the findings to help draw up tailored, sustained, local programmes to boost social mobility, building on the approach in some Opportunity Areas.
The commission will also ask the government to extend its current Opportunity Areas programme – which gives support to 12 councils – to include several more authorities identified as the areas with the most entrenched disadvantage.
Professor Lindsey Macmillan, Director of CEPEO at UCL and Research Fellow at IFS said: “This new evidence highlights the need for a joined up-approach across government, third sector organisations, and employers.
“The education system alone cannot tackle this postcode lottery – a strategy that considers the entire life experience, from birth through to adulthood, is crucial to ensuring fairer life chances for all.”
Laura van der Erve, Research Economist at IFS and co-author of the report, said: “Not only do children from disadvantaged backgrounds have considerably lower school attainment and lower adult earnings than their peers from more affluent backgrounds, we also find large differences in the outcomes of children from disadvantaged backgrounds across the country.
“This highlights that children’s opportunities in England are still defined by both the family they were born into and the area they grew up in.”
Key findings
Social mobility in England is a postcode lottery, with large differences across areas in both the adult pay of disadvantaged adults, and the size of the pay gap for those from deprived families, relative to those from affluent families.
Disadvantaged young adults in areas with high social mobility can earn twice as much as their counterparts in areas where it is low – over £20,000 compared with under £10,000
Pay gaps between deprived and affluent young adults in areas with low social mobility are 2.5 times larger than those in areas with high social mobility.
In areas of low social mobility, up to 33% of the pay gap is driven by family background and local market factors, over and beyond educational achievement.
Characteristics of the coldest spots: fewer professional and managerial occupations; fewer outstanding schools; higher levels of deprivation and moderate population density.
The Social Mobility Commission is an independent advisory non-departmental public body established under the Life Chances Act 2010 as modified by the Welfare Reform and Work Act 2016. It has a duty to assess progress in improving social mobility in the UK and to promote social mobility in England.
NEW TUC REPORT identifies 600,000 existing public service vacancies and staff gaps that government could unlock quickly to cut jobless rate
The more people in work, the faster we will work our way out of recession, says TUC
A new TUC report has set out proposals for a public sector jobs drive to stave off mass unemployment and help the UK quickly recover from the Covid-19 recession.
The UK entered the Covid-19 crisis with our public services weakened by a decade of cuts. But public service workers gave their all to keep essential services going.
As we move out of the public health crisis, we are moving towards an economic crisis, with the Bank of England warning of mass unemployment with 2.5 million people out of work by the end of the year.
Creating decent jobs
The TUC’s report sets out a plan for public sector jobs to contribute to the fast employment growth the UK now needs.
It identifies the additional staff required across the public sector to fill vacancies, address shortfalls in provision and meet future need.
The union body is calling for government to urgently unlock the 600,000 jobs identified, including:
135,000 in health
220,000 in adult social care
110,000 in local government
80,000 in education
50,000 in civil service / public administration
Taken together with proposals published by the TUC in June to create 1.25 million jobs by fast-tracking green infrastructure investment, this plan could deliver a total of 1.85 million new jobs in the next two years.
Powering recovery
The TUC says that the government-led jobs drive would help support a stronger and faster private sector recovery too, with opportunities in supply chains and from the boost to spending power across the economy.
And it would help protect the Treasury from the revenue shortfall arising from the downside recovery scenario set out by the Office for Budget Responsibility (OBR).
Under the OBR’s downside scenario, peak unemployment would be two million higher than for the upside scenario. TUC analysis of OBR data finds that the Treasury would lose out on £520bn in revenue over the next five years on the downside scenario relative to the upside.
The TUC says that the government must invest now to put the UK on the upside path – by preventing mass unemployment.
Otherwise the nation will suffer the high costs of mass unemployment, weak revenue and slow growth for many years ahead.
TUC General Secretary Frances O’Grady said: “Working people carried the burden of the pandemic. They must not bear the brunt of the recession. The government must go all out to protect and create jobs and prevent the misery of mass unemployment.
“The more people we have in work, the faster the recovery will be. But ministers are sitting on their hands. It’s absurd to leave unfilled vacancies and unmet need in public services when unemployment is rising. Ministers should urgently provide the funding that will unlock existing public services vacancies and create good new jobs.
“Our plan to invest in good public services jobs will help workers avoid unemployment. It will strengthen the vital services that we all rely on. And it will get people out spending in local business and services. That’s how to drive the recovery forward.”
Scotland’s pubs and bars face unprecedented challenges with fears up to 12.5k jobs could be lost
The Scottish Licensed Trade Association has released a snapshot survey of the challenges facing Scotland’s pubs and bars, sponsored by KPMG UK. The survey contains key insights into the significant impacts of the COVID crisis on Scotland’s pubs and bars.
The survey which represents over 10% of Scotland’s On-trade premises, highlights that 45% of business owners do not expect a return to any sort of normal trading until a vaccine is found.
The survey also revealed that up to 25% of the 50,000 jobs in the sector could be lost and coupled with the introduction of reduced opening hours for many businesses and a subsequent reduction in working hours for staff, all jobs in the sector are effectively under threat.
Colin Wilkinson, Managing Director of the SLTA, said: “Our snapshot survey covers all types of licensed premises and is an indicator of the key issues facing the wide range of small to large businesses which trade within the wider hospitality sector.
“Our survey is based upon quantitative research from over 600 outlets covering the length and breadth of the country and is supported by major food and drink chains, independent pubs, bars and hotels in Scotland’s hospitality sector.
“The impact of COVID has been more severe for Scotland’s pubs and bars than virtually any other sector, and we now face the stark reality that up to 12,500 jobs could be lost as nearly 90% of premises report that their revenue is down versus last year, with 38% reporting revenue decreases of over 50%.
“Our own survey reinforces a recent survey by the University of Edinburgh on behalf of the tourism industry, which shows the devastating impact on employment in pubs, bars and the wider hospitality sector.
He went on: “Our sector has worked very hard to prepare for reopening and to ensure customers enjoy a safe environment. The average pub or bar spent £2,500 on training and social distancing measures, and this equates to a £15m investment across the entire sector.
“Also, many pubs and bars have adapted by making increased use of digital technology and offering restaurant quality food and cocktails for home delivery. However, with many people working from home, and local restrictions, one of Scotland’s major employment sectors faces unparalleled difficulties and the current business climate is leading to a real threat of permanent business closures and job losses.’’
The sector welcomed the support from both the UK and Scottish Governments, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
Alistair McAlinden, head of hospitality and leisure for KPMG in Scotland, said: “It’s incredibly concerning, but not entirely surprising, to hear that so many licensed trade operators across Scotland are worried about largescale job losses and possible business failures over the next twelve months. The industry is facing a battle for survival and there will inevitably be some casualties.
“KPMG’s Economic Outlook research gives some cause for cautious optimism, forecasting that Scotland’s economy should regain lost ground in 2021, provided a vaccine programme is successful and rolled out quickly. But, for many pubs and bars, the crisis is happening right now and time is running out.
“The sector has worked tirelessly to reopen and rebuild consumer confidence. A collaborative effort and increased support from political leaders will be essential to ensure the industry survives an incredibly challenging few months ahead.
“As part of this, KPMG’s multidisciplinary team are already supporting a number of licensed trade operators as they seek to navigate their way through these financial headwinds.”
Colin Wilkinson concluded: “The SLTA, is currently celebrating our 140thanniversary, and has been the voice of the independent licensed On-trade in Scotland since 1880. Right now, our industry is fighting for its survival with many businesses on the precipice of business failure.
“The sector is a critical part of Scotland’s tourism and food and drink economies and we urge UK, Scottish and Local Governments to provide continuing support for our pubs and bars and protect the jobs that they provide directly, and the associated jobs in the wholesaling, brewing/distilling and food producing sectors.”
Key Findings
63% of businesses are employing less people now than in January (a traditional quiet month), and it is forecast this will increase to 70% less employees by Christmas.
45% of businesses do not expect a return to normal trading until a COVID vaccine is found.
85% of outlets are seeing a downturn in footfall and 89% in revenue.
38% have seen revenue drop by over 50% versus same period last year.
There is evidence that venues in rural and tourist locations are faring slightly better than in urban areas with 77% showing a revenue decline versus 89% nationally.
Retailers have spent significant sums on preparing to meet social distancing standards, with an average investment of £2,500 per outlet, which equates to £15m across Scotland’s pubs and bars.
There are major implications for employment.
Most respondents felt positive about government support provided, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
The Eat Out to Help Out scheme was well received amongst those serving food with an enthusiasm to extend.
Retailers have adapted to new ways of working and serving their customers with 43% increasing their use of digital technology and 35% offering food for takeaway.
