Falling unemployment has curbed the growth of zero hours contracts 23 April 2018 Britain’s tight labour market – which has seen unemployment fall to a 43-year low – has curbed the growth of zero hours contracts (ZHCs), the Resolution Foundation said today (Monday) in response to the latest ONS business survey of ZHCs use. The ONS survey, carried out in November 2017, showed that 1.8 million firms used ZHCs. This represents 6 per cent of all employment contracts – the same proportion as last year. They were most prevalent in hospitality and administration (where one in five firms used them), and construction and social care (where one in ten firms used them). Separate ONS data has shown that 901,000 workers were on a ZHC between October and December 2017 – a slight fall on the previous six months. They are most common among young people with 8 per cent of 18-24 years olds on a ZHC, compared to just 2 per cent of 25-64 year olds. Stephen Clarke, Senior Economic Analyst at the Resolution Foundation, said: “The use of zero hours contracts increased rapidly in the wake of the financial crisis but our tightening labour market has curbed their growth. “Nonetheless, around 900,000 workers are on a zero hours contract, including one in twelve young people. And while some workers appreciate the flexibility they bring, for others they bring insecurity and lower pay. “The government can help both of these groups by providing a right to guaranteed hours for anyone who has in practice been doing regular hours on a zero hours contract for at least three months.”
