Useful Resource: Low Pay Britain 2019: Resolution Foundation Report

The Resolution Foundation has released their 9th annual report on low pay in the UK labour market. This year’s report focuses on minimum wage, as recent increases in wage levels and the introduction of the National Living Wage have seen low pay falling for the first time in forty years.

Key findings:
– Percentage of employees in low pay was 17.1% in 2018 compared to 20.7% in 2015.
– 60% of low pay employees are women
– Largest fall in low pay was among 20 – 30 year olds
– By sector, administrative and retail saw the largest fall in low pay
– The proportion of people earning below the ‘Real Living Wage’ in 2018 was 24%, only slightly below the 2015 figure of 24.1%.
– 7.3% of employees were paid at or below the minimum wage in 2018, an increase of 1.7% since 2015, largely due to the introduction of the National Living Wage in 2016
– Increases to minimum wage do not appear to have had any negative effect on employment such as job losses, nor are they a reason for a fall in hours for employees.

With uprating in minimum wage due to finish next year, the report also looks forward to what policy makers should be considering next to ensure the continued success of minimum wage while managing any potential negative effects on the labour market.

Download the full report here:

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