Labour market Half of all employers expect to be affected by the new National Living Wage 18 November 2015 Employers most likely to say they’ll manage higher costs by improving productivity Over half of all employers (54%) say the new National Living Wage (NLW) will have an effect on their wage bill, with three in ten of those organisations that will be affected by the new higher wage floor planning to raise productivity … Continued READ MORE
Welfare Up to a million care workers set to benefit from new National Living Wage 12 November 2015 Chancellor’s Autumn Statement must address the looming £1.4bn ‘pay crunch’ in social care Up to a million care workers are set to benefit from the new National Living Wage (NLW), but a combination of rising costs, a growing workforce and reduced funding will create a ‘pay crunch’ that the Chancellor must address in his Autumn … Continued READ MORE
Labour market Record employment but summer slowdown in pay recovery 11 November 2015 Pick-up in productivity should help to support wage growth in coming months The UK’s headline employment rate hit another historic high, but real wage growth slowed over the summer. A pick-up in productivity and further falls in unemployment should support upward pay pressure in the coming months, the Resolution Foundation said today (Wednesday) in response … Continued READ MORE
Economy and public finances Health and old age set to account for over 40 per cent of state spending by end of the decade 9 November 2015 Share of spending on education and economic development set to fall to its lowest level on record The share of state spending on old age and health is set to be more than twice that allocated to education and economic development combined by the end of the parliament – up from only 50% more pre-crisis … Continued READ MORE
Welfare Resolution Foundation warns that pushing ahead with tweaked proposals on tax credits would be expensive and still leave most families worse off 5 November 2015 New research shows the Treasury could reverse the most damaging tax credit cuts and still meet key fiscal objectives The government has several options for funding a reversal of its planned tax credit cuts, but pushing ahead with tweaked proposals would be expensive, leave millions of families worse off, and produce perverse work incentives, according … Continued READ MORE
Labour market Over a third of women in their 20s set to earn less than the living wage 2 November 2015 Over a third of women in their 20s are set to earn less than the living wage next year, according to a new analysis published today (Monday) by the Resolution Foundation to mark Living Wage week. The analysis finds that the number of employees earning less than the living wage is set to rise to … Continued READ MORE
Living standards· Intergenerational Centre Downturn has been felt very differently across generations 28 October 2015 Trend risks being reinforced over the parliament by welfare changes Commenting on new ONS figures published today (Wednesday) that ‘nowcast’ household incomes up to the year 2014/15, Adam Corlett, Economic Analyst at the Resolution Foundation said: “Today’s ONS figures highlight the depth of the recent living standards squeeze, and the welcome recovery in the last year, … Continued READ MORE
Labour market Employment at record high but return to pre-crash pay packets still a long way off 14 October 2015 Finance sector closest to returning to pre-crash earnings, construction furthest away A welcome return to falling unemployment is creating upward pressure on wages but, after an unprecedented six-year squeeze, average earnings remain a long way off their pre-crash peak, the Resolution Foundation said today (Wednesday) in response to the latest labour market statistics. The employment … Continued READ MORE
Labour market Private sector earnings growing at fastest rate in 15 years 12 October 2015 Low inflation and welcome shift in types of job roles being created is driving mini pay surge Private sector earnings are growing at their fastest rate since the early 2000s, but maintaining the pay surge into 2016 will prove challenging once inflation starts to rise, according to the Resolution Foundation’s new earnings outlook published … Continued READ MORE
Economy and public finances Summer Budget changes will push up to 200,000 working households into poverty 7 October 2015 Sharp increase in working poverty despite welcome pay boost from the ‘National Living Wage’ The number of poor working households will rise by up to an additional 200,000 over the course of the parliament as a result of policies announced in the Summer Budget, according to a report published today (Thursday) by the independent think-tank … Continued READ MORE
Labour market Proportion of low paid workers set to fall to lowest level since the mid-80s 4 October 2015 ‘Low pay’ gap will almost halve over the parliament The proportion of low paid employees across Britain is set to fall to its lowest level since 1985, according to a forthcoming report from the Resolution Foundation. Low Pay Britain 2015 will show that the lifting of the legal wage floor associated with the new ‘National … Continued READ MORE
Labour market Proportion of employees earning the legal minimum will more than double over next five years 1 October 2015 First minimum wage rise of the parliament foreshadows a steep escalation in the UK’s wage floor The proportion of employees earning the legal minimum is set to more than double over the next five years as a result of a substantial uplift in the wage floor associated with the new ‘National Living Wage’ (NLW), according … Continued READ MORE
Labour market Pay growth and employment rate both reach post-crisis highs 16 September 2015 But the restoration of pre-crisis pay level remains several years off Earning growth reached a post-crisis high in the three months to July, marking a fourth consecutive month of ‘catch up’ growth. But the restoration of pre-crisis pay levels remains several years off, the Resolution Foundation said today (Wednesday) in response to the latest labour … Continued READ MORE
Labour market National Living Wage will have modest impact on wage bills in most industries 15 September 2015 But hospitality, retail and support services will face significant increases as more workers are affected Around half of all employees set to benefit from the National Living Wage (NLW) work in industries where the resulting wage bill increase will be just 0.6 per cent or less – though the impact in hospitality, retail and support … Continued READ MORE
Labour market Earnings set to continue playing catch-up in coming months 13 September 2015 RF warns pace of recovery will be hard to maintain once inflation starts to rise from its historic low Real earnings are set to continue playing ‘catch-up’ in the short-term, with pay expected to maintain its recent growth rate, but there are doubts about how long this can continue, according to the Resolution Foundation’s latest … Continued READ MORE
Torsten Bell appointed as new Director of the Resolution Foundation 4 September 2015 Today (Friday) the Resolution Foundation announced that Torsten Bell has been appointed as its new Director. He will work alongside the Resolution Foundations recently appointed Executive Chair, David Willetts. Previously, Torsten worked as a Treasury civil servant before becoming special advisor to Alistair Darling during the financial crisis and then Director of Policy for the … Continued READ MORE
Labour market Three in ten female workers set to benefit from new ‘National Living Wage’ 3 September 2015 3.2m workers in total to gain directly from policy, with further 2.8m benefitting from ‘ripple effect’ Three in every ten (29 per cent) female employees in the country are set to receive pay rises as a result of the new ‘National Living Wage’, according to a new report published today (Thursday) by independent think-tank … Continued READ MORE
Labour market Continued presence of zero hours contracts suggests they might be a permanent feature of labour market 2 September 2015 Policy action needed to prevent them becoming standard form of employment in low-paid sectors The continued use of zero-hours contracts (ZHCs) over the recent period of strong employment recovery suggests they may remain a permanent feature of the labour market rather than a temporary reaction to the downturn, the Resolution Foundation said today (Wednesday) in … Continued READ MORE
Labour market Pay recovery looks set to continue throughout 2015 12 August 2015 Fresh policy action needed to reignite Britain’s stalled employment growth Britain’s pay recovery looks set to continue throughout 2015 but employment growth appears to have stalled, the Resolution Foundation said today (Wednesday) in response to the latest labour market figures. Real wages (excluding bonuses) continued to grow by 2.8% in the year to June … Continued READ MORE
Labour market Real wage growth set to remain above pre-crisis level but no longer accelerating 9 August 2015 Official figures published later this week are expected to show that average earnings again grew strongly last month but that the pace of this pay recovery has flatlined, with real wage growth remaining roughly fixed at 2.8 per cent, according to independent think tank the Resolution Foundation’s latest pay projection published today (Sunday). The analysis, … Continued READ MORE
Labour market ‘Blocked’ jobs market blighting career prospects of young people 28 July 2015 Average amount of time spent in the same job has risen steadily since mid-90s A sharp drop in the rate at which people move between jobs since the financial crisis has created a promotion blockage that risks permanently scarring the earnings of a generation of young workers, according to a new report published today (Tuesday) … Continued READ MORE
Labour market Almost a million workers missing in under-performing regional labour markets 19 July 2015 Closing the ‘jobs gap’ among groups furthest from the labour market would put Chancellor on track to meet his target of getting two million more people into work Raising employment rates among groups who are furthest away from the labour market up to the level seen in the best performing areas of the UK would … Continued READ MORE
Labour market Private sector continuing to lead pay rebound 15 July 2015 First fall in employment for two years suggests jobs surge could be losing momentum The pace of Britain’s real pay recovery increased slightly in May, though the first fall in employment for two years appears to have put jobs growth on pause, the independent think-tank the Resolution Foundation said today (Wednesday) in response to the … Continued READ MORE
Labour market Private sector wage growth set to match fastest rate in over a decade 13 July 2015 Parliament of public sector pay caps will widen the divide in Britain’s pay recovery Official figures published later this week are expected to show real wages continuing to grow at nearly 3 per cent, and by up to 3.5 per cent in the private sector, according to analysis from the independent think-tank the Resolution Foundation. … Continued READ MORE
Labour market Over 700,000 care workers set to benefit from new ‘National Living Wage’ – but extra funding essential or services will suffer 11 July 2015 The new National Living Wage (NLW) will deliver a welcome pay rise to between 700,000 and one million frontline care workers by 2020, according to new analysis published today (Sunday) by the independent think-tank the Resolution Foundation. The Foundation – which earlier this year called for and costed a plan to make social care a … Continued READ MORE