EMPLOYEE PAID BELOW THE LIVING : 2020 Foundation

November 2020 ACKNOWLEDGEMENTS 1 AND DATA SOURCES 3 2 SUMMARY 4 3 INTRODUCTION 5

THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING 4 WAGE AND TRENDS OVER TIME 6 5 DATA TABLES 14 6 METHODOLOGY 28 1 ACKNOWLEDGEMENTS AND DATA SOURCES

This report has been produced by the , using published data from the Office for National Statistics’ Annual Survey for Hours and Earnings. The methodology section at the end of this report sets out how the data was used to produce the results presented here.

This is the ninth annual update on employee jobs paid below the Living Wage. Previous reports have been produced by KPMG and IHS Markit,1 and this report draws on the analysis and approaches in those reports. The Living Wage Foundation is grateful to both KPMG and IHS Markit for this previous analysis.

p. 3 2 SUMMARY

The real Living Wage is the only UK benchmarked to the cost of living. were more likely to be paid below rates in these sectors are likely to wage rate calculated based on what the Living Wage in April 2020 than have been pushed up this year by it costs to live. This report explores Our analysis finds that: those held by men (16.6 per cent). a high incidence of furloughing the number and proportion of This gap has narrowed slightly without pay being topped up by employee jobs paid below the Living • 20.3 per cent of employee jobs in since 2012 and continued to narrow employers. Wage according to the UK’s best the UK (5.5 million jobs) were paid between 2019 and 2020. But still earnings data (the Annual Survey below the Living Wage in April 2020 60 per cent of below-Living-Wage • Because the wholesale and retail of Hours and Earnings), in order to – broadly unchanged from 2019, jobs (3.3 million jobs) were held by sector is much larger than the assess the incidence of low pay, and when the figure was 20.0 per cent women in April 2020. hospitality and arts, entertainment trends across groups and over time. (5.5 million jobs). and recreation sectors, it accounted • Part-time jobs (35.9 per cent, or 2.8 for the largest number of below- The latest data relates to April 2020, • The region with the highest million jobs) were much more likely Living-Wage jobs (1.3 million). when the Living Wage was £9.30 proportion of employee jobs paid to be paid below the Living Wage in across the UK and £10.75 in London. below the Living Wage in April 2020 April 2020 than full-time jobs were • The highest rates of jobs paid below This was a time when the initial was (25.3 per cent), (14.0 per cent). This gap has also the Living Wage in April 2020 were coronavirus lockdown was severely followed by the East Midlands (23.1 been narrowing over the course of in elementary administration and affecting the labour market, not per cent), Yorkshire and the Humber the decade. service occupations (e.g. postal least in terms of a large number (22.8 per cent), and the North East workers, cleaners, waiters and of employees being furloughed. (22.5 per cent). Scotland now has • The hospitality sector had the waitresses, and bar staff – 61.1 per However, this data (which includes the lowest proportion of employee highest proportion of jobs paid cent); sales occupations (56.1 per furloughed employees) still provides jobs paid below the Living Wage below the Living Wage in April 2020 cent); and leisure, travel and related a comprehensive and up-to-date (15.2 per cent). (70.8 per cent), followed by the arts, personal service occupations (e.g. picture of the incidence of hourly entertainment and recreation sector hairdressers, caretakers and travel pay rates that fall below those • Jobs held by women (23.8 per cent) (36.8 per cent). Below-Living-Wage agents – 50.5 per cent). p. 4 3 INTRODUCTION

The real Living Wage is for a decent standard of living and existed. It is based on analysis this report details how the ONS has independently calculated based to participate fully in society.2 The of the Annual Survey of Hours and handled these circumstances in its on what is costs to live. There is a calculation is overseen by the Living Earnings (ASHE) from the Office presentation of the ASHE statistics rate for the UK and a higher rate Wage Commission. The 2020-21 rates for National Statistics (ONS) – the this year. Due to the impact of for employees working in London, will be announced on 9 November most comprehensive source on the coronavirus pandemic on the reflecting the higher costs of living 2020. earnings among UK employees. labour market, the latest ASHE in the capital. The Living Wage is We present results over time and data requires careful interpretation, paid voluntarily by almost 7,000 The Living Wage compares to a UK disaggregated by region (and other and changes from previous years employers who choose to go beyond for people aged 25 geographies), gender, hours, industry should be assessed with a degree the government minimum and do and over (introduced in 2016 and and occupation. The methodology of caution. Nonetheless, ASHE data right by workers and their families. known as the ‘’) section at the end of this report for April 2020 still gives an accurate Over 250,000 employees have of £8.72 as of April 2020, and with provides details on the approach and comprehensive snapshot of the received a pay rise as a result of the National Minimum Wage rates of taken. incidence of pay below the Living Living Wage. £8.20 for 21-24-year-olds and £6.45 Wage (including among furloughed for 18-20-year-olds. The data for April 2020 is somewhat employees). This report therefore The 2019-20 Living Wage rates – more challenging to interpret than provides a detailed assessment announced in November 2019 – are This report contains analysis of the in previous years, due to the initial of that data, while setting out the £9.30 across the UK and £10.75 in number and proportion of employee coronavirus lockdown and the coronavirus-related (and other) London. The rates are calculated jobs paid below the Living Wage in profound impact of the Coronavirus considerations that should be borne annually by the Resolution April 2020 and each year previously Retention Scheme (the in mind when interpreting it. Foundation based on a social back to April 2012 – the first year in scheme) on employee jobs. The consensus of what people need which both UK and London Living methodology section at the end of

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THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME p. 6 THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME

Table 1: Employee jobs paid below the Living Wage: UK

by the initial coronavirus lockdown, OVERALL TRENDS Median Number of Proportion UK Living London and the furlough scheme was in Year Jobs hourly wage jobs below of jobs (000s) Wage Living Wage The ONS estimates that 20.3 per cent widespread use (furloughed workers (nominal) Living Wage below (000s) Living Wage of all employee jobs in the UK (5.5 are included in this data – see the million jobs) were paid less than the methodology section at the end April 2012 24,203 £11.28 £7.20 £8.30 4,805 19.9% Living Wage in April 2020, compared of this report for details). to 20.0 per cent (5.5 million jobs) in April 2013 24,575 £11.59 £7.45 £8.55 5,151 21.0% April 2019. Table 1 and Figure 1 show Changes in the proportion of these trends, and put them in the employee jobs paid below the Living April 2014 25,036 £11.61 £7.65 £8.80 5,644 22.5% context of changes since 2012. Wage over the latest year of1 data are therefore affected by small April 2015 25,997 £11.78 £7.85 £9.15 6,162 22.8% The number and proportion of ‘compositional’ effects from lower- employee jobs paid below the Living paid employees being more likely April 2016 25,758 £12.16 £8.25 £9.40 6,224 23.2% Wage has been stable over the past to have stopped working or been year, after rising slightly during the absent from work (or not yet have April 2017 26,241 £12.47 £8.45 £9.75 6,023 22.2% early 2010s; flattening between 2015 been put on furlough) in April this and 2018; and falling between 2018 year; and the fact that pay was April 2018 26,424 £12.77 £8.75 £10.20 6,297 22.9% and 2019. temporarily lower for furloughed employees whose employers did April 2019 26,703 £13.28 £9.00 £10.55 5,540 20.0% As discussed in the introduction to not top the government furlough 3 this report, the latest ASHE data contribution up (amplified by the April 2020 26,019 £13.68 £9.30 £10.75 5,515 20.3% covers a period in which economic fact that lower-paid workers were 4 activity was severely constrained most likely to be furloughed). Notes: Data for April 2020 is provisional. The number and proportion of jobs paid below the Living Wage has been published by ONS for 2015 onwards; figures for 2012-14 are estimated from published ONS tables by the Living Wage Foundation. See the methodology section for further details. Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. p. 7 THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME

Number of jobs below Figure 1: Employee jobs paid Living Wage (left axis) below the Living Wage: UK Proportion of jobs below Living Wage (right axis)

All else equal, the former acts to Because furloughed employees’ 8m 24% push down the proportion of workers hourly wages were calculated paid below the Living Wage, while based on pre-pandemic hours, the latter pushes it up. the result was a large increase in 7m 21% the proportion of employee jobs 6.3m The actual outcome was little change paid below the relevant statutory 6.2m 6.2m 6m 6m 18% in the proportion of jobs paid below minimum wage rate – from 1.4 per 5.6m the Living Wage between 2019 and cent in 2019 to 7.2 per cent (2 million 5.5m 5.5m 5 5.2m 2020. ONS analysis suggests that jobs) in 2020. This suggests that 5m 15% this is largely because the impacts while the number and proportion of 4.8m of furlough pay not being topped up low-paid (below Living Wage) jobs 4m 12% were felt most strongly at the very did not increase markedly during bottom of the hourly pay distribution the initial lockdown in April 2020, the (particularly among the 10 per cent depth of low pay did. 3m 9% lowest-paid part-time jobs). In other words, reductions in hourly pay due REGION, NATION 2m 6% to furloughing mainly affected jobs AND LOCAL AUTHORITY that were paid below the Living 1m 3% Wage already (although in some Table 2, Table 3, Table 4 and Table sectors, furlough pay not being 5 in the data tables section of this topped up does seem to have had report summarise the latest data 0m 0% more of an impact on below-Living- and trends over time in the number Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Wage rates – as we discuss below). and proportion of jobs paid below Notes: Data for April 2020 is provisional. The number and proportion of jobs paid below the Living Wage has been published by ONS for 2015 onwards; figures for 2012-14 are estimated from published ONS tables by the Living Wage Foundation. See the methodology section for further details. Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. p. 8 THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME

Figure 2: Employee jobs paid below the Living Wage: By region in selected years the Living Wage across the regions more pronounced increase in the Northern Ireland and nations of the UK. These proportion of jobs paid below the 25.3% trends are summarised in Figure 2, Living Wage since 2012 than other East Midlands 23.1% which shows that Northern Ireland regions or nations (or the UK as a Yorkshire and has consistently had the highest whole) – from 16.2 per cent to 19.5 the Humber 22.8% proportion of employee jobs paid per cent in 2020.6 below the Living Wage (24.4 per North East 22.5% cent in 2012, rising to 25.3 per cent in We can also assess employee jobs Wales 2020), followed by the East Midlands, paid below the Living Wage across 22.4% Yorkshire and the Humber and the local authorities, metropolitan West Midlands 21.9% North East. counties and parliamentary South West 21.8% constituencies (apart from for A further fall between 2019 and Northern Ireland). The 25 local North West 21.4% 2020 means that Scotland now has authorities with the highest 20.3% the lowest proportion of employee proportions of employee jobs paid East April 2012 jobs paid below the Living Wage below the Living Wage are shown 19.7% (15.2 per cent in April 2020), with the in Table 7 in the data tables section London 19.5% South East, London and the East of of this report. The local authority April 2019 South East 16.6% England also experiencing rates of in Great Britain with the highest jobs paid below the Living Wage that proportion of employee jobs below Scotland 15.2% April 2020 are lower than the UK average. the Living Wage is Bexley in London, where over two-fifths (43.8 per cent) 0% 5% 10% 15% 20% 25% 30% London has experienced a much of jobs paid below the Living Wage Notes: Data for April 2020 is provisional. The number and proportion of jobs paid below the Living Wage has been published by ONS for 2015 onwards; figures for 2012-14 are estimated from published ONS tables by the Living Wage Foundation. See the methodology section for further details. Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. p. 9 THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME

Figure 3: Employee jobs paid below the Living Wage, by gender and hours in selected years: UK in April 2020. Bexley is followed by paid professional jobs, with the jobs All employees Torridge in the South West (41.2 located in the borough relatively 20.3% per cent), Wyre in the North West lower paid. (40.8 per cent), and Boston in the Men 16.6% East Midlands (40.4 per cent). These GENDER AND Women below-Living-Wage ‘hotspots’ are WORKING HOURS 23.8% spread across the country, including in regions and nations where the Table 2, Table 3, Table 4 and Table Full-time employees likelihood of jobs being paid below 14.0% 6 in the data tables section of this the Living Wage is below the UK Part-time employees report summarise the latest data and 35.9% average. trends over time in the number and proportion of jobs paid below the London stands out as having a Full-time male employees 12.7% Living Wage by gender and full-time/ high number of below-Living-Wage April 2012 part-time hours. These trends are Part-time male employees hotspot local authorities. This data 40.1% summarised in Figure 3. This shows refers to the jobs located in each that part-time jobs were much more April 2019 local authority (rather than the Full-time female employees likely to be paid below the Living 15.9% employees who live there). These Wage than full-time jobs in April 2020 Part-time female employees London below-Living-Wage hotspots 34.5% April 2020 (35.9 per cent of part-time jobs were, are mostly outer London boroughs, compared to 14.0 per cent of full-time where a high proportion of people jobs), and jobs held by women (23.8 who live there are likely to commute 0% 10% 20% 30% 40% 50% per cent) were more likely to be paid to central London areas for better- below the Living Wage than those Notes: Data for April 2020 is provisional. The number and proportion of jobs paid below the Living Wage has been published by ONS for 2015 onwards; figures for 2012-14 are estimated from published ONS tables by the Living Wage Foundation. See the methodology section for further details. Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. p. 10 THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME

held by men (16.6 per cent). Overall, Trends for these different groups Table 2, Table 3 and Table 4 in had more of a downwards effect on 51 per cent of below-Living-Wage have also been moving in different the data tables section of this below-Living-Wage rates in part-time jobs were part time in April 2020 (2.8 directions over time. Figure 3 shows report show the latest data on jobs outside of the capital. million jobs), and 60 per cent (3.3 that the proportion of jobs held by below-Living-Wage employee jobs million jobs) were held by women. women that pay below the Living disaggregated by gender, hours INDUSTRY Wage was lower in 2020 than it and region or nation. The overall Within part-time jobs, men were was in 2012, as was the proportion outcomes across regions and nations Table 8 in the data tables section more likely to be paid below the of part-time jobs. By contrast, discussed above are reflected in of this report summarises the latest Living Wage than women (40.1 per below-Living-Wage rates increased below-Living-Wage rates for jobs data on the number and proportion cent compared to 34.5 per cent in between 2012 and 2020 for jobs held by men and women separately. of jobs paid below the Living Wage 2020). But this is in the context of the held by men and for full-time jobs. However, London diverges when it by industry; for industries with majority (75 per cent) of all part-time In part, this is because part-time comes to hours: while jobs in London above-average rates of below- jobs being held by women, meaning jobs and jobs held by women are were slightly less likely to be paid Living-Wage pay, this is also that the number of part-time jobs lower paid on average, meaning below the Living Wage than jobs summarised in Figure 4. This shows paid below the Living Wage held by that the rising minimum wage across the UK as a whole in April that the hospitality (accommodation women (2.0 million in 2020) is over as a proportion of earnings (and 2020 (19.5 per cent and 20.3 per cent, and food services) sector had the 2.5 times higher than the number its ripple effects up the earnings respectively), London had the highest highest proportion of jobs paid below of part-time jobs paid below the distribution) has had a more proportion of part-time jobs paid the Living Wage in April this year Living Wage held by men (760,000). pronounced downward effect below the Living Wage of any region (70.8 per cent). However, the fact Well over a third (37 per cent) of all on below-Living-Wage rates or nation (45.6 per cent, compared that the wholesale and retail sector is employee jobs paid below the Living (alongside other initiatives to to 35.9 per cent across the UK). This much larger means that it accounted Wage in April 2020 were part-time tackle low pay, including the is a gap that has grown since 2012, for the largest number of below- jobs held by women. Living Wage campaign itself). as the rising minimum wage has Living-Wage jobs (1.3 million).

p. 11 Figure 4: Employee jobs paid below the Living Figure 5: Employee jobs paid below the Living Wage in industries with above-average below- Wage in occupations with above-average below- Living-Wage rates (one-digit SIC): April 2020, UK Living-Wage rates (two-digit SOC): April 2020, UK

Number of jobs below Proportion of jobs below Number of jobs below Proportion of jobs below Living Wage (left axis) Living Wage (right axis) Living Wage (left axis) Living Wage (right axis)

1,600k 80% 1,400k 70% 70.8% 61.1%

1,400k 70% 1,200k 56.1% 60%

50.4% 1,200k 60% 1,000k 47.4% 50% 44.2% 1,000k 50% 800k 40% 34.5% 34.4% 33.9% 33.8% 800k 36.8% 36.7% 40% 31.4% 33% 32.6% 27.9% 31.6% 600k 30% 600k 30% 400k 20% 400k 20%

200k 10% 200k 10%

0 0% 0k 0% Agriculture, Accomodation Arts, entertainment Wholesale Administrative and Other service Elementary Leisure, Textiles, Elementary Customer Skilled Secretarial Caring Process, Transport forestry and and food services and recreation and retail support services activities admin, Sales travel and printing and trades and service agricultural and related personal plant and and mobile fishing and service occupations related other skilled related occupations and related occupations service machine machine occupations personal trades occupations trades occupations operatives drivers and Notes: Data for April 2020 is provisional. See the methodology section for further details. service operatives Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. occupations

Notes: Data for April 2020 is provisional. See the methodology section for further details. Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. p. 12 THE INCIDENCE OF EMPLOYEE JOBS PAID BELOW THE LIVING WAGE AND TRENDS OVER TIME

The accommodation and food services sector (-2.9 percentage rates of below-Living-Wage pay occupations (1.3 million); sales services (+8.0 percentage points); points) and the wholesale and retail in Figure 5. This shows that the occupations (760,000); and caring construction (+4.9 percentage sector (-2.5 percentage points). highest rates of jobs paid below personal service occupations (e.g. points); manufacturing (+4.1 the Living Wage in April 2020 were childminders, teaching assistants, percentage points); and arts, Drilling down to a more specific in elementary administration and nursing auxiliaries and care workers entertainment and recreation industry definition, we find very high service occupations (e.g. postal – 710,000). (+3.2 percentage points) sectors proportions of jobs paid below the workers, cleaners, waiters and experienced large increases in the Living Wage in April 2020 in some waitresses, and bar staff – 61.1 per proportion of jobs paid below the industries e.g. 73.7 per cent in food cent); sales occupations (56.1 per Living Wage between 2019 and 2020. and beverage services, 59.9 per cent cent); leisure, travel and related ONS analysis suggests that this is in accommodation, 49.0 per cent in personal service occupations (e.g. partly because these are sectors in building services (e.g. cleaning and hairdressers, caretakers and travel which employees were particularly facilities management), and 44.9 per agents – 50.5 per cent); textiles and likely to be furloughed without cent in retail. printing occupations (e.g. tailors having their pay topped up by their and printers – 47.4 per cent); and employer in April this year.7 OCCUPATION elementary trades (e.g. forestry workers – 44.2 per cent). Among the sectors with above- Table 9 in the data tables section of average rates of below-Living-Wage this report summarises the latest The occupations that accounted for pay shown in Figure 4, the likelihood data on the number and proportion the largest number of employee of jobs being paid below the Living of jobs paid below the Living Wage jobs paid below the Living Wage Wage fell between 2012 and 2020 by occupation, which is also shown in April 2020 were elementary in the administrative and support for occupations with above-average administration and service

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DATA TABLES p. 14 Table 2: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region and gender: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 All employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 889 £12.31 £15.53 210 227 -17 22.5% 22.4% +0.1ppts North West 2,681 £12.90 £16.33 602 626 -24 21.4% 21.0% +0.4ppts Yorkshire and the Humber 2,064 £12.45 £15.70 493 487 +6 22.8% 21.9% +0.9ppts East Midlands 1,741 £12.60 £15.89 423 430 -7 23.1% 22.7% +0.4ppts 2West Midlands 2,117 £12.84 £16.30 486 486 0 21.9% 21.7% +0.2ppts East 2,331 £13.29 £16.75 478 470 +8 19.7% 18.8% +0.9ppts London 3,825 £18.34 £23.89 780 838 -58 19.5% 19.7% -0.2ppts South East 3,948 £14.37 £17.90 682 603 +79 16.6% 15.8% +0.8ppts South West 2,165 £12.66 £15.85 492 479 +13 21.8% 20.3% +1.5ppts Wales 1,125 £12.42 £15.22 265 268 -3 22.4% 22.5% -0.1ppts Scotland 2,184 £14.07 £17.18 350 398 -48 15.2% 16.8% -1.6ppts Northern Ireland 949 £11.98 £14.90 254 229 +25 25.3% 25.1% +0.2ppts

United Kingdom 26,019 £13.68 £17.57 5,515 5,540 -25 20.3% 20.0% +0.3ppts

Employee Median Mean April April 2019-2020 April April 2019-2020 Men Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 425 £13.41 £16.12 81 80 +1 18.3% 16.4% +1.9ppts North West 1,277 £13.98 £17.24 235 242 -7 17.7% 16.5% +1.2ppts Yorkshire and the Humber 1,037 £13.46 £16.50 203 181 +22 18.7% 16.2% +2.5ppts East Midlands 893 £14.00 £17.07 166 164 +2 17.8% 16.8% +1.0ppts West Midlands 1,070 £14.07 £17.43 203 190 +13 18.3% 16.7% +1.6ppts East 1,125 £14.37 £17.88 188 177 +11 16.0% 14.4% +1.6ppts

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p. 15 Table 2: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region and gender: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Men (cont.) Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

London 1,951 £20.29 £26.55 314 354 -40 15.5% 16.3% -0.8ppts South East 1,952 £16.00 £19.39 251 224 +27 12.4% 11.8% +0.6ppts South West 1,061 £13.78 £16.76 202 181 +21 18.3% 15.7% +2.6ppts Wales 521 £13.36 £15.78 104 99 +5 19.1% 17.3% +1.8ppts 2Scotland 972 £15.03 £18.14 140 154 -14 13.8% 13.9% -0.1ppts Northern Ireland 466 £12.35 £15.43 117 95 +22 23.9% 21.3% +2.6ppts

United Kingdom 12,749 £14.89 £18.84 2,206 2,140 +66 16.6% 15.6% +1.0ppts

Employee Median Mean April April 2019-2020 April April 2019-2020 Women Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 464 £11.18 £14.85 128 148 -20 26.3% 27.9% -1.6ppts North West 1,404 £12.06 £15.32 367 384 -17 24.8% 25.4% -0.6ppts Yorkshire and the Humber 1,027 £11.37 £14.68 291 305 -14 26.8% 27.5% -0.7ppts East Midlands 848 £11.24 £14.32 257 267 -10 28.7% 29.0% -0.3ppts West Midlands 1,047 £11.75 £14.87 282 296 -14 25.6% 26.8% -1.2ppts East 1,206 £12.29 £15.35 289 293 -4 23.1% 23.1% 0ppts London 1,874 £16.56 £20.77 466 483 -17 23.7% 23.3% +0.4ppts South East 1,996 £12.78 £16.08 431 378 +53 20.7% 19.7% +1.0ppts South West 1,103 £11.61 £14.72 290 297 -7 25.2% 24.6% +0.6ppts Wales 604 £11.74 £14.62 161 169 -8 25.3% 27.4% -2.1ppts Scotland 1,213 £13.32 £16.24 209 245 -36 16.4% 19.4% -3.0ppts Northern Ireland 483 £11.37 £14.27 137 133 +4 26.7% 28.8% -2.1ppts

United Kingdom 13,270 £12.51 £16.07 3,309 3,400 -91 23.8% 24.3% -0.5ppts

p. 16 Table 3: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region and hours: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 All employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 889 £12.31 £15.53 210 227 -17 22.5% 22.4% +0.1ppts North West 2,681 £12.90 £16.33 602 626 -24 21.4% 21.0% +0.4ppts Yorkshire and the Humber 2,064 £12.45 £15.70 493 487 +6 22.8% 21.9% +0.9ppts East Midlands 1,741 £12.60 £15.89 423 430 -7 23.1% 22.7% +0.4ppts 3West Midlands 2,117 £12.84 £16.30 486 486 0 21.9% 21.7% +0.2ppts East 2,331 £13.29 £16.75 478 470 +8 19.7% 18.8% +0.9ppts London 3,825 £18.34 £23.89 780 838 -58 19.5% 19.7% -0.2ppts South East 3,948 £14.37 £17.90 682 603 +79 16.6% 15.8% +0.8ppts South West 2,165 £12.66 £15.85 492 479 +13 21.8% 20.3% +1.5ppts Wales 1,125 £12.42 £15.22 265 268 -3 22.4% 22.5% -0.1ppts Scotland 2,184 £14.07 £17.18 350 398 -48 15.2% 16.8% -1.6ppts Northern Ireland 949 £11.98 £14.90 254 229 +25 25.3% 25.1% +0.2ppts

United Kingdom 26,019 £13.68 £17.57 5,515 5,540 -25 20.3% 20.0% +0.3ppts

Employee Median Mean April April 2019-2020 April April 2019-2020 Full-time employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 618 £13.64 £15.97 105 102 +3 16.0% 14.1% +1.9ppts North West 1,894 £14.45 £16.91 294 295 -1 14.7% 13.7% +1.0ppts Yorkshire and the Humber 1,441 £13.72 £16.21 236 220 +16 15.5% 14.0% +1.5ppts East Midlands 1,234 £13.82 £16.38 220 216 +4 16.8% 15.9% +0.9ppts West Midlands 1,503 £14.15 £16.79 257 235 +22 16.2% 14.6% +1.6ppts East 1,566 £14.42 £17.29 228 211 +17 13.8% 12.1% +1.7ppts

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p. 17 Table 3: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region and hours: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Full-time employees (cont.) Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

London 2,978 £20.17 £24.89 383 422 -39 12.3% 12.6% -0.3ppts South East 2,795 £15.67 £18.54 341 266 +75 11.6% 9.7% +1.9ppts South West 1,429 £13.96 £16.31 237 207 +30 15.7% 13.0% +2.7ppts Wales 788 £13.77 £15.65 131 118 +13 15.7% 14.2% +1.5ppts 3Scotland 1,532 £15.62 £17.87 166 177 -11 10.2% 10.6% -0.4ppts Northern Ireland 665 £13.11 £15.53 132 115 +17 18.7% 18.1% +0.6ppts

United Kingdom 18,441 £15.14 £18.25 2,728 2,582 +146 14.0% 12.9% +1.1ppts

Employee Median Mean April April 2019-2020 April April 2019-2020 Part-time employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 271 £9.99 £13.39 105 126 -21 37.8% 42.6% -4.8ppts North West 787 £10.00 £13.35 309 331 -22 38.1% 40.1% -2.0ppts Yorkshire and the Humber 623 £9.92 £13.15 257 267 -10 40.1% 40.7% -0.6ppts East Midlands 506 £9.99 £13.34 203 214 -11 38.8% 40.1% -1.3ppts West Midlands 614 £10.10 £13.67 229 251 -22 36.7% 39.8% -3.1ppts East 765 £10.57 £14.13 249 260 -11 32.1% 34.1% -2.0ppts London 848 £11.42 £16.26 397 416 -19 45.6% 46.6% -1.0ppts South East 1,153 £10.83 £14.42 342 337 +5 29.1% 31.4% -2.3ppts South West 736 £10.42 £13.83 255 272 -17 34.3% 35.2% -0.9ppts Wales 337 £10.00 £13.18 134 150 -16 38.6% 42.3% -3.7ppts Scotland 653 £10.82 £13.83 184 221 -37 27.1% 31.9% -4.8ppts Northern Ireland 284 £9.82 £11.91 122 113 +9 40.9% 41.6% -0.7ppts

United Kingdom 7,577 £10.39 £13.93 2,786 2,958 -172 35.9% 38.1% -2.2ppts

p. 18 Table 4: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region, gender and hours: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Full-time male employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 364 £13.82 £16.22 57 47 +10 14.8% 11.3% +3.5ppts North West 1,080 £14.84 £17.49 156 152 +4 13.7% 12.1% +1.6ppts Yorkshire and the Humber 873 £14.19 £16.76 130 112 +18 14.2% 11.7% +2.5ppts East Midlands 767 £14.52 £17.19 116 108 +8 14.3% 12.7% +1.6ppts 4West Midlands 913 £14.65 £17.59 144 124 +20 14.9% 12.6% +2.3ppts East 947 £14.90 £18.14 123 107 +16 12.4% 10.2% +2.2ppts London 1,687 £21.72 £27.25 184 212 -28 10.4% 11.2% -0.8ppts South East 1,669 £16.63 £19.64 168 128 +40 9.6% 7.8% +1.8ppts South West 875 £14.39 £16.89 131 106 +25 14.2% 11.0% +3.2ppts Wales 447 £14.04 £15.90 73 61 +12 15.4% 12.6% +2.8ppts Scotland 828 £15.84 £18.49 86 91 -5 9.8% 9.7% +0.1ppts Northern Ireland 390 £12.95 £15.72 79 65 +14 19.1% 17.0% +2.1ppts

United Kingdom 10,838 £15.60 £19.14 1,446 1,313 +133 12.7% 11.1% +1.6ppts

Employee Median Mean April April 2019-2020 April April 2019-2020 Part-time male employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 61 £9.90 £14.71 24 32 -8 40.3% 48.4% -8.1ppts North West 198 £9.96 £14.06 80 90 -10 40.9% 42.7% -1.8ppts Yorkshire and the Humber 164 £9.79 £13.33 73 69 +4 44.3% 44.0% +0.3ppts East Midlands 126 £10.00 £15.38 50 56 -6 40.1% 43.1% -3.0ppts West Midlands 157 £10.00 £15.12 60 66 -6 39.8% 42.0% -2.2ppts East 178 £10.21 £14.52 65 70 -5 36.9% 39.2% -2.3ppts

Continues > > > > > > > > > >

p. 19 Table 4: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region, gender and hours: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Part-time male employees (cont.) Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

London 265 £11.00 £16.32 131 143 -12 49.0% 51.5% -2.5ppts South East 284 £11.11 £15.72 83 96 -13 29.6% 36.5% -6.9ppts South West 186 £10.00 £15.21 71 75 -4 39.1% 39.7% -0.6ppts Wales 74 £9.91 £14.24 31 38 -7 42.2% 44.3% -2.1ppts 4Scotland 143 £10.03 £13.57 54 62 -8 37.4% 39.3% -1.9ppts Northern Ireland 76 £9.63 £12.29 38 31 +7 48.8% 45.3% +3.5ppts

United Kingdom 1,912 £10.16 £14.78 760 827 -67 40.1% 42.7% -2.6ppts

Employee Median Mean April April 2019-2020 April April 2019-2020 Full-time female employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 255 £13.04 £15.60 48 54 -6 17.6% 18.0% -0.4ppts North West 815 £14.01 £16.10 138 143 -5 16.0% 15.9% +0.1ppts Yorkshire and the Humber 568 £13.14 £15.31 106 108 -2 17.5% 17.6% -0.1ppts East Midlands 467 £12.80 £14.96 104 108 -4 20.9% 21.0% -0.1ppts West Midlands 590 £13.36 £15.48 113 111 +2 18.1% 17.6% +0.5ppts East 618 £13.70 £15.91 105 104 +1 16.0% 15.1% +0.9ppts London 1,291 £18.62 £21.73 199 210 -11 14.6% 14.4% +0.2ppts South East 1,127 £14.38 £16.83 173 137 +36 14.5% 12.4% +2.1ppts South West 554 £13.23 £15.34 105 100 +5 18.0% 16.0% +2.0ppts Wales 341 £13.42 £15.30 58 57 +1 16.0% 16.4% -0.4ppts Scotland 703 £15.31 £17.11 80 86 -6 10.7% 11.8% -1.1ppts Northern Ireland 276 £13.32 £15.24 53 51 +2 18.1% 19.6% -1.5ppts

United Kingdom 7,604 £14.37 £16.93 1,283 1,269 +14 15.9% 15.5% +0.4ppts

Continues > > > > > > > > > > p. 20 Table 4: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by region, gender and hours: April 2020 (unless otherwise stated)

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Part-time female employees Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

North East 210 £10.00 £13.03 81 93 -12 37.1% 40.9% -3.8ppts North West 590 £10.00 £13.13 229 242 -13 37.3% 39.2% -1.9ppts Yorkshire and the Humber 459 £9.93 £13.10 184 198 -14 38.6% 39.6% -1.0ppts East Midlands 381 £9.97 £12.73 153 158 -5 38.4% 39.1% -0.7ppts 4West Midlands 457 £10.12 £13.22 169 185 -16 35.7% 39.1% -3.4ppts East 588 £10.69 £14.01 184 190 -6 30.7% 32.6% -1.9ppts London 583 £11.61 £16.23 267 273 -6 44.1% 44.4% -0.3ppts South East 869 £10.78 £14.04 259 241 +18 29.0% 29.8% -0.8ppts South West 550 £10.54 £13.39 184 197 -13 32.7% 33.8% -1.1ppts Wales 263 £10.08 £12.90 103 112 -9 37.6% 41.7% -4.1ppts Scotland 509 £11.09 £13.90 130 159 -29 24.3% 29.7% -5.4ppts Northern Ireland 208 £9.89 £11.78 84 83 +1 38.1% 40.4% -2.3ppts

United Kingdom 5,666 £10.46 £13.67 2,027 2,131 -104 34.5% 36.6% -2.1ppts

p. 21 Table 5: Notes: Data for April 2020 is provisional. The number and proportion of jobs paid below the Living Wage has been published by ONS for 2015 onwards; figures for 2012-14 are estimated from published Employee jobs paid below the ONS tables by the Living Wage Foundation. See the methodology section for further details. Living Wage over time, by region Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings.

Number of employee jobs paid April April April April April April April April April below the Living Wage (000s) 2012 2013 2014 2015 2016 2017 2018 2019 2020 North East 202 233 228 252 255 249 263 227 210 North West 545 595 652 717 710 689 715 626 602 Yorkshire and the Humber 438 468 506 544 563 546 564 487 493 East Midlands 378 408 443 507 511 468 509 430 423 West Midlands 456 480 549 583 580 570 573 486 486 East 444 457 522 566 574 528 549 470 478 London 572 636 727 798 802 814 871 838 780 South East 515 576 621 667 686 695 712 603 682 5South West 435 460 491 543 532 501 532 479 492 Wales 245 253 277 300 286 289 305 268 265 Scotland 390 404 422 460 468 433 473 398 350 Northern Ireland 183 183 205 226 258 240 232 229 254

United Kingdom 4,805 5,151 5,644 6,162 6,224 6,023 6,297 5,540 5,515

Proportion of employee jobs April April April April April April April April April paid below the Living Wage 2012 2013 2014 2015 2016 2017 2018 2019 2020 North East 21.8% 24.6% 23.7% 24.5% 25.5% 24.3% 25.2% 22.4% 22.5% North West 21.2% 23.0% 24.7% 24.8% 25.2% 23.9% 24.3% 21.0% 21.4% Yorkshire and the Humber 22.3% 23.8% 25.6% 25.3% 26.5% 25.3% 25.7% 21.9% 22.8% East Midlands 22.7% 24.1% 26.0% 26.9% 27.7% 25.7% 27.0% 22.7% 23.1% West Midlands 21.7% 22.9% 25.4% 25.1% 25.8% 25.2% 24.8% 21.7% 21.9% East 20.2% 20.5% 22.9% 22.7% 23.8% 22.0% 22.7% 18.8% 19.7% London 16.2% 17.2% 19.2% 20.0% 19.5% 19.4% 20.5% 19.7% 19.5% South East 15.9% 17.1% 18.3% 18.4% 18.7% 18.2% 18.8% 15.8% 16.6% South West 21.2% 22.4% 23.4% 23.9% 23.8% 22.3% 23.4% 20.3% 21.8% Wales 23.1% 23.6% 25.0% 25.3% 25.1% 24.9% 26.1% 22.5% 22.4% Scotland 18.3% 18.6% 19.2% 19.6% 20.1% 18.4% 19.4% 16.8% 15.2% Northern Ireland 24.4% 25.8% 28.3% 27.3% 29.6% 27.9% 28.0% 25.1% 25.3%

United Kingdom 19.9% 21.0% 22.5% 22.8% 23.2% 22.2% 22.9% 20.0% 20.3% p. 22 Table 6: Notes: Data for April 2020 is provisional. The number and proportion of jobs paid below the Living Wage has been published by ONS for 2015 onwards. Figures for 2012-14 are estimated from published Employee jobs paid below the Living Wage ONS tables by the Living Wage Foundation – sub-groups do not exactly sum to ‘all employee’ totals due to the estimation method used. See the methodology section for further details. over time, by gender and hours: UK Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings.

Number of employee jobs paid April April April April April April April April April below the Living Wage (000s) 2012 2013 2014 2015 2016 2017 2018 2019 2020 All employees 4,805 5,151 5,644 6,162 6,224 6,023 6,297 5,540 5,515 Men 1,852 1,958 2,184 2,367 2,430 2,341 2,474 2,140 2,206 Women 2,961 3,181 3,426 3,795 3,795 3,682 3,823 3,400 3,309 Full-time employees 2,028 2,240 2,570 2,805 2,939 2,807 2,923 2,582 2,728 6Part-time employees 2,809 2,928 3,096 3,357 3,285 3,216 3,374 2,958 2,786 Full-time male employees 1,064 1,164 1,346 1,445 1,534 1,452 1,528 1,313 1,446 Part-time male employees 787 809 876 921 895 889 946 827 760 Full-time female employees 946 1,067 1,205 1,359 1,405 1,355 1,395 1,269 1,283 Part-time female employees 2,017 2,121 2,220 2,436 2,389 2,327 2,428 2,131 2,027

Proportion of employee jobs April April April April April April April April April paid below the Living Wage 2012 2013 2014 2015 2016 2017 2018 2019 2020

All employees 19.9% 21.0% 22.5% 22.8% 23.2% 22.2% 22.9% 20.0% 20.3% Men 15.1% 15.9% 17.3% 17.6% 18.1% 17.2% 17.9% 15.6% 16.6% Women 24.8% 26.0% 27.6% 28.1% 28.3% 27.1% 27.9% 24.3% 23.8% Full-time employees 11.7% 12.7% 14.4% 14.4% 15.2% 14.3% 14.7% 12.9% 14.0% Part-time employees 40.8% 41.9% 43.2% 44.4% 44.4% 42.8% 43.8% 38.1% 35.9% Full-time male employees 10.1% 10.9% 12.4% 12.4% 13.2% 12.3% 12.9% 11.1% 12.7% Part-time male employees 46.0% 47.6% 48.4% 50.1% 49.9% 48.4% 48.3% 42.7% 40.1% Full-time female employees 14.0% 15.4% 17.1% 17.4% 18.1% 17.2% 17.5% 15.5% 15.9% Part-time female employees 39.0% 40.1% 41.5% 42.6% 42.6% 41.0% 42.2% 36.6% 34.5%

p. 23 Table 7: Notes: Data for April 2020 is provisional. No local authority (or equivalent) data is available for Northern Ireland. Data refers to jobs in workplaces located in the local authority, not employees Employee jobs paid below the Living Wage in who live in the local authority. See the methodology section for further details. the top 25 below-Living-Wage local authorities: Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. April 2020 (unless otherwise stated) Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Local authority Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

Bexley (London) 59 £11.43 £15.45 27 22 +5 43.8% 33.7% +10.1ppts Torridge (South West) 17 £10.51 £14.58 7 5 +2 41.2% 30.2% +11.0ppts Wyre (North West) 23 £9.90 £14.27 9 8 +1 40.8% 30.5% +10.3ppts Boston (East Midlands) 27 £10.36 £12.49 12 10 +2 40.4% 37.1% +3.3ppts Barking and Dagenham (London) 30 £12.65 £15.93 12 15 -3 39.1% 34.8% +4.3ppts 7Redbridge (London) 53 £12.60 £16.62 21 17 +4 38.8% 35.8% +3.0ppts Harrow (London) 40 £12.54 £17.24 16 15 +1 37.4% 31.7% +5.7ppts Ryedale (Yorkshire and the Humber) 24 £10.37 £12.48 9 7 +2 36.3% 28.3% +8.0ppts Rother (South East) 30 £10.37 £12.69 11 7 +4 36.1% 28.4% +7.7ppts West Devon (South West) 12 £10.15 £12.57 4 5 -1 36.0% 35.3% +0.7ppts Newark and Sherwood (East Midlands) 41 £10.23 £14.09 15 15 - 35.6% 37.7% -2.1ppts Enfield (London) 69 £12.88 £17.25 26 31 -5 35.2% 40.4% -5.2ppts Melton (East Midlands) 14 £10.48 £12.93 5 6 -1 34.5% 32.3% +2.2ppts Waltham Forest (London) 41 £14.06 £16.82 15 16 -1 34.5% 31.7% +2.8ppts Maldon (East) 15 £10.55 £14.72 5 4 +1 33.8% 25.6% +8.2ppts Pendle (North West) 26 £10.04 £12.78 9 7 +2 33.7% 25.1% +8.6ppts Blackpool (North West) 46 £10.73 £13.84 16 18 -2 33.5% 30.8% +2.7ppts Nuneaton and Bedworth (West Midlands) 30 £10.87 £14.29 10 9 +1 33.5% 22.7% +10.8ppts Barnet (London) 95 £13.97 £18.68 33 27 +6 33.3% 32.3% +1.0ppts Merton (London) 55 £13.46 £17.75 19 21 -2 33.2% 32.5% +0.7ppts Mid Devon (South West) 28 £10.65 £12.72 10 9 +1 33.1% 36.2% -3.1ppts Forest of Dean (South West) 19 £10.06 £12.49 7 5 +2 33.1% 22.7% +10.4ppts Sutton (London) 53 £14.94 £18.10 18 17 +1 33.0% 34.5% -1.5ppts Teignbridge (South West) 36 £10.77 £13.02 12 14 -2 33.0% 32.6% +0.4ppts Bromley (London) 83 £14.00 £17.23 28 25 +3 32.9% 27.2% +5.7ppts

United Kingdom 26,019 £13.68 £17.57 5,515 5,540 -25 20.3% 20.0% +0.3ppts

p. 24 Table 8: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by industry (one-digit SIC): April 2020 (unless otherwise stated), UK

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

Agriculture, forestry and fishing 179 £10.50 £12.31 57 45 +11 31.6% 32.0% -0.4ppts Mining and quarrying 36 £19.78 £23.88 - - - - <10% - Manufacturing 2,528 £14.22 £16.76 412 299 +113 16.3% 12.2% +4.1ppts Electricity and gas 149 £20.16 £22.70 - - - <10% <10% - 8Water supply and sewerage 179 £14.61 £16.95 20 - - 10.9% <10% - Construction 974 £14.37 £17.26 149 104 +44 15.3% 10.3% +4.9ppts Wholesale and retail 3,662 £10.30 £14.05 1,345 1,331 +14 36.7% 35.3% +1.4ppts Transportation and storage 887 £13.68 £16.86 125 - - 14.1% <10% - Accommodation and food services 1,077 £8.72 £10.53 762 959 -197 70.8% 62.8% +8.0ppts Information and communication 1,036 £20.44 £24.17 - - - <10% <10% - Financial and insurance activities 1,019 £20.59 £28.52 - - - <10% <10% - Real estate activities 387 £14.12 £17.61 55 48 +6 14.1% 12.1% +2.0ppts Professional, scientific and technical 1,895 £17.25 £21.93 - - - <10% <10% - Administrative and support services 1,430 £11.20 £14.57 472 561 -89 33.0% 32.9% +0.1ppts Public administration and defence 1,401 £16.13 £17.81 - - - <10% <10% - Education 3,958 £15.80 £18.63 448 424 +23 11.3% 11.3% +0.0ppts Human health and social work 4,120 £13.73 £16.63 689 728 -39 16.7% 18.1% -1.4ppts Arts, entertainment and recreation 519 £11.16 £16.17 191 191 - 36.8% 33.6% +3.2ppts Other service activities 490 £11.93 £14.93 160 136 +24 32.6% 29.0% +3.6ppts

All industries 26,019 £13.68 £17.57 5,515 5,540 -25 20.3% 20.0% +0.3ppts

p. 25 Table 9: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by occupation (two-digit SOC): April 2020 (unless otherwise stated), UK

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

Corporate managers and directors 2,456 £22.73 £28.56 - - - <10% <10% - Other managers and proprietors 462 £14.86 £17.58 53 - - 11.5% <10% - (e.g. of bars and service venues) Science, research, engineering 1,411 £21.34 £22.83 - - - <10% <10% - 9and technology professionals Health professionals £22.37 - - <10% - (e.g. doctors and nurses) 1,647 £19.61 - <10% Teaching and educational professionals £23.61 £24.50 - - <10% - (e.g. teachers and lecturers) 1,591 - <10% Business, media and public service 1,539 £23.62 - - <10% - professionals (e.g. lawyers, journalists) £20.87 - <10% Science and technology associate £15.63 77 - <10% - professionals (e.g. IT technicians) 768 £14.23 - 10.1% Health and social care associate professionals 445 £13.21 £14.34 - - - <10% <10% - (e.g. paramedics, youth workers) Protective service occupations 340 £19.23 £18.49 - - - <10% - (e.g. police and prison officers) <10% Culture, media and sports occupations 281 £13.29 £17.39 54 31 +23 19.2% 11.9% +7.4ppts (e.g. designers, fitness instructors)

Business and public service associate 2,282 £16.58 £19.85 - - - <10% <10% - professionals (e.g. paralegals, brokers)

Administrative occupations 2,303 £11.97 £13.75 383 368 +15 16.6% 15.2% +1.5ppts (e.g. bank clerks, office managers) Secretarial and related occupations 561 £10.37 £11.99 190 177 +13 33.9% 29.4% +4.5ppts > Continues > > > > > > > > >

p. 26 Table 9: Notes: Data for April 2020 is provisional. See the methodology section for further details. Employee jobs paid below the Living Source: Living Wage Foundation analysis of ONS, Annual Survey of Hours and Earnings. Wage, by occupation (two-digit SOC): April 2020 (unless otherwise stated), UK

Number of employee jobs Proportion of employee below Living Wage (000s) jobs below Living Wage

Employee Median Mean April April 2019-2020 April April 2019-2020 Jobs (000s) Wage Wage 2020 2019 change 2020 2019 change

Skilled agricultural and £10.45 related trades (e.g. farmers) 103 £10.87 35 35 - 34.4% 34.3% +0.1ppts Skilled metal, electrical and £13.89 electronic trades (e.g. electricians) 935 £14.63 136 - - 14.5% <10% - 9Skilled construction and building trades £12.67 (e.g. builders, decorators) 287 £13.14 55 32 +23 19.2% 10.6% +8.6ppts Textiles, printing and other £9.72 skilled trades (e.g. tailors) 434 £10.68 206 193 +12 47.4% 37.8% +9.6ppts Caring personal service occupations £10.13 (e.g. childminders, care workers) 2,100 £10.86 710 745 -35 33.8% 35.5% -1.7ppts Leisure, travel and related personal service occupations 366 £9.62 £10.78 185 180 +5 50.5% 42.6% +7.9ppts (e.g. hairdressers, caretakers) Sales occupations (e.g. retail assistants) 1,361 £9.30 £10.29 764 862 -98 56.1% 59.3% -3.2ppts Customer service occupations (e.g. call centre workers) 534 £10.39 £12.16 184 178 +6 34.5% 31.7% +2.7ppts Process, plant and machine operatives (e.g. factory workers) 665 £10.78 £11.96 209 182 +27 31.4% 25.8% +5.6ppts Transport and mobile machine drivers and operatives 690 £11.00 £12.52 193 169 +24 27.9% 21.3% +6.6ppts (e.g. bus, train and delivery drivers) Elementary trades and related occupations (e.g. forestry workers) 328 £9.74 £10.56 145 147 -2 44.2% 41.6% +2.6ppts Elementary administration and service occupations 2,129 £9.17 £10.13 1,300 1,510 -210 61.1% 58.7% +2.4ppts (e.g. bar and waiting staff, cleaners)

All industries 26,019 £13.68 £17.57 5,515 5,540 -25 20.3% 20.0% +0.3ppts p. 27 6

METHODOLOGY p. 28 METHODOLOGY

The analysis in this report is based The following definitions apply to the workplaces located in that area, below the Living Wage by region and on the Annual Survey of Hours an analysis throughout this report: not the employees who live in that nation, local authority/metropolitan Earnings (ASHE) conducted by the area. This approach is necessary county, parliamentary constituency, Office for National Statistics (ONS).8 • Data is available up to April 2020; for accurately identifying the jobs and disaggregated by gender and Carried out in April each year, ASHE however, estimates for 2020 are subject to the London and UK full-time/part-time hours. In these is the most comprehensive source provisional and will be subject to Living Wages. instances, we present the published of information on the structure and small revisions next year. ONS statistics. distribution of earnings and hours • Full-time jobs refer to jobs in which worked among employees in the • Following the ONS convention, we employees work more than 30 paid For estimates relating to industries UK. ASHE is based on a 1 per cent focus on gross hourly pay for all hours per week (or 25 or more for and occupations in all years, and for sample of employee jobs taken from employees whose pay was not the teaching ). all estimates prior to 2015, the ONS HM Revenue & Customs (HMRC) affected by absence (with a slightly does not publish data on jobs below Pay As You Earn (PAYE) records. tweaked definition for 2020 due • Data for industries and occupations the Living Wage. In these instances, Consequently, individuals with more to the coronavirus pandemic and is classified according to the we estimate the proportion of jobs than one job may appear in the furlough scheme – see below). Standard Industrial Classification paid below the Living Wage using sample more than once. Information (SIC) 20079 and the Standard other data tables which detail the on earnings and paid hours worked • We use a workplace-based (as Occupational Classification (SOC) percentile distribution of earnings is obtained from employers and opposed to residence-based) 201010 coding frames. (the 10th, 20th, 25th, 30th, 40th, 50th treated confidentially. ASHE does definition for regional and other (median), 60th, 70th, 75th, 80th and not cover the self-employed or geographical figures. That is, Since 2015, the ONS has published 90th percentiles are published). For employees not paid during the data for each geographical area data tables detailing the number each region and nation of the UK reference period. relates to the employee jobs at and proportion of UK jobs paid separately, we identify the percentile

p. 29 METHODOLOGY

band within which the applicable vary slightly across categories, estimates of employee jobs paid hours grouping. For industries and Living Wage rate (London or UK) due to the nature of the estimation below the Living Wage for 2015 occupations, we use the overall scale falls. We then interpolate the exact method used). Data disaggregated onwards, this linear interpolation factor estimated for each region or proportion of jobs that fall below by industry and occupation is not estimation approach produces very nation in that year. this threshold, assuming that the available for Northern Ireland, so similar (but consistently slightly distribution of earnings follows a in these instances we estimate the lower) results. To ensure that Finally, we note that data for April linear trend between percentile proportion of jobs paid below the our results are consistent across 2020 is more challenging to interpret, points. We apply this proportion to Living Wage across Great Britain, different disaggregations and over because it covers a period in which the total number of jobs in each and then apply this proportion to time, we adjust the estimates from economic activity was severely category to estimate the number the number of jobs in each category our linear interpolations using ‘scale constrained by the initial coronavirus of employee jobs paid below the across the UK to derive a UK- factors’ based on the proportional lockdown, and the Coronavirus Living Wage. This method does not wide estimate for the number of difference between estimated and Job Retention Scheme (or furlough allow us to estimate the number or employee jobs paid below the Living published results. This is seen as an scheme) – via which the government proportion of jobs paid below the Wage. appropriate approach because these paid up to 80 per cent of the wages Living Wage in categories where the scale factors are relatively consistent of employees without work to do – proportion is below 10 per cent. This ‘linear interpolation’ approach from year to year, and scale factors was in widespread use. This means follows that taken by KPMG and IHS across region and nations (and other that the ASHE sample was somewhat We then sum results for each region Markit in previous reports on the geographies) in adjacent years smaller in April 2020 than it usually and nation to derive UK-wide figures proportion of employee jobs paid are positively correlated. For years is, in part due to lower response (the implied total number of jobs below the Living Wage.11 prior to 2015, we use the 2015 scale rates. While a smaller sample and paid below the Living Wage, when factors specific to each geography lower response rates reduce the summed across sub-groups, can Compared to the published and gender and full-time/part-time accuracy of estimates made using

p. 30 METHODOLOGY

the survey, the ONS is confident furloughed. As in normal years, this it has produced robust data for excludes approximately 5 per cent of interpretation.12 employees.13

In response to the particularities The data therefore includes of the furlough scheme, the ONS’s furloughed employees. Because data tables are based on some furloughed employees, by definition, slightly different definitions in 2020. worked no hours in April 2020, their Usually the ONS excludes employees hourly pay was derived based on the whose pay was reduced by absence, number of hours used to calculate for example because they were their furlough claim (usually, hours on holiday or off sick. However, worked in their last pay period prior excluding furloughed employees to 19 March 2020). whose pay wasn’t topped up by their employers would produce a rosy picture of overall pay growth, because furloughed employees were much more likely to be in lower- paid occupations. Therefore, for 2020 only the ONS’s data tables exclude only those employees who had a loss of pay and were not

p. 31 REFERENCES

1. For example, see: IHS Markit (2019), Living Wage 7. Office for National Statistics (2020), Employee Research for KPMG: 2019 Report. earnings in the UK: 2020.

2. For details on the methodology, see: N Cominetti 8. See: Office for National Statistics (2020), Employee (2019), Calculating a Living Wage for London and the earnings in the UK: 2020. rest of the UK: 2019-20, Resolution Foundation. 9. See: Office for National Statistics (2016), UK SIC 2007. 3. Hourly pay for furloughed workers was derived based on the number of hours used to calculate their 10. See: Office for National Statistics (2016), SOC 2010. furlough claim (usually, hours worked in their last pay period prior to 19 March 2020). 11. For example, see: IHS Markit (2019), Living Wage Research for KPMG: 2019 Report. 4. For details on both these effects, see: L Gardiner & H Slaughter (2020), The effects of the coronavirus 12. Office for National Statistics (2020), Employee crisis on workers: Flash findings from the Resolution earnings in the UK: 2020. Foundation’s coronavirus survey, Resolution Foundation. 13. Office for National Statistics (2020), Employee earnings in the UK: 2020. 5. Office for National Statistics (2020), Low and high  pay in the UK: 2020.

6. This is partly because London’s higher Living Wage rate (and higher average earnings) mean that the rising minimum wage as a proportion of earnings as a result of the introduction of and increases to the ‘National Living Wage’ (and the ripple effects up the earnings distribution), has less of a downward effect on the proportion of employee jobs paid below the Living Wage in London than elsewhere.

p. 32 Livingwage.org.uk L@LivingWageUK