9 December 2014

The increased use of zero-hours contracts and agency workers by employers is preventing young people from obtaining permanent jobs, according to new analysis published today (Tuesday) by the TUC.

The TUC analysis of official figures shows that 81 per cent of temporary agency workers aged 20–24, and 64 per cent of those aged 25–29, say they are in temporary work because they cannot find a permanent job. Similarly, 50 per cent of zero-hours contract workers aged 20–24 and 58 per cent of those aged 25–29 say they are only doing temporary work because they cannot find a permanent job.

Employers argue that agency working and zero-hours contracts offer young workers valuable job experience and a stepping stone into more permanent employment. However, analysis suggests that younger workers are increasingly trapped in insecure work, when they would really prefer permanent employment which is more likely to provide access to training and workplace benefits, such as pensions and leave entitlements.

Whilst those aged under 30 currently represent just one in four of the overall working population, they account for 44 per cent of all individual workers employed in temporary work, and 37 per cent of all agency workers.

The TUC research shows that in 2014 the majority of all zero-hours contract workers (50 per cent) were aged under 30 – this marks an increase of 11 per cent (when compared with figures for 2008).

The increase in temporary and insecure employment is also pushing young workers into poverty. The past decade has seen a huge rise in the proportion of under-25s living below the breadline. The TUC analysis shows that upheavals in the labour market – including the vast expansion in the use of zero-hours, part-time work and low-paid self-employment – is fuelling young worker poverty.

TUC General Secretary Frances O’Grady said: “The UK’s young people are increasingly bearing the brunt of the wages crisis.

“Younger workers are being pushed into zero-hours and temporary jobs from which they have little hope of escaping. The government can no longer afford to ignore the plight of young people, who are struggling to cope with poverty pay, poor prospects and the increased cost of housing and food.”

The TUC analysis forms part of a report looking into the effects of casualisation on the UK workforce, which will be published next week at the beginning of Decent Jobs Week. The TUC’s Decent Jobs Week is a campaign to raise awareness about the millions of workers in the UK who are trapped in low-paid and insecure jobs.

NOTES TO EDITORS:

The distribution of permanent, zero-hour contract, agency and temporary workers by age, compared with the working age population, 2014 (percentage)

16-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70+ yrs Working age population 3.2 9.8 11.9 10.9 9.4 10.3 10.9 10.1 8.3 7.0 5.6 2.5 Permanent workers 2.9 9.5 12.6 12.2 10.6 11.8 12.9 11.6 8.7 4.9 1.7 0.6 Zero-hours contract workers 14.1 25.5 10.7 8.5 6.5 5.5 5.9 6.5 7.6 4.6 4.0 0.6 Temporary workers 11.9 18.7 13.8 10.1 7.5 8.3 6.8 6.7 6.4 5.0 3.5 1.4 Agency workers 3.2 20.2 13.7 12.5 6.8 12 7.8 8.4 8.0 4.0 3.0 0.4

Source: Quarterly Labour Force Survey, April-June 2014

The distribution of permanent, zero-hour contract, agency and temporary workers by age, compared with the working age population, 2008 (percentage)

16-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70+ yrs Working age population 8.0 10.4 10.1 9.6 11.2 11.9 10.9 9.6 9.2 9.1 - - Permanent workers 4.6 9.7 11.6 10.9 12.3 13.3 12.3 10.3 8.5 5.0 1.1 0.5 Zero-hours contract workers 10.3 15.6 12.7 7.6 9.8 8.8 7.5 5.5 9.3 7.0 4.1 1.7 Temporary workers 13.2 19.4 10.7 8.2 10.1 8.1 7.7 6.2 6.5 6.1 2.6 1.2 Agency workers 5.3 24.1 13.5 11.2 10.3 7.0 8.7 8.2 7.3 4.1 0.5 -

Source: Quarterly Labour Force Survey, April-June 2008

Reasons given by agency workers for doing temporary work by age, 2014 (percentage)

16-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70+ yrs Contract included training 0 1.4 1.3 5.8 3.0 7.1 0 0 0 3.7 7.0 0 Contract for probationary period 0 1.3 1.5 2.0 1.9 0 0 0 0 0 0 0 Could not find permanent job 38.6 80.6 64.1 60.3 54.4 57.4 71.6 64.9 68.5 26.9 21.0 0 Did not want permanent job 23.8 2.9 6.6 11.7 18.9 8.3 13.7 20.1 5.4 53.6 59.8 100 Some other reason 37.7 13.8 28.0 20.7 21.7 25.4 14.7 15 26.2 15.8 12.2 0

Source: Quarterly Labour Force Survey, April-June 2014

Reasons given by zero hours contract workers for doing temporary work by age, 2014 (percentage)

16-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70+ yrs Contract included training 0 2.1 0 5.4 13.0 0 0 0 0 0 0 0 Contract for probationary period 4.7 0 0 0 0 0 0 6.5 0 0 0 0 Could not find permanent job 17.3 49.8 58.3 44.7 65.5 37.1 47.9 40.5 59.9 29.0 7.2 0 Did not want permanent job 54.9 31.0 19.6 34.2 13.7 44.7 23.0 42.7 21.4 39.0 69.5 70.9 Some other reason 23.1 17.1 22.1 15.6 7.7 18.2 29.2 10.3 18.8 32.0 23.3 29.1

Source: Quarterly Labour Force Survey, April-June 2014

- Proportion of under-25s living below the poverty line: MacInnes, T. Aldridge, H. Bushe, S. Kenway, P., Tinson, A., and Barry-Born, T. (2014) Monitoring Poverty and Social Exclusion 2014. Available at http://www.jrf.org.uk/publications/monitoring-poverty-and-social-exclusion-2014

- Case studies of young workers on temporary and insecure contracts are available from the TUC press office upon request

- Decent Jobs Week runs from Saturday 13 December until Sunday 21 December. More information on the Decent Jobs Week campaign and planned activities is available at www.decentjobsweek.org

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:

Clare Santry T: 020 7467 1372 M: 07717 531150 E: csantry@tuc.org.uk

Liz Chinchen T: 020 7467 1388 M: 07778 158175 E: media@tuc.org.uk

Tim Nichols T: 020 7467 1337 M: 07876 452902 E: tnichols@tuc.org.uk

