Low paid workers at high risk of long term joblessness

Low paid workers such as cleaners, catering assistants and machine operators are the most  likely to be on the dole for...
Bookmark and Share

Low paid workers such as cleaners, catering assistants and machine operators are the most  likely to be on the dole for more than six months if they become unemployed, according to new analysis by the TUC.

Their research shows that as unemployment rises and the number of job vacancies fall, a growing proportion of unemployed people are staying on the dole for over six months, and this is affecting low-paid workers more than others.

The number of dole claimants out of work for over six months has increased by around a third since the start of the recession, rising from 29 per cent in April 2008 to 40 per cent in October 2011. Currently around one in six dole claimants have now been out of work for over a year.

Commenting on the new analysis, TUC general secretary Brendan Barber said: “While the majority of unemployed people are still able to come off the dole within six months, an increasing number of previously low paid workers are getting stuck on the dole for at least six months and sometimes for over a year.”

The risk of becoming long-term unemployed has increased most for machine operators, with the number of long-term dole claimants rising from 29 per cent before the recession to 45 per cent in October this year. People from elementary occupations – which include jobs like cleaners, catering assistants and security guards – have had the second sharpest increase, with 46 per cent of them now having been on the dole for at least six months.

Dole claimants from professional occupations have seen barely any change in the length of time they are spending out of work, with the proportion of those on the dole who have been unemployed over six months falling slightly since the recession to 29 per cent.

Before the recession the risk of long-term unemployment did not vary greatly between occupations, with one in four (25 per cent) unemployed managers on the dole for over six months, compared to one in three (31 per cent) of those from elementary occupations.

However, this gap has grown over the recession and lower-paid occupations are now experiencing the sharpest rise in the risk of long-term unemployment, says the TUC.

Out of work people from lower paid occupations such as cleaners, machine operators and sales assistants have a far greater risk of becoming long-term unemployed than those from higher-paid occupations such as managers, senior officials and professional occupations such as engineers, teachers and solicitors

According to the TUC, long-term unemployment can permanently scar people’s job prospects, both through long spells of unemployment and because they often have to work below their skill level.

Brendan Barber said: “The risk of long-term unemployment is a huge concern to the millions of people currently out of work as it can permanently scar their career prospects. The government must treat long-term unemployment as its top priority. Not only is it a personal tragedy for those who get stuck on the dole, it carries wider social and economic risk too.”

Unemployed workers on the dole for over six months by occupation

Occupation Proportion on dole for over six months, 2008 (per cent) Proportion on dole for over six months, 2011 (per cent) Change, 2008-11 (per cent) Median hourly pay

(£)

Managers and senior officials 25 34 9 18.71
Professional occupations 30 29 -1 20.29
Associate professional and technical occupations 29 33 4 14.53
Admin and secretarial occupations 28 37 9 9.71
Skilled trades occupations 28 40 12 10.62
Personal service occupations 28 37 9 8.25
Sales and customer service occupations 27 37 11 6.89
Process, plant and machine operatives 29
45
16 9.19
Elementary occupations 31 46 15 6.92
Total 29 40 11 11.15

Source: nomisweb, Annual Survey of Hours and Earnings 2011

 

 

You May Also Like: