Wednesday, February 17, 2010

One in ten 'underemployed' as record 2.8m workers trapped in part time jobs

A record 2.8million workers are trapped in unsatisfying or lowly paid part-time jobs.

One in ten of the workforce - including thousands of graduates with good degrees - settle for work which either does not match their skills or financial need, according to the Office of National Statistics.

The number in so-called 'underemployment' has soared by 600,000 in just a year as the recession forces more people to accept fewer hours and take home less pay.

A woman sitting in front of a laptop

Frustration: The total number of people with part-time jobs in the UK is 7.7million - some would like to work more

Many work in retail, fast food chains or security. Their low income means they have no chance to save money to afford a home and start a family.

Many analysts are surprised the official unemployment rate of 2.6million has not surged to 3million in the recession.

It seems the figure would be much higher but for the millions of people who would rather be underemployed than on the dole.


It will have been inflated in the past year by the number of companies that have cut the working hours of staff.

In many cases this option was considered a better alternative to announcing job losses.

The Economic & Labour Market Review, which is published by the ONS today, calculates that 9.9 per cent of the British workforce say they want to work longer hours but are unable to do so.

The 2.8million are a mix of people currently in part-time jobs and others who were previously employed full-time but have had their hours cut because of the recession.

It may be that their employer is unwilling to extend their hours, they cannot find other work with longer hours or they cannot find a second job.

The total number of people with part-time jobs in the UK is 7.7million. Most are happy with this arrangement.

However, some 2.2million want to work longer hours for their existing employer, while 349,000 want a new job with longer hours and 279,000 want a second job.

The volume of underemployment in terms of extra work wanted is 31.6million hours, which equates to 790,000 people working a 40-hour week.

The publication said the onset of the recession in 2008 'meant new job offers were scarce and existing jobs were cut back'.

It added this 'will have forced some people to take work that did not meet their needs'.

Last night Tory Shadow Work and Pensions Secretary Theresa May urged ministers to 'help white collar workers'.

Otherwise 'thousands of professionals will become another forgotten statistic', she added.

Lib Dems said rising underemployment allowed the Government to make false claims about its efforts to tackle the recession.

Party spokesman Steve Webb said: 'Ministers are guilty of playing down the impact of the recession on working people by ignoring underemployment.'

No comments:

Post a Comment