You are here: Home - Household Bills - News -

Lower paid bear brunt of crisis with a third losing job or furloughed

Written by:
A third of lower-paid workers have lost their jobs or been furloughed as a result of the coronavirus pandemic, compared with less than one in ten top earners, research has found.

A survey of 6,005 adults by think tank the Resolution Foundation revealed that 5% of lower-paid workers have lost their job, and a further 25% have been furloughed.

In contrast, less than one in ten (8%) of the top fifth of earners have lost work or been furloughed.

Across the workforce as a whole, around 18% of workers have lost work or been furloughed, including 25% of private sector workers.

Workers with insecure working patterns are most likely to have lost their jobs or been furloughed. This includes 31% of employees who work variable hours, and 28% of those on zero-hours contracts.

Looking to the future, the research found that close to one-in-eight workers (13%) think they will lose their jobs in the coming three months, while nearly a quarter of workers (23%) believe their hours will be reduced.

Hannah Slaughter, economist at the Resolution Foundation, said: “Britain’s lowest-paid workers and those with the most insecure work are bearing the brunt of Britain’s economic crisis.

“Close to a third of our lowest-paid employees have already lost their jobs or been furloughed since the crisis began. Thankfully, the majority are having their earnings protected by the Government’s retention scheme. Nonetheless, their job prospects over the coming months are highly uncertain.

“The Government’s bold support measures have avoided unimaginable unemployment rises but the jobs crisis is far from over, with around one in seven workers still fearing they could lose their jobs in the coming months. We now need to see new measures – including job guarantees for young people – to tackle the high levels of joblessness that are likely to be with us long after the pandemic has subsided.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week