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Low paid employees by age

Key points

  • The low pay rate for 16-20 year olds at 77% is almost double that of 21-24 year olds at 41%, which in turn is almost double that of 25-34 year olds at 21%.
  • The low pay rate for 16-20 year olds is down on 2010, while for 21-24 year olds it is unchanged.
  • Older age groups have seen increases in low pay rates of around four to five percentage points.

Low paid employees by age

What does this graph show?

This graph shows the proportion of employees of each age group that are paid below the London Living Wage.

The first thing to note is that the low pay rate for 16-20 year olds at 77% is almost double that of 21-24 year olds at 41%, which in turn is almost double that of 25-34 year olds at 21%. The low pay rate increases for those aged 55 and over is 25%.
The low pay rate for 16-20 year olds is down on 2010, though remains very high. For 21-24 year olds it is unchanged, whereas older age groups have seen increases of around four to five percentage points.

The high levels of low pay among young adults are in part a reflection of the lower statutory minimum wage among those aged under 21 (as of October 2015 it was £3.87/hour for under 18s and £5.30/hour for 18-20s). Further to this, the "national living wage" announced in the summer 2015 budget will only apply to those aged 25 and over.

Data used

Labour Force Survey, ONS.

Indicator last updated: 21 October 2015