date: 26 November 2009
embargo: 00.01hrs Friday 27 November 2009
Half a million fewer workers earning overtime pay
The number of people working paid overtime in the UK has fallen by nearly half a million in the last year to just under four million, a TUC analysis of official figures reveals today (Friday).
Official data shows that in Summer 2009, 15.8 per cent of employees in the UK earned paid overtime, a fall of 1.5 percentage points since Summer 2008. Employees were working an average of six and a half hours paid overtime per week this year, a fall of 12 minutes on 2008.
The average amount of weekly overtime works out at £2,888 a year per employee. Workers across the UK earned a total of £10 billion in paid overtime, £1 billion less than last year.
Further analysis reveals that 55 per cent of the decline in paid overtime is due to job losses, with the other 45 per cent due to employees having fewer opportunities for overtime.
Workers aged 20-24 have experienced the sharpest fall in overtime - 15.9 per cent of young people earned overtime pay in 2009, compared to 20.1 per cent in 2008 - a fall of 474,000.
Employees in manufacturing, transport and communication (broadcasting, TV and radio production, postal workers) - industries that traditionally offer lots of overtime - have all experienced a sharp drop in overtime over the last year of around five percentage points.
The TUC analysis shows that the amount of paid overtime has fallen steadily since records began in 1998, when nearly one in four (24.8 per cent) workers earned paid overtime. The recession has accelerated this decline.
With many people relying on paid overtime to supplement their wages, particularly in the run-up to Christmas when family budgets come under strain, the sharp fall in paid overtime could stretch people's finances even further, says the TUC.
The TUC believes the fall in paid overtime and the average hours worked since the recession are a reflection of the sacrifices that employees, unions and employers have made in order to prevent further job losses.
TUC General Secretary Brendan Barber said: 'These workers are the hidden victims of the recession. Job security remains the number one concern for workers across the country but the sharp drop in paid overtime shows that many people in work are also suffering financially. Even those that are still earning overtime are often no longer able to claim double pay.
'Lots of people rely on overtime pay to earn a decent living. As Christmas approaches, a lack of extra income will put family budgets under even greater strain.
'While many in the City look to their stocks and bonuses as a barometer of the health of the economy, having enough hours of work and overtime pay matter far more to millions of workers and their families.
'Falling unemployment, decent pay rises and the revival of overtime pay are the issues that ordinary workers will use to judge whether our economy has truly recovered.'
NOTES TO EDITORS:
Paid overtime by industry
|
Industry |
Employees working paid overtime 2008 (thousands) |
Employees working paid overtime 2009 (thousands) |
Change 2008-09 (thousands) |
Per cent employees working paid overtime 2008 |
Per cent employees working paid overtime 2009 |
Change 2008-09 |
|
Agriculture and fishing |
58 |
34 |
-24 |
27.8 |
26.1 |
-1.7 |
|
Energy and water |
71 |
124 |
+53 |
22.7 |
26.4 |
+3.7 |
|
Manufacturing |
833 |
533 |
-300 |
25.3 |
20.4 |
-4.9 |
|
Construction |
333 |
292 |
-41 |
21.8 |
20.2 |
-1.6 |
|
Distribution, hotels and restaurants |
855 |
807 |
-48 |
16.8 |
16.4 |
-0.4 |
|
Transport and communication |
460 |
424 |
-36 |
26.5 |
20.6 |
-5.9 |
|
Banking, finance and insurance |
438 |
391 |
-47 |
10.8 |
10.1 |
-0.7 |
|
Public admin, education and health |
1,169 |
1,162 |
-7 |
14.8 |
14.2 |
-0.6 |
|
Other services |
203 |
160 |
-43 |
14.9 |
13.2 |
-1.7 |
Paid overtime by age
|
Age |
Employees working paid overtime 2008 (thousands) |
Employees working paid overtime 2009 (thousands) |
Change 2008-09 (thousands) |
Per cent of employees working paid overtime 2008 |
Per cent of employees working paid overtime 2009 |
Change 2008-09 |
|
16-19 |
211 |
178 |
-33 |
15.8 |
15.6 |
-0.2 |
|
20-24 |
543 |
474 |
-69 |
20.1 |
15.9 |
-4.2 |
|
25-29 |
569 |
541 |
-28 |
19.3 |
18.1 |
-1.2 |
|
30-34 |
473 |
445 |
-28 |
17.5 |
16.9 |
-0.6 |
|
35-39 |
520 |
447 |
-73 |
17.0 |
15.0 |
-2.0 |
|
40-44 |
602 |
519 |
-83 |
18.2 |
16.1 |
-2.1 |
|
45-49 |
525 |
454 |
-71 |
17.0 |
14.7 |
-2.3 |
|
50-54 |
432 |
406 |
-26 |
16.9 |
15.7 |
-1.2 |
|
55-59 |
336 |
289 |
-47 |
15.9 |
13.9 |
-2.0 |
|
60-64 |
175 |
158 |
-17 |
13.7 |
12.4 |
-1.3 |
|
Total |
4,425 |
3,942 |
-483 |
17.3 |
15.8 |
-1.5 |
Source: TUC analysis of unpublished data from the Office of National Statistics Labour Force Survey. The LFS is a quarterly sample survey of 100,000 people in 60,000 households. Those reporting that they work less than 1 hour of paid overtime are excluded from the analysis.
- The TUC is currently looking into levels of unpaid overtime and will be publishing further research on this in the run up to next year's Work Your Proper Hours Day in February 2010.
- All TUC press releases can be found at www.tuc.org.uk
- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet
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 Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk
Press release (900 words) issued 27 Nov 2009
