London's Poverty Profile has been created by one of London's largest charitable funders, Trust for London, and the independent think tank, New Policy Institute.
Low paid jobs over time
- The overall low pay rate in London increased to 18% in 2014.
- This is almost double the proportion that was low-paid in 2005.
- In 2014, 43% of part-time jobs were paid below the London Living Wage, an increase of nearly 5 percentage points from the previous year.
Low paid jobs over time
What does this graph show?
The graph shows the proportion of full-time, part-time and all jobs that are paid below the London Living Wage over time. The overall low pay rate in London increased to 18% in 2014. This is an increase of nearly 2 percentage points on 2013, and the increase was driven almost entirely by the number of low-paid part-time jobs. Overall, nearly one-in-five jobs in London were low-paid in 2014. This is almost double the proportion that was low-paid in 2005.
In 2014, 43% of part-time jobs were paid below the London Living Wage, an increase of nearly 5 percentage points from the previous year. The proportion of full-time jobs that are low-paid increased by 0.6 percentage points to just over 11%. In 2014, 78% of jobs in London were full-time positions. This proportion is unchanged compared to 2005.
In the longer term, the proportion of part-time jobs that were low-paid increased from around 30% in 2005 to over 40% in 2014. For full-time jobs the increasing rate of low pay has been a more recent trend. The low pay rate for these jobs was flat at around 6% or 7% until 2010, when the proportion increased sharply. This coincides with the time period in which real earnings started to fall in London. To give some idea of this, the London Living Wage rate increased by 16% over this period while the median full-time London hourly wage rate fell 8%. This reflects, among other things, the increasing cost of living in London which is included in the London Living Wage calculation, and falling real wages over this period.
The number of low-paid jobs in London has increased for the fifth consecutive year and stands at just under 700,000 in 2014. This is almost double the number of low-paid jobs in 2005 and 2006. It also represents an 80,000 increase in the number of jobs classified as low-paid since 2013, or a 13% rise, meanwhile the total number of jobs in London increased by 3% over the same period.
Annual Survey of Hours and Earnings, ONS.
Indicator last updated: 21 October 2015
Low pay indicators
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