Tag: insecure work

TUC – number of people in insecure work reaches record 4.1 million

1 in 8 workers now in employment that offers little or no security, says union body

  • Insecure work has risen nearly three times faster than secure forms of employment since 2011, analysis shows 
  • TUC accuses Conservatives of presiding over a “race to the bottom” on employment standards 
  • Union body says New Deal for Working People urgently needed 

The number of people in insecure work has reached a record high of 4.1 million, according to new TUC analysis. 

The analysis of official statistics shows the number of people in precarious employment – such as zero-hours-contracts, low-paid self-employment and casual/seasonal work – increased by nearly one million between 2011 and 2023. 

Over that period insecure work rose nearly three times faster than secure forms of employment. While the numbers in insecure work increased by 31%, those in secure employment increased by just 11%. 

The TUC estimates that 1 in 8 workers in the UK are now employed in precarious employment. However, in some parts of the country, such as the West Midlands and the South West, this number has risen to 1 in 7. 

Low-paid industries have fuelled most of the growth 

The growth in insecure work since 2011 has been fuelled mainly by lower-paid sectors of the economy. 

In care, leisure, service occupations and elementary occupations the number of people in precarious employment has rocketed by over 600,000 (+70%) since 2011. 

Insecure work pay penalty 

Today’s analysis also shows that people in insecure work face a severe pay penalty compared to other workers. 

People on zero-hours contracts earn over a third (35%) less an hour, on average, than workers on median pay. 

And the pay gap between workers in seasonal (-33%) and casual (-37%) work and median earners is also stark. 

New Deal “urgently needed” 

The TUC says the huge rise in insecure and low-paid work highlights the need for boosting workers’ rights and making work pay. 

The union body says Labour’s New Deal for Working People would be a “game changer” if delivered in full – with the biggest upgrade in workers’ rights in a generation. 

In April the Chartered Management Institute polling of managers revealed strong support for key New Deal policies:   

  • More than 4 in 5 (82%) managers said granting workers fundamental day one rights was important.   
  • 3 in 4 (74%) managers said a ban on zero-hours contracts was important, and 
  • 3 in 4 (74%) managers said the publication of ethnicity and disability pay gaps was important. 

The polling also revealed that 80% managers believe workers’ rights should be a top priority in national policies, while 83% said such changes can positively impact workplace productivity. 

TUC General Secretary Paul Nowak said: “We need a government that will make work pay. But over the last 14 years we have seen an explosion in insecure, low-paid work. 

“The UK’s long experiment with a low-rights, low-wage economy has been terrible for growth, productivity and living standards. 

“Real wages are still worth less than in 2008, and across the country people are trapped in jobs that offer little or no security.” 

On the need for change, Paul added: “We must end the Conservatives’ race to the bottom on employment standards.  

“The New Deal is an opportunity for a reset. Delivered in full – it would be a game changer for millions of working people. 

“As well as preventing workers from being treated like throw-away labour it would stop good employers from being undercut by the bad.” 

If delivered in full Labour’s New Deal will:  

  • Strengthen collective bargaining by introducing fair pay agreements to boost pay and conditions – starting in social care.   
  • Introduce ethnicity pay gap reporting and disability pay gap reporting.   
  • Ban zero-hours contracts to help end the scourge of insecure work.  
  • Give all workers day one rights on the job. Labour will scrap qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave.   
  • Ensure all workers get reasonable notice of any change in shifts or working time, with compensation that is proportionate to the notice given for any shifts cancelled or curtailed.  
  • Beef up enforcement by making sure the labour market enforcement bodies have the powers they need to undertake targeted and proactive enforcement work and bring civil proceedings upholding employment rights. 

A New Deal for young workers?

New TUC analysis for our 2024 Young Workers Conference shows that more than 700,000 workers aged 18-20 across the UK are set to be left out of pocket as they are paid a lower rate of the minimum wage (writes TUC’s ALICE ARKWRIGHT).

On 1 April, the National Living Wage will go up to £11.44 per hour and be extended to workers aged 21 and over. But workers under 21 will still be paid less for the same work, simply because of their age and as many as seven in ten workers aged 18-20 could lose out. 

Over 700,000 18-20 year olds are paid less than this rate and they miss out on a huge £2,438 per year, or £47 per week, at a time when the cost of living is still sky high. This is completely unfair.  

Young workers have been let down time and time again by this Tory government.  

They have entered the labour market at a time when insecure work has exploded. Insecure work is characterised by low pay, less training and development, uncertainty in hours and fewer employment rights.    

16-24 year olds are over five times more likely to be on a zero hours contract than workers aged 25 and over.  

Despite only making up 11 per cent of the total workforce, young workers make up 40 per cent of the 1.18 million workers employed on a zero hours contract. 

And young women and young BME workers are more likely to be on them. 

Some young workers are not even being paid – a quick search of recruitment sites finds multiple internship adverts with no mention of pay, including one asking for 3 years’ experience.  

And three quarters of employees aged 16-24 miss out on key employment rights that most of us take for granted, such as protection from unfair dismissal and the right to statutory redundancy pay.   

Imagine working hard in a job for nearly two years – only to be let go with no recourse.   

Young people are always hit hardest during times of uncertainty, which they’ve faced time and time again in the last 14 years. Youth unemployment rose dramatically after the financial crisis and more recently during the pandemic. And we are seeing it rise again. The unemployment rate is highest for young BME and young disabled workers. 

A lack of decent work, training opportunities including good quality apprenticeships and careers services are keeping unemployment rates higher than they need to be and increases the risk of longer-term unemployment, which has significant scarring effects on young people’s future living standards and wellbeing. 

Since 2016/17 there has been a 37 per cent fall in the number of under 19s starting an apprenticeship. Many young people are put off them by the high incidence of low pay, low quality training and poor employment conditions. 

Every day we hear stories about sexual harassment in our workplaces. 2 in 3 young women have experienced harassment at work and they are particularly at risk of harassment from third parties such as clients, customers and patients.  

Last year, ministers promised to bring in a new law to put the onus on employers to keep their staff safe from this type of abuse. 

But instead, they buckled to Tory backbenchers, massively watered down the legislation and let down young women across the country. 

Alongside this failure to protect workers, this government have also introduced new anti-strike laws which mean a generation of young people could lose their right to strike.  

We must give young people a good start at working life. 

Labour’s New Deal for Working People stands in stark contrast to the Conservatives’ dire record on workers’ rights. It would: 

  • Ban zero-hours contracts to help end the scourge of insecure work.  
  • Ensure all workers get reasonable notice of any change in shifts or working time  
  • Give all workers day one rights on the job, scrapping qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave for all workers.  
  • Remove the discriminatory age bands from the minimum wage to ensure every adult worker benefits from fair pay.  
  • Ban unpaid internships; and  
  • Require employers to ensure workplaces are free from harassment, including by third parties. 

And Labour have committed to reform the National Careers Service and the failed Apprenticeships Levy into a ‘Growth and Skills Levy’ that works across all nations and regions. 

At Young Workers Conference, members from across our movement will debate what a better future for young people looks like and the need for this transformative New Deal. 

Number of BME workers in insecure work has “boomed” over past decade, TUC warns

  • BME men almost twice as likely to be in insecure work as white men – and BME women are more likely to be insecure work compared to white women 
  • Insecure work is characterised by low pay, variable hours and fewer rights and protections for workers  
  • The disproportionate concentration of BME workers in insecure work shows “structural racism in action”, the TUC says 

New analysis published by the TUC has revealed the number of Black and ethnic minority (BME) workers in insecure work more than doubled from 2011 to 2022 (from 360,200 to 836,300). 

The chance of a BME worker being in an insecure job has also increased, with 1 in 6 in this position now compared to 1 in 8 in 2011.   

The TUC says the “boom” in BME workers in insecure work accounts for the vast majority of the overall increase in insecure workers over the last decade.  

BME workers account for two thirds of the growth of insecure workers in this period – despite BME workers making up just 14% of the overall workforce.    

Insecure work is typically low-paid, and those in insecure jobs have fewer rights and protections. This means their hours can be subject to the whims of managers and they can lose work without notice. 

Nation of insecure work 

The TUC says the UK is becoming a “nation of insecure jobs”, with precarious and low-paid work widespread in all regions and nations of the UK.   

There are 3.9 million people in insecure employment – that’s 1 in 9 across the workforce.    

London (13.3%) and the South West (12.7%) have the highest proportion of people working in insecure jobs.    

The industries with the highest proportion of insecure work are the elementary occupations, caring, and leisure services, and process, plant and machine operatives.  

Low-paid work is increasingly insecure work – in 2011, 1 in 8 low paid jobs were insecure, but by the end of 2022, 1 in 5 low paid jobs were insecure. 

“Stark inequalities” 

The TUC says the disproportionate number of BME workers in insecure work shines a light on “stark inequalities” in the labour market. 

The proportion of BME workers in insecure work significantly increased between 2011 and 2022, while the proportion of white workers in insecure work remained relatively stable: 

  • The proportion of BME workers in insecure work increased from 12.2% to 17.8%. 
  • The proportion of white workers in insecure work remained at around the same level – going from 10.5% to 10.8%. 

BME workers are significantly more likely to be in insecure work compared to white workers: 

  • BME men are almost twice as likely as white men to be in insecure work (19.6% of BME men in work compared to 11.7% white men). 
  • BME women are much more likely than white women to be in insecure work (15.7% of BME women in work compared to 9.9% white women). 

While BME employment grew between 2011 and 2022 by 1.7 million, much of the increase in employment was in low-paid and precarious insecure work. 

Between 2011 and 2022, almost a third (27%) of the increase in BME employment was in insecure work, compared to just 16% for the increase in white employment. 

The TUC says the explosion in the gig economy partly explains the significant rise in BME insecure employment – with the number of BME workers in low-paid self-employment surging over the past decade. TUC analysis has shown a particular rise in low paid self-employment in delivery and driving among BME men. 

Structural racism in action 

The TUC says the overrepresentation of BME workers in insecure work shows “structural racism in action”. 

The union body says BME workers experience racism at every stage of the labour market. 

This includes discrimination in recruitment processes, lower opportunities for training and development compared to white workers, being unfairly disciplined, and being typecast into specific roles often with less favourable terms and pay.  

The TUC says these are “persistent barriers at work” which “hold back” BME workers across different roles and occupations, leaving disproportionate numbers of BME workers stuck in low-paid jobs, with limited rights and on precarious contracts which mean they can find themselves out of work without notice. 

Recent TUC polling revealed around half (49%) of BME workers said they had experienced at least one of the following forms of discrimination at work: 

  • 1 in 7 (14%) BME workers reported facing unfair criticism in the last five years.   
  • 1 in 9 (11%) said they were given an unfair performance assessment.    
  • 1 in 13 (8%) told the TUC they were unfairly disciplined at work.   
  • 1 in 14 (7%) said they have been subjected to excessive surveillance or scrutiny.     
  • 1 in 8 (12%) BME workers said they were denied promotions.   
  • 1 in 8 (12%) BME workers reported being given harder or less popular work tasks than white colleagues.  
  • 1 in 11 (9%) told the TUC they had their requests for training and development opportunities turned down. 

Government action needed 

To help tackle structural racism in the labour market and end the scourge of insecure work, the TUC is calling for the government to:  

  • Ban the abusive use of zero-hours contracts by giving workers the right to a contract reflecting their normal hours of work and ensure all workers receive adequate notice of shifts, and compensation when shifts are cancelled at short notice. 
  • Introduce fair pay agreements to raise the floor of pay and conditions in sectors blighted by insecure work. 
  • Crack down on bogus self-employment by introducing a statutory presumption that all individuals will qualify for employment rights unless the employer can demonstrate that they are genuinely self-employed.   
  • End the two-tier workforce and reform the rules on employment status to ensure that all workers benefit from the same employment rights, including statutory redundancy pay, protection from unfair dismissal, family-friendly rights, sick pay and rights to flexible working. 
  • Give workers a day one right to flexible working – not just a right to request. 
  • Establish a comprehensive ethnicity monitoring system covering mandatory ethnicity pay gap reporting, recruitment, retention, promotion, pay and grading, access to training, performance management and discipline and grievance procedures. 

TUC General Secretary Paul Nowak said: “No matter your background, everyone deserves to be treated with dignity and respect at work.  

“But too many Black and ethnic minority workers are trapped in low-paid, insecure jobs with limited rights and protections, and treated like disposable labour. 

“The massive and disproportionate concentration of BME workers in insecure work – like in the gig economy – is structural racism in action.  

“Across the labour market, and at every stage, BME workers face discrimination and persistent barriers at work.  

“From not getting the job despite being qualified for the role, to being passed over for promotion, to being unfairly disciplined at work.  

“These barriers lead to stark inequalities – and it’s why we’re seeing BME workers disproportionately in the worst jobs with the worst pay and conditions. 

“It’s time to end the scourge of insecure work once and for all – that’s how we start to tackle the discrimination that holds BME workers back. 

“That means banning exploitative zero hours contracts. It means delivering fair pay agreements to lift pay and standards across whole industries. And it means placing a duty on employers to report their ethnicity pay gap and take action to close it.”

– METHODOLOGY 

The total number in ‘insecure work’ includes: 

(1) agency, casual, seasonal and other workers, but not those on fixed – term contracts  

(2) workers whose primary job is a zero-hours contract 
NOTE – data on temporary workers and zero-hour workers is taken from the Labour Force Survey. Double counting has been excluded.  

(3) self-employed workers who are paid below 66% of median earnings – defined as low pay.