Men ‘still earning more than women’, research suggests

Research carried out by the BBC has suggested that men are still earning more than women in most UK companies.

The BBC found that the gender pay gap currently sits at 9.4%, which is the same level as recorded in 2017/18.

By law, any employer with 250 or more employees must report their gender pay gap data on a specific date each year. Companies, charities and public sector departments must report their data to the gender pay gap service and publish the information on their website.

Employers who fail to report on time or report inaccurate data are subject to enforcement action by the Equality and Human Rights Commission (EHRC). The gender pay gap is different from equal pay: equal pay means that men and women performing equal work, or work of equal value, must receive equal pay.

The BBC’s research suggested that the banking sector was among the worst offenders. Women working in this sector earn, on average, 22% less than men.

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Report suggests pay for under-40s is ‘11% lower than before financial crisis’

Typical hourly pay for UK workers aged under 40 is at least 11% lower than before the 2008 financial crisis, a report published by the Resolution Foundation has suggested.

Hourly pay for employees aged between 22 and 39 was down by 11% during its peak, compared to -5% for workers in their 50s and -2% for workers in their 60s.

Average weekly earnings fell by 0.4% during the first three months of this year, the report also revealed.

However, the Foundation predicts that the current pay squeeze will be ‘shallower and shorter’ than the significant fall that followed the financial crisis.

Stephen Clarke, Economic Analyst at the Resolution Foundation, commented: ‘The pay squeeze made an unwelcome return at the start of 2017 and looks set to stay with us for the rest of the year at least.

‘The wages of younger workers and those living in London are still more than 10% lower than they were back in 2008, and this latest squeeze means it will take many more years for their earnings to fully recover.’

UK workers receiving ‘lower pay’ as a result of higher pension deficit payments

A new report published by the Resolution Foundation has suggested that workers in the UK are receiving ‘lower rates of pay’ as a result of higher pension deficit payments.

The report revealed that workers are unfairly losing an average of £200 a year, and that low paid and younger employees are the most affected by the loss – many of whom are not entitled to the pension pots they are plugging.

Older workers and those already in retirement ‘stand to gain the most from the plugging of gaps’, the Foundation stated in its report.

The think tank revealed that UK businesses spent around £24 billion trying to reduce their pension deficits in 2016.

Matt Whittaker, Chief Economist at the Resolution Foundation, said: ‘Our research shows for the first time that there is indeed a link between rising pension deficit payments since the turn of the century and reduced pay.

‘With average earnings still £16 a week below their pre-crisis peak and prospects for a return to strong pay growth looking shaky, it’s important that younger and low paid workers don’t take a hit to their pay because of deficit payments to pension schemes that they’re not even entitled to.’

Self-employed ‘earning less than they did 20 years ago’, report suggests

Average wages for self-employed individuals are lower than they were in 1994/95, a report by the Resolution Foundation has revealed.

Data published by the think tank showed that, whilst the number of self-employed workers has grown by 45% since 2001/02, their weekly earnings have fallen by £60.

The report revealed that self-employed individuals’ typical weekly earnings grew during the late 1990s and early 2000s, but fell in the wake of the financial crisis.

Earnings have recovered over the last year, and, according to the Resolution Foundation, are ‘almost back to levels last seen in the late 1990s at around £240 a week’.

However, this is 15% down when compared to typical weekly earnings in 1994/95.

Adam Corlett, Economic Analyst at the Resolution Foundation, commented: ‘Almost five million workers across Britain are now self-employed. But while the self-employed workforce is getting bigger, typical earnings are actually lower than they were 20 years ago.

‘With so many self-employed workers earning so little, it is right that the Government investigate how public policy should catch up to meet the needs of these workers.’

A Government spokesperson stated: ‘The Government is committed to building an economy that works for everyone and while the National Living Wage has given one million workers a pay rise, the Prime Minister has made clear the labour market must support and protect all workers.’

Significant rise in self employment, ONS figures reveal

Self employment levels have risen considerably, according to new data from the Office for National Statistics (ONS).

Labour market figures show that, between March and May 2016, the number of self employed individuals increased by 300,000 to 4.79 million. The self employed now account for 15.1% of all people in work.

Commenting on the data, Frances O’Grady, General Secretary of the Trades Union Congress (TUC), stated: ‘While it’s good to see more people in work, the huge increase in self employment raises questions about the nature of these jobs.

‘These newly self-employed workers are not all budding entrepreneurs.’

The data also revealed that unemployment reached its lowest level in more than a decade.

Between the months of March and May of this year, a total of 31.7 million people were in work – 176,000 more than for the three months to February 2016, and 624,000 more compared to a year earlier.

Furthermore, average weekly earnings, excluding bonuses, rose by 2.2%, in comparison to the previous year.

Study suggests that gender pay gap ‘doubles’ for female managers over 40

The Chartered Management Institute (CMI) has released a study suggesting that female managers aged 40 and over are paid a total of 35% less than their male counterparts.

According to the report, the gender pay gap almost doubles for women aged over 40 when they enter management roles. The study has also revealed that this figure is only set to worsen with age.

Currently, men and women in their 20s and 30s receive broadly similar levels of pay. However, once women reach their 40s, a sizeable pay gap develops.

The average pay gap in the UK currently stands at 19%. When women who hold senior positions enter their sixties, the pay gap stretches to 38%.

Data from the CMI’s latest National Management Salary Survey suggests that female employees working in professional and full-time management positions earn, on average, 22% less than male employees.

The survey polled 72,000 managers in the UK, and revealed that, in monetary terms, the gender pay divide stands at £8,524.

Women typically earn £30,612, compared to a figure of £39,136 for men.

Those women who hold director roles earn an average of £123,756, whereas men in the same positions earn £138,699.

Investigations are being undertaken by MPs into levels of pay discrimination between male and female employees.

Unemployment rate drops to lowest figure since 2008

New figures from the Office for National Statistics (ONS) show that the UK unemployment rate has fallen to its lowest level in over seven years, while the percentage of people in work is the highest since records began.

In the three months to August unemployment fell to 5.4%, which is the lowest rate since the second quarter of 2008.  The ONS statistics show that there were 1.77 million people out of work between June and August, a drop of 79,000 on the previous quarter.

Meanwhile, the number of people in work rose by 140,000 to 31.1 million – giving an employment rate of 73.6%, the highest figure since records began in 1971.

Although the number of part-time workers rose by 68,000 to 8.35 million, the amount of people in full-time employment also rose significantly: up by 291,000 to 22.77 million.

Earnings also rose in the period, but by less than expected. Workers’ total earnings – including bonuses – were up 3% on the previous year, while growth in average weekly earnings, excluding bonuses, compared to the same period in 2014 was 2.8%.

Matthew Fell of the Confederation of British Industry said: ‘We’re encouraged by businesses creating more jobs, leading to rising employment. It’s also good to see falling unemployment, particularly among those out of work for more than one year dropping by 44,000.

‘While we want to see higher pay growth, this must go hand in hand with increases in productivity. It’s crucial that the Low Pay Commission retains autonomy over future National Living Wage rises to avoid unnecessary political interference and help boost jobs’.

Employment at highest rate on record

19 Feb 2015

Recent figures released by the Office for National Statistics (ONS) show that unemployment in the UK has fallen to 5.7% of the working population.

The figures show that 103,000 more people found work in the three months to December 2014. The employment rate now stands at 73.2%, marginally higher than the pre-crisis levels recorded in 2008.

Prime Minister David Cameron welcomed the information as proof that the Government’s economic plan is working. He said: ‘I’m not saying we have solved all our problems in the British economy in the last four and a half years, but we are on our way’.

Average earnings rose to 2.1%, the ONS said, although excluding bonuses that figure drops to 1.7%.

With the economy showing signs of steady improvement and more competition in the jobs market, Chief Economist at the Institute of Directors (IoD), James Sproule, said: ‘Two-thirds of IoD members are planning pay rises at least in line with inflation over the coming months’.

Younger workers hardest hit by financial crisis, study shows

Research by the Institute for Fiscal Studies (IFS) has been released, showing the impact of the financial crisis and economic recovery on UK employees.

For workers aged 60 and older, average hourly pay in 2014 had returned to its 2008 levels, while workers in their 20s were an average of 9% worse off. Average weekly wages were also shown to have dropped by 5.9%, due mainly to a rise in part-time work.

One author of the report, Jonathan Cribb, said: ‘Almost all groups have seen real wages fall since the recession. Women have seen much smaller falls than men. Falls for the low-paid have been somewhat smaller than for those on higher pay, driven by trends since 2011’.

Other key findings show real earnings growth returning to normal, while individuals who have remained full-time in the same job since 2011 have seen their pay rise year on year. However, part-time workers have increasingly reported that full-time hours are not available.

The full report is available here from 4 February 2015.

Wages fall as earnings peak delayed

15 Jul 2014

The Institute for Fiscal Studies (IFS) has released figures showing that average incomes fell by 10% between 2007/08 and 2012/13.

Young adults in their 20s saw the biggest dip, with an average wage reduction of 13%, while the 31-59 age group was the least hard-hit with a comparatively low wage decrease of 7%.

Jonathan Cribb, research economist at the IFS, said: ‘Young adults have borne the brunt of the recession. Pay, employment and incomes have all been hit hardest for those in their 20s. A crucial question is whether this difficult start will do lasting damage to their employment and earnings prospects’.

In another report, the Office for National Statistics (ONS) said that workers now reach their earnings peak at the age of 38 – a delay of nine years compared to the same study in the 1970s, when average peak income was reached at 29.

When broken down, the report shows that the average peak income for a woman is £13.19 per hour at the age of 34, while the average peak income for a man is £15.54 per hour at the age of 50.

Individuals in their 20s will have to wait longer for their peak, but the report does show that in real terms the average income has increased significantly since the 1970s, despite the sharp decline in recent years.