Low-paid workers on jobs ‘rollercoaster’
The coronavirus crisis has created a jobs "rollercoaster" for low-paid workers, who have been worst affected by the pandemic, according to a new report.
The coronavirus crisis has created a jobs "rollercoaster" for low-paid workers, who have been worst affected by the pandemic, according to a new report.
Those on low pay are now returning to work fastest in the recovery but face the dual risks of rising unemployment and high job insecurity later this year and beyond, the Resolution Foundation said.
The think tank said low-paid workers have been at the heart of the Covid economic crisis.
In March, the lowest-paid workers were more likely to have lost their job, been furloughed or faced a cut to their hours and pay than the highest paid, according to the report.
Further increases in the national living wage are set to endlowpaybythemiddleofthe decade, but while the outlook for low-paid workers is better than last year, the foundation warned that big risks lie ahead in the wake of the crisis.
Unemployment is expected to rise following the end of the furlough scheme in September and low-paid workers face the highest risk of losing their jobs later this year, it was warned.
The foundation said that given the turmoil experienced by low paid workers during the crisis, the Government should offer a new post-pandemic contract for them.
Nye Cominetti, senior economist at the Resolution Foundation, said: "Low-paid workers have been at the heart of the economic crisis. in the run-up to the reopening of the economy, one in five workers had either lost their jobs, been put on furlough or taken a major pay hit.
"Fortunately, low-paid workers also look set to beat the heart of the recovery by coming off furlough in huge numbers and returning to their previous jobs.
"However, big risks still lie ahead. Low-paid workers are most at risk from the expected rise in unemployment later this year, which also risks causing greater job insecurity.
"The Government can salute the vital contribution of Britain's low-paid workers by offering them a new post-pandemic settlement - from better pay via a higher national living wage to greater security of working hours, and proper enforcement to tackle labour market abuses ."
TUC general secretary France so' grady said :" the pandemic has exposed the terrible working conditions low-paid workers across Britain face. Many have lost their jobs. Many have worked in frontline roles – in sectors like social care – on poverty pay and insecure contracts, and many have been unable to afford to self-isolate when sick."
Gary Smith, newly-elected general secretary of the GMB, said: "The pandemic has exposed the deep inequalities in the UK economy after a decade of politically-driven austerity.
"It's just wrong that carers are paid less than £10 an hour and millions in the so-called gig economy don't even have basic employment rights, never mind decent pay. A furlough cliff-edge will also exacerbate pay inequality, increase unemployment and damage the credibility of the Government's 'levelling-up' agenda - killing off a recovery before the country gets back on its feet."
Unison general secretary Christina Mcanea said: "The Government must ensure every employer in the sector pay sits staff atleast there alliving wage.
"Fixing the problem of inadequate sick pay – that's forced care staff to carry on working when they should have been off isolating –should be a close second,” she added.