BILL WELLS: DEPARTMENT FOR BUSINESS, INNOVATION & SKILLS.

WORK AND PENSIONS SELECT COMMITTEE:Labour market seminar: 26TH February:

‘Trends in part-time working and short-term employment contracts and the impacts on benefit claims.’

BILL WELLS:

DEPARTMENT FOR BUSINESS, INNOVATION & SKILLS.

STRUCTURE OF THEUK BENEFIT SYSTEM:

• The UK Beveridgean system provides a universal basic benefit floor that is more comprehensive than most other countries but less generous.

• And, unusually, not only are the main rates low but they are also flat rate and indefinite in duration.

• Consequently, work generally pays in the UK with over 70% of all working age benefit recipients having a main rate below £100 p.w. whereas fewer than 10% of employees earn less than £100 p.w.

• The situation is complicated if people are also eligible for housing benefit as the rules are different and the amount received does not relate to the individual.

• People on tax credits and, also, eventually Universal Credit are more likely to be on housing benefit.

The UK’s Beveridgean welfare system delivers a relatively universal welfare state including a comprehensive benefit

floor at around 40% of average income…

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

OECD POVERTY RATES:% OF POPULATION BELOW 40% & 50% OF MEDIAN INCOME

40% [2005] 50% [2010]

…but UK main rates of benefits are low by international standards. They are, however, universal and,

unusually, flat-rate and indefinite.

0

10

20

30

40

50

60

70

80

90

100

PE

R C

EN

T

OECD NET REPLACEMENT RATES [WITHOUT HOUSING BENEFIT]: 2011RATIO OF OUT-OF-WORK BENEFITS TO SINGLE PERSON'S TAKE HOME PAY [FOR 67% OF MEDIAN EARNINGS]

START OF CLAIM AFTER 5 YEARS

The main JSA benefit rate is around 12% of mean full time earnings and around 17% of overall median earnings. So, if that benefit is all someone receives they are already very likely to be better off in work- particularly

given the raising of the income tax allowance, eventually to £10,000 p.a.…

0

2

4

6

8

10

12

14

16

18

20

22

% O

F A

VE

RA

GE

EA

RN

ING

S

JOBSEEKER'S ALLOWANCE AS A % OF AVERAGE EARNINGS: AT APRIL:JSA RATE FOR SINGLE PERSON 25 & Over: AVERAGE EARNINGS NES/ASHE: SOURCE DWP/NOMIS

All Employees: Median Earnings Full-time Employees: Mean Earnings

…and whilst there are differences within and between the different working age benefit rates it remains true that only around 5% of

people receive a main rate of benefits of more than £150 per week.

5

1 1

23

58

2

10

10 1 1

21

68

14 4

15

0 02

15

8

50

910

0 1

11

35

5

32

6

0

10

20

30

40

50

60

70

80

£0 0-£20 £20-£40 £40-£60 £60-£80 £80-£100 £100-£150 £150 & Over

PE

R C

EN

T

DISTRIBUTION OF WEEKLY AMOUNT OF MAIN OUT-OF-WORK BENEFITS: MAY 2013: WORKING AGE BENEFITS: SOURCE: DWP TAB TOOL

JSA LONE PARENT & OTHER ON IS ESA/IB/SDA TOTAL

…with only around 15% of employees earning less that £150 p.w. and less than 10% earning less than £100 p.w.

GROSS AND NET WEEKLY WAGES: ALL EMPLOYEES: SOURCE ASHE 2013:NET WAGES = GROSS WAGES NET OF INCOME TAX AND EMPLOYEE NATIONAL INSURANCE CONTRIBUTIONS:

£0

£150

£300

£450

£600

£750

£900

£1,050

£1,200

£1,350

£1,500

£1,650

£1,800

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

Percentile

Gross Weekly Wages Wages Net of Income Tax and NICs

However, for people receiving housing benefit then replacement rates are not as low by international standards and out of work

income is higher and ‘Making Work Pay’ is more difficult – both at the start and throughout the claim…

0

10

20

30

40

50

60

70

80

90

100

PE

R C

EN

T

OECD NET REPLACEMENT RATES [WITH HOUSING BENEFIT]: 2011RATIO OF OUT-OF-WORK BENEFITS TO SINGLE PERSON'S TAKE HOME PAY [FOR 67% OF MEDIAN EARNINGS]

START OF CLAIM AFTER 5 YEARS

…also the structure of housing benefit is more complex than the main benefit rates. It is based not on individual circumstances but on the rent; is not always flat-rate; and it can be paid in and out of work.

This complexity does not help the ‘Making Work Pay’ agenda…

63%

16%

21%

0%

10%

20%

30%

40%

50%

60%

70%

Out of Work: On Main Benefit Out of Work: Not on Main Benefit In Work:Not on Main Benefit

PROPORTION RECEIVING HOUSING BENEFIT BY EMPLOYMENT STATUS AND WHETHER ALSO ON A MAIN BENEFIT (PASSPORTED OR NOT): %:

SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

…and with a supplement to the main benefit rate of usually around £50-£125 p. w. it is generally people in receipt of housing benefit that need income supplements in the form of tax credits whilst in work.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

IN RECEIPT OF:

HOUSING BENEFIT BY MAIN PASSPORTING BENEFIT AND SIZE OF AWARD: %: SOURCE: DWP HOUSING BENEFITS.

JSA LONE PARENT & OTHER IS BENEFITS ESA PENSION CREDIT TOTAL

STRUCTURE OF EMPLOYMENT

• The UK’s ‘light and even’ employment regulation system sets universal basic minimum standards to prevent exploitation whilst allowing workers and employers the freedom to set the terms & conditions that suit them both.

• This delivers a system which is both dynamic – there is a lot of voluntary turnover – and diverse – there are a very wide range of types and patterns of employment.

• The system has helped to deliver both a high employment rate and also high for all age and sex groups…

• …and levels of satisfaction with all forms and types of work in the UK tends to be higher than in most other countries.

In terms of employment the UK’s ‘light and even’ employment regulation regime enables workers to move in and out of work easily. Consequently, there are always vacancies coming up as part of the high natural turnover

in the UK…

HIRING & SEPARATION RATES: OECD ESTIMATES:Annual Average: 2000-2007

0

5

10

15

20

25

30

GreHun It

Svk SlvCze Bel

Ger NorAus

PorSwi

FraSwe

PolHol

Ire UK Fin USCan Sp

Den Ice

Per

Cen

t

Hiring Rate Separation Rate

…and, in general, workers tend to find a job that tends to suit them. So, for example, the UK has relatively few workers who are

in forms of work that are generally not well regarded by the people in them – here temporary work…

0

4

8

12

16

20

24

28

PE

R C

EN

T

PERCENTAGE OF EMPLOYEES THAT ARE TEMPORARY:2012:OECD ESTIMATES

In addition, as there are few legislative restrictions on types of work in the UK it has a greater range in work patterns – for example, on hours. This diversity means that when workers look for work they have more opportunities to find a job that suits their personal circumstances…

UK

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Usual Hours Worked

Germany

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Usual Hours Worked

France

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Usual Hours Worked

Italy

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Usual Hours Worked

This wider range of opportunities provided by the UK’s ‘light and even’ employment regulation system has helped to deliver not only a

high overall employment rate but also generally higher rates for all age and sex groups (except the oldest)…

0

10

20

30

40

50

60

70

80

90

100

PE

R C

EN

T

EMPLOYMENT RATES BY AGE AND SEX: 2012: OECD ESTIMATES

UK OECD AVERAGE

…but also UK workers tend to be more satisfied with their circumstances. For example, the proportion of involuntary part-

timers is low internationally suggesting that workers are more likely to find a type of job that suits both them and their employer...

0

10

20

30

40

50

60

70

PE

R C

EN

T

SHARE OF INVOLUNTARY PART-TIMERS AS % OF ALL EMPLOYEES:2012:OECD ESTIMATES

EMPLOYMENT PERFORMANCE DURING AND SINCE THE RECESSION.

• The UK’s ‘light and even’ employment regulation has also helped the UK to show resilience during and since the recession.

• Employment levels are already above pre-recessionary levels despite GDP not having reached its previous peak…

• …and this is not because of labour hoarding. Average hours worked are as high as they were when employment peaked in early 2008.

• In fact, for adults, employment has grown even faster than population. The employment rates for age groups 25-64 and 65 & over are already above the pre-recessionary levels of 2008…

• …whilst for young people aged under 25 leaving education there remains a major problem making the transition into work or further/ higher education…

• …whilst, for youngsters who have made the transition, worklessness is already close to pre-recessionary levels.

Employment is above its pre-recessionary peak. And as total hours have growth even faster there is, therefore, little sign of labour

hoarding due to involuntary part time working. Average hours are now at or above 2008 levels…

94

96

98

100

102

104

106

IND

EX

: A

PR

IL 2

008

= 1

00

MONTH IS MID MONTH OF THE QUARTER

EMPLOYMENT, TOTAL & AVERAGE ACTUAL HOURS WORKED: INDEX: APRIL 2008 =100: SOURCE LFS: SEASONALLY ADJUSTED

EMPLOYMENT TOTAL ACTUAL HOURS WORKED AVERAGE ACTUAL HOURS WORKED

The UK’s ‘light and even’ employment regulation has also helped the UK to show resilience during and since the recession. Those aged

25-64 and 65 & over are already above pre-recessionary levels…[But as there has been a population shift towards those aged 65 & over the overall

employment rate for all aged 25 & over are not quite above pre-recessionary levels.]

0

2

4

6

8

10

12

68

70

72

74

76

78

80

Per

Cen

t

Per

Cen

t

EMPLOYMENT RATES: AGES 25-64 & 65 & OVER:SOURCE LFS: SEASONALLY ADJUSTED

Aged 25-64 Years [LHS] Aged 65 & Over [RHS]

The recession stimulated more young people to stay in education and the higher staying on rates have been maintained since. This tends to reduce the overall employment rate because the employment rate for

people in full time education are lower than for those who do not.

24

26

28

30

32

34

36

38

40

42

44

PE

R C

EN

T

PROPORTION OF UK POPULATION IN FULL TIME EDUCATION:16-24 YEARS: LFS SEASONALLY ADJUSTED

However, a major problem remains for young people leaving education. They are taking longer when they leave education to either move into

further/higher education or to move into work. Their experience differs from that of young people who have successfully entered the labour market – and had a job. Amongst this group the numbers are already

close to pre-recessionary lows.

0

200

400

600

800

1,000

TH

OU

SA

ND

S

WORKLESS UNDER 25 NON-STUDENTS: BY WHETHER HAD PAID JOB OR NOT: SOURCE LFS: AGE 16-24 EXCLUDING THOSE IN FULL-TIME EDUCATION: 4 QUARTER AVERAGE: BIS ESTIMATES

HAD A JOB (Inc. Missing Values) NEVER HAD A JOB (Inc. Missing Values)

REASONS FOR THE UK’S GOOD EMPLOYMENT PERFORMANCE: DEMAND OR SUPPLY?

• Increased hiring is the main cause of the UK’s good employment performance as workers have taken up ‘Second Choice’ jobs rather than remain unemployed.

• During the recession the fall in labour demand led to both involuntary job losses and some short time working. However, the scale of the job losses was much greater than the hours reduction.

• As demand has picked up both of these aspects – job losses and short-time working - have improved and are now moving towards pre-recessionary levels.

• However, there has also been a substantial rise in ‘Second Choice’ jobs - part timers who would prefer to work full-time and self employed.

Involuntary job losses rather than hours reductions was the main response to the fall in labour demand during the recession. However, subsequently, redundancies and other involuntary separations have

fallen back and total separations are now at pre-recessionary levels…

1.2

1.6

2.0

2.4

2.8

3.2

3.6

4.0

4.4

MIL

LIO

NS

JOB SEPARATIONS: ANNUAL FLOWS OUT OF EMPLOYMENT: AGE 16-64: LFS EXPERIMENTAL SERIES: N.S.A.

To ILO Unemployment To Economic Inactivity All Outflows

…and although there was some rise in short-time working/lay-offs during the recession it was small relative to the fall in employment.

Since 2010, the hours reductions due to economic reasons has been falling back towards pre-recessionary levels.

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

0

50

100

150

200

250

300

TH

OU

SA

ND

S

NUMBER WORKING LESS THAN USUAL HOURS AS: ON SHORT TIME OR LAID OFF FOR ECONOMIC REASONS:

LFS: 4 QUARTER AVERAGE

Total [LHS] Working Less than Usual as Short-Time [LHS]

Worked Zero Hours as Laid Off [LHS] Total as % of All Employment [RHS]

The fall in labour demand in the recession is replicated by the fall in the numbers who remained in their job. Again, since 2010 the

numbers staying in work have picked up and they are also now above pre-recessionary levels…

24

25

26

27

28

29

Mill

ion

s

REMAINED IN EMPLOYMENT FROM PREVIOUS QUARTER:LFS FLOWS: AGED 16-64: N.S.A.: EXPERIMENTAL SERIES

…and the type of jobs that fell during the recession - both (voluntary) part time workers and, particularly, full-time employees - are those most associated with falls in labour demand. Although there has

been strong growth recently, the job losses have not been recouped.

-1,200

-1,000

-800

-600

-400

-200

0

200

TH

OU

SA

ND

S

EMPLOYMENT CHANGE SINCE APRIL 2008: 'DEMAND TYPE' JOBS' LFS

SUM OF 'DEMAND TYPE' JOBS FT EMPLOYEES PT WORKERS WHO DIDN'T WANT FT

A rise in hiring is the main reason for the recent good employment performance. This rise was concentrated amongst people moving from ILO unemployment into a job. As this was during a period of low/no growth it suggests a supply rather than a demand effect…

1.2

1.6

2.0

2.4

2.8

3.2

3.6

4.0

4.4

MIL

LIO

NS

HIRINGS: ANNUAL FLOWS INTO EMPLOYMENT: AGE 16-64: LFS EXPERIMENTAL SERIES: N.S.A.

From ILO Unemployment From Economic Inactivity All Inflows

…but the recession seems to have increased the number of workers willing to take up ‘Second Choice’ vacancies rather than remain unemployed. It seems to have largely been their choice

rather than having been imposed on them by their businesses…

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

TH

OU

SA

ND

S

EMPLOYMENT CHANGE SINCE APRIL 2008: SUPPLY-SIDE 'SECOND CHOICE' JOBS: LFS

Sum of 'Second Choice' Jobs PT Workers who Want to Work FT Second Jobs Self Employed

…and some of the growth in the numbers of part-timers who would like to work full-time has been amongst people who are

part-time self employed workers . Some of this may be because they took up these jobs as they were unable to get a job as a full

time employee

PART-TIMERS WHO WOULD LIKE TO WORK FULL TIME: BY SELF EMPLOYMENT AND EMPLOYEE STATUS: CHANGE SINCE Q2 2008

SOURCE LFS: NOT SEASONALLY ADJUSTED

0

100

200

300

400

500

600

700

Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013

Th

ou

san

ds

Employee Self-Employed

INTERACTION BETWEEN BENEFIT SYSTEM AND PEOPLE WORKING SHORT HOURS OR WORKING PART-TIME

WHEN THEY WISH TO WORK FULL-TIME.

• The employment growth amongst part time workers who wanted to work full time has mostly been amongst workers working 16 hours or more – ensuring a minimum weekly wage of around £100 p. w. .

• This together with the growth in self-employment and, more recently, full-time employees, may generally mean that most people are better off in work than on benefits.

• However, this is not the same as saying that they regard their current work and the resulting income as satisfactory.

Fewer than 10% of employment usually work less than 16 hours per week. At minimum wage rates 16 hours or more ensures a minimum of around £100 p.w. – which is higher than benefit payments to more

than 70% of benefit recipients on the main rates of benefits…

1.66.7

19.9

52.0

19.8

0

10

20

30

40

50

60

Under 6 Hours 6-15 Hours 16-30 Hours 31-45 Hours Over 45 Hours

PE

R C

EN

T

NUMBERS IN EMPLOYMENT BY USUAL HOURS:OCTOBER TO DECEMBER 2013: SOURCE: LFS: SEASONALLY ADJUSTED

…and not only is the growth in employment over more than two decades has been amongst workers who usually work more than

16 hours per week…

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

TH

OU

SA

ND

S

MONTH IS MID MONTH OF THE QUARTER

EMPLOYMENT BY USUAL HOURS: CHANGE SINCE APRIL 1992: SOURCE: LFS: SEASONALLY ADJUSTED

0-6 HOURS 6-15 HOURS 16-30 HOURS 31-45 HOURS OVER 45 HOURS

…and the growth in the numbers of part-timers who would prefer to work full-time since the recession has been amongst workers

who usually work at least 16 hours per week…

PART TIME WORKERS WHO WOULD PREFER TO WORK FULL TIME:BY USUAL HOURS WORKED: CHANGE SINCE Q2 2008:


-100

0

100

200

300

400

500

600

Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013

Th

ou

san

ds

Unknown Less than 16 16 - 30 Over 30

…and part time workers who want more work generally want a lot more work. This suggests that the issue is not the interaction with the benefit system that is of most importance but raising

their income significantly.

PART TIMERS WHO WOULD LIKE TO WORK FULL TIME: BY JOBSEARCH AND WORK PREFERENCES:


0

200

400

600

800

1,000

1,200

1,400

1,600

Q1 2008 Q1 2013 Q4 2013

TH

OU

SA

ND

S

Missing

Would not like more hours incurrent job

Would like more hours in currentjob

Looking for an additional job

Looking for replacement job, nopreference for more hours

Looking for replacement (different)job, would prefer more hours

Looking for different job with morehours

INTERACTION BETWEEN BENEFIT SYSTEM AND PEOPLE WORKING VARIABLE HOURS

– INCLUDING ZERO HOURS CONTRACTS.

• Variable hours of work – if they lead to variable income – can cause issues when they interact with the benefit system. Workers with variable hours include those on zero hours contracts but are not exclusive to this form of contract.

• Zero hours contracts and other forms of variable hours contracts are more likely to provide opportunities to workers who are probably not on benefits – students and 3rd or 4th earners in a household…

• …however, there are also likely to be more problems with zero hours and other variable hours contracts. More of them would prefer to work longer and more are actively looking. But not many more of them actually have a second job.

In terms of zero hours contracts it is the variability of the hours (and pay) on offer which is important rather than the precise nature of the contracts themselves. For example, ONS have indicated that the apparent doubling of such contracts in the last year is due, at

least in part to publicity raising awareness of this type of contract…

0

100

200

300

400

500

600

700

TH

OU

SA

ND

S

NUMBER OF ZERO HOURS CONTRACTS:SOURCE: LFS: OCTOBER TO DECEMBER: NOT SEASONALLY ADJUSTED

2013 ONS ESTIMATE ONS: 2000 TO 2012 BIS ESTIMATE 1997-1998

…and it is very rare that people on zero hours contracts have usual hours that are zero.

583542

80

100

200

300

400

500

600

700

Total of which Employees of which number usuallyworking zero hours

TH

OU

SA

ND

S

ZERO HOURS CONTRACTS: BY EMPLOYEES WHOSE USUAL HOURS ARE ZERO:SOURCE: LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

In addition, it is not just zero hours contracts where actual hours worked differ from usual hours. However, workers on zero hours

are more likely to work fewer actual hours than usual hours…

0%

10%

20%

30%

40%

50%

60%

10+ hrsfewer

5-9 hoursfewer

3-4 hoursfewer

1-2 hoursfewer

Same asusual

1-2 hoursmore

3-4 hoursmore

5-9 hoursmore

10+ hrsmore

Unknown

DIFFERENCE BETWEEN ACTUAL AND USUAL HOURS: BY ZERO HOUR CONTRACT: %SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

ZERO HOURS CONTRACTS NON-ZERO HOURS CONTRACTS

…and workers on zero hours contracts are more likely to work zero hours and fewer than 15 hours per week. ..

0%

5%

10%

15%

20%

25%

30%

35%

40%

No hours 1-4 hrs 5-9 hrs 10-14 hrs 15-19 hrs 20-29 hrs 30-39 hrs 40-49 hrs

WEEKLY HOURS ACTUALLY WORKED BY ZERO HOURS CONTRACT: %SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED


…but, because zero hours contracts are a very small part of overall employment zero hours/short hours are much more

prevalent amongst workers who are not on zero hours contracts than amongst workers who are…

0

500

1,000

1,500

2,000

2,500

3,000

No hours 1-4 hrs 5-9 hrs 10-14 hrs

TH

OU

SA

ND

S

WEEKLY HOURS ACTUALLY WORKED BY ZERO HOURS CONTRACT: 000sSOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED


In the labour market as a whole the numbers working less than usual hours because employers vary their hours have fallen over time. However, within

this total, there has been a growth of around 100-150 thousand in the number working zero hours.

0

50

100

150

200

250

300

350

400

3.8

3.9

4.0

4.1

4.2

4.3

4.4

4.5

4.6

TH

OU

SA

ND

S

MIL

LIO

NS

NUMBER WORKING LESS THAN USUAL HOURS DUE TO: VARIABLE HOURS:LFS: 4 QUARTER AVERAGE

Total [LHS] Worked Less than Usual Hours [LHS] Worked Zero Hours [RHS]

Variable hours contracts – including zero hours contracts – can provide opportunities for workers who are unlikely to be on benefits. For example, a quarter of zero hours contracts are taken up by students compared to less

than 10% of workers not on zero hours contracts…

18%

3%

7%

5%

75%

92%

0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


PROPORTION IN EDUCATION BY ZERO HOUR CONTRACT STATUS: SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

In Full-Time Education In Part-Time Education Not in education Unknown

…also, people on zero hours contracts are also slightly more likely to be in households where two or more other people are

working - households which are unlikely to be on benefits.

27% 26%

46% 53%

27%22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


NUMBER OF OTHER WORKERS IN HOUSEHOLD BY ZERO HOUR CONTRACT STATUS: %:SOURCE LFS: OCTOBER TO DECEMBER 2012: NOT SEASONALLY ADJUSTED:

[NOTE FIGURES RELATE TO 2012 AS 2013 NOT YET AVAILABLE]

Only worker One other 2+ others

However, there are also more signs of potential problems in zero hours contracts. There are more likely to want to work or need more

hours - 37% compared to 13% - including 16% who are actively looking…

10%

2%6%

1%

21%

10%

62%

86%

2% 2%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


NEED MORE WORK AND JOBSEARCH BY ZERO HOURS CONTRACT STATUS: %: SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

Need More Hours & Looking Prefer More Hours & Looking Prefer More Hours but Not Looking

Don't Need More Hours Unknown

…and 13% of the ZHC contracts with zero hours report in the LFS that they are temporarily away from work [the category we think is

the most likely to contain any exploitation.]

13%8%

87%92%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


PROPORTION OF WORKERS WHO ARE TEMPORARILY AWAY FROM WORKBY ZERO HOURS CONTRACTS: %:

SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

Temporarily Away Other

…and not many people on zero hours contracts have succeeded in getting a second job – although it is greater than other workers.

We do not, however, know whether this is due to restrictions associated with exclusivity contracts.

6% 4%

94% 96%

0% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


PROPORTION WITH SECOND JOBS: BY ZERO HOURS CONTRACT STATUS: SOURCE LFS: OCTOBER TO DECEMBER 2013: NOT SEASONALLY ADJUSTED

Second job No second job Unknown

CONCLUSIONS• The UK’s labour market system of benefits, employment regulation

and National Minimum Wage are all structured around providing universal basic minimum standards.

• And this combined with a long standing traditions of allowing workers and employers to determine their own terms & conditions is currently delivering a system where the majority of people are better off in work than on benefits; employment overall and for all age groups is high by international standards; and the employment record during and since the recession has been good.

• However, there is still more to do. Including:-– Helping young people make the transition from education to work more

easily and quickly; and

– there are a significant number who would prefer to work more hours both amongst those who usually work more than 16 hours a week – who have taken up a ‘Second Choice’ job rather than stay unemployed;

– and amongst workers whose variable hours – including zero hours contracts – mean that their hours are low or they are not working.

BILL WELLS: DEPARTMENT FOR BUSINESS, INNOVATION & SKILLS.

Documents