Exploitative zero-hours contracts are endemic, TUC says
- ONS data shows near record levels of zero hours contracts – 1.2 million, an increase of 55,000 over the year
- The data continues to suggest the jobs market held steady in June, with the employment rate up from 75.0% to 75.1% and the unemployment rate down from 5.0% to 4.9%.
- Redundancies fell by 20,000 to 106,000 in the latest three-month period.
- Youth unemployment remains high at 14.6 % - unchanged over the quarter.
- Vacancies fell by 6,000 over the quarter to 707,000
- Real pay growth was 0.7% against CPI inflation, down from 1.4% in the same period last year. Private sector real pay increased by just 0.1%
Responding to the latest labour market statistics, TUC General Secretary Paul Nowak said:
“Exploitative zero-hours contracts are endemic in this country, with more than 1.2 million people stuck not knowing how much they’re going to earn each week. That’s why the government must deliver on its promise of a right to guaranteed hours for everyone.
“Employers are addicted to this one-sided flexibility. But the vast majority of insecure workers have struggled to meet their basic living costs because they haven’t been offered enough hours – and one in three face a financial hit of at least £3000 a year from cancelled shifts and incurred costs.
“We need to get young people into work – but it isn’t good enough to push them from unemployment into rampant insecurity. No young person benefits from a race to the bottom – they deserve good, secure employment like anyone else.
“It’s time for the government to double down on its plans to make work pay, expand the youth jobs guarantee, and stamp out exploitative zero-hours contracts once and for all.”
Notes to editors:
- A MHCLG survey also reveals that the right to guaranteed hours could make it easier for around 4 in 10 people not in work to return to work.
- The government’s impact assessment on rights to guaranteed hours contracts revealed that 1 in 3 insecure workers report an average loss of more than £3,000 per year – or £250 over four weeks - due to recent issues at work linked to insecurity of hours and income.
- A TUC poll shows the significant hit of insecure work to incomes:
- Nearly two-thirds of those in insecure work said they often or sometimes struggled to meet their basic living costs due to not being offered enough hours
- Over half of all respondents said they were not paid the last time their hours were cancelled. This rose to two-thirds among workers on zero-hours contracts.
- The TUC estimates that the wider benefits of the Employment Rights Act would deliver a £10bn boost to the economy.
- Analysis by the Work Foundation at Lancaster University indicates that a record number of zero-hour contract workers depend on their zero-hour contract for full-time work (32.8%) and are not in full-time education (77%).
- Media credentials for Congress 2026: This year's Congress will be held in the Brighton Centre (Kings Road, Brighton BN1 2GR) from Sunday 13 September to Wednesday 16 September.
Free media passes can be obtained by completing an online form. To request a link to the application form, please contact media@tuc.org.uk.
To avoid a late application fee, please make your application no later than Tuesday 11 August.
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- About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.3 million working people who make up our 47 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.
Contacts:
TUC press office
media@tuc.org.uk
020 7467 1248
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