Lowest paid workers are bearing the brunt of rising dole queues

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date: 7 October 2011

embargo: 00.01hrs Monday 10 October 2011

People previously working in the lowest paid job groups have made up nearly half of the rise in dole queues since 2008, according to a TUC analysis published today (Monday) ahead of the latest official unemployment figures on Wednesday.

The TUC analysis shows that the lowest paid workers have borne the brunt of job losses over the last three years. Sales and elementary service and admin jobs are responsible for 41 per cent of the claimant count rise since 2008, even though they represent less than 20 per cent of the workforce. The two job categories have the lowest pay rates of all occupations at just £6.55 an hour.

The number of dole claimants who have previously worked in sales jobs has almost trebled since the start of the recession in April 2008 to reach 324,625 in August 2011 (the most recent available figures). The number of sales vacancies has also fallen by six per cent over the same period.

Elementary service and admin occupations - such as labourers, bar and catering staff and cleaners - have had the second sharpest rise in claimant count unemployment, almost doubling from 86,250 in April 2008 to reach 168,015 in August 2011.

More than one in ten women work in sales jobs - where they outnumber men by two to one - so further losses in this sector will particular hit women's job prospects in the private sector, at the same time as public sector job losses are disproportionately hitting women, the TUC says.

With unemployment rising and economic growth flat-lining, the pain looks set to continue unless the government reviews its austerity measures and starts prioritising jobs and growth, says the TUC.

The latest labour market figures published by the Office for National Statistics this week are expected to confirm that unemployment is now at its highest level since the mid-90s - and higher than any point during or after the recent recession.

Unemployment currently stands at 2.510 million, and reached a post-2008 peak in November 2010-January 2011 at 2.518 million.

TUC General Secretary Brendan Barber said: 'While millions of people have suffered since the financial crash, those in low-paid work have paid a particularly heavy price in terms of job losses.

'There are over three million people across the UK in sales, admin and service jobs so this sharp rise in unemployment is a major concern. With consumer confidence continuing to fall and the numbers out of work reaching levels last seen in the mid-90s, hopes of a jobs recovery any time soon are looking ever more remote.

'People are desperate to see where new jobs are going to come from. But the government's rigid austerity plan is killing off their job prospects and stifling business growth. The Bank of England has started its plan B, it's time for the Chancellor to catch up and change course.'

NOTES TO EDITORS:

- The NOMIS claimant count and vacancies data uses the 2000 occupational classifications, while the Labour Force Survey uses the 2010 occupational classifications.

- The figures for the claimant count by occupation, 2008-11 are available at www.tuc.org.uk/tucfiles/100/claimantcount.xls

- Further labour market analysis is available at www.touchstoneblog.org.uk

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk

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