Jobs growth brings decade-high employment rate for young people

women jobless 1

The proportion of young people in work in London is at its highest rate for nearly a decade.  Employment rates have been climbing steadily since the recession and annual figures from the ONS show that 457,000 16-24 year olds were in work in 2015.

Although London presents financial challenges for millennials who want to live and work here, the data from the Annual Population Survey reveals they are finding work at a better rate than at any time since 2006.

It has taken almost a decade for the employment rate of London’s young workforce to hit similar heights as 2006 when 47.4% of them had jobs. After a drop in youth employment rates following the financial crisis of 2008, the picture has gradually become brighter with 47.1% of the capital’s 16-24 year olds now working – a 3.8% increase from the previous year.

employment 16-24-2

The rate of increase for young women in particular has been higher with 5% more in jobs than 2014.

The steady increase in youth employment over the past six years may have contributed to a drop in the proportion of 16-24 year olds who are NEET status (not in employment, education or training).  In 2014, 5000 fewer young people were NEET throughout the capital compared to the previous year as the total number of youngsters with jobs increased by 17,400.  

At the end of 2015 London had the lowest proportion of England’s 16-24 year olds who were NEET at 9.4% 

The proportion of 16-24 year olds in work in the capital is below the national average of 53.5% but London has historically had a much higher rate of people of this age remaining in full-time education than other regions, keeping them out of the workforce.

Source data

See also

Mayoral Election Issues: The Economy and Jobs

Success of creative industries is good news for jobs growth in the capital

Over 750,000 jobs pay less than the living wage in the capital

 

 

Elderly bear the brunt of deprivation in the capital

Hands walking stick Kristo-Gothard Hunorshutterstock_162933494

Photo: Kristo-Gothard Hunor ┃Shutterstock.com

Elderly people in London are being left behind in the fight against deprivation.

Over the past 5 years a number of boroughs that were among the most deprived local authorities in England have reduced multiple causes of deprivation in many neighbourhoods. Hackney, Newham, Tower Hamlets and Haringey have pulled themselves above the bottom 20 boroughs in England since 2010.

But in these districts and others in the capital thousands of older people are living in income deprived households.  This is a particular problem for London. Of the 10 boroughs in England with the highest level of over 60s living in income deprived households, 7 are in London including the 3 with the worst record, Tower Hamlets, Hackney and Newham.

Local authorities with the highest proportion of older people in income deprivation
1 Tower Hamlets 49.7%
2 Hackney 43.1%
3 Newham 41%
4 Manchester 36.3%
5 Islington 36.1%
6 Southwark 34.3%
7 Lambeth 33.2%
8 Liverpool 32.7%
9 Knowsley 32.6%
10 Haringey 31.8%

5 more are in the 20 most income deprived boroughs for older people – Brent, Barking and Dagenham, Hammersmith and Fulham, Camden and Lewisham.

In Tower Hamlets nearly half the old people are living in income deprived households. The borough also has the worst record on children in income deprived households with 39% of under 16s affected.  In 6 other boroughs (Islington, Hackney, Barking and Dagenham, Enfield, Lambeth and Southwark) at least 30% of children are living in income deprived households.

These figures are revealed in data gathered for the Department of Communities and Local Government for the Index on Multiple Deprivation – the government’s measure of levels of deprivation across England. The index looks at 7 areas – income, employment, education, health and disability, crime, housing and the living environment.

The government measures deprivation in small areas called LSOAs.  Each of these neighbourhoods has around 1,500 residents.  There are 32,844 of them in England and 4,835 in London.

275 of these neighbourhoods in London are among the 10% most deprived in England. London has done well in reducing deprivation over the past 5 years, but the borough map shows a clear divide with much higher levels of deprivation in the east.

Deprivation borough map

The most deprived neighbourhood in the capital, according to the index, is an area of Hackney to the south of Homerton High Street and west of Mabley Green.  This neighbourhood is home to 1,300 people.

Of the 5 most deprived neighbourhoods in London, 2 are in Hackney, 2 in Westminster and 1 in Islington. The least deprived neighbourhood, according to the index, is in Bromley.

Source data

See also

Areas where pensioners most likely to be lonely identified

Low birth weight babies in Tower Hamlets 60% above London average

Elderly losing out in city with high levels of digital skills

98,000 not claiming their pension in a tale of two Londons

 

 

 

 

 

 

Huge pay gap in hourly rates between full time and part time workers

Daniel Wilson shutterstock_95849584-1-2-1People working part time are paid a little over half the hourly rate of those working in full-time employment, and the gap between full time and part time rates is wider in London than any area of the country.

Latest figures for earnings from the Office for National Statistics show that the median hourly rate in London is £9.22 if you work part time but £16.16 for those with a full-time job.

A quarter of the jobs in London are part time and many of them are low skilled. That’s 1.24 million jobs, with some people doing more than one to make up full time hours but being paid a fraction of what they might earn as a full time employee.

In London the gap in hourly rates of pay is 43% but in every other region of the country it is 40% of less. In the South West of England part time workers earn an hourly rate of 68% the full time rate, compared to 57% in London.

The median hourly rate for part time work in the capital is just 14p higher than the next nearest region, the South East of England, but £1.20 higher than the lowest paid region, the North East.

Hourly earnings part time regional

The figures are based on a sample of PAYE records and the ONS calculates a median, or mid point, rather than an average, which might be distorted by a small number of very high rates.

People living in Newham have a lower hourly part time rate than any region of the country and are typically being paid less than those living in Newcastle or Sunderland, where the cost of living is lower.

The rate is only a little higher in neighbouring Tower Hamlets and across the capital median hourly rates for part time workers are below the London Living Wage in 15 of the 33 boroughs – Croydon, Merton, Greenwich, Lambeth, Tower Hamlets, Newham, Barking and Dagenham, Hounslow, Ealing, Brent, Camden, Hackney, Haringey, Enfield and Waltham Forest.

Hourly earnings part time map

The Greater London Authority sets the London Living Wage. It is a voluntary rate and promoted by the Mayor, who is trying to get employers to sign up. At the time of the earnings survey in April the London Living Wage was £9.15. It was increased to £9.40 in October.

As previously reported by Urbs, there are three quarters of a million jobs in London paying less than the Living Wage.  Data shows that women are more likley than men to be in low paid work, and nearly half of those working for less than the London Living Wage are under 24.

Source data

See also

Lowest paid living in Newham as rates remain static across capital

Over 750,000 jobs pay less than the living wage in the capital

Buying a home gets further out of reach, now 11 times annual salary

 

 

North and East see growth in number of businesses

house plans 2Business growth across London has been more successful in the north and east of the capital in the past 6 years than the south and west.

The number of businesses has contracted in some central areas and fallen by 32% in the City. Data from the Office for National Statistics shows the largest growth in the number of individual business units between 2009-2015 was in Camden and Lambeth.

But a crescent of boroughs from Harrow in the north to Greenwich in the south east have seen growth above 20% since 2009 and in a number, including Newham and Redbridge, it is over 30%. At the same time there has been just single digit growth on the opposite side of the city.

Business unit growth

The data shows that there are currently 461,020 businesses in London. It’s the largest number of any UK region and the equivalent of the combined number for North West England, Yorkshire and Humberside.

More that 10% of businesses are in Westminster, and it has 10 times more than Barking and Dagenham, which has the fewest with 5,865.

Business unit numbers 2

The largest sector in terms of numbers of businesses in the capital is Professional, Scientific and Technical services, as it is in the UK as a whole. In London this accounts for 24% of all business. In the City of London this sector is 40% of all business units.

Information and Communication services is London’s second biggest sector with 13% of all businesses. Business administration and support, and construction are third and fourth. Across the country, construction is the second biggest industry sector in terms of numbers of businesses and retail makes up a higher proportion of businesses than in does in London.

Source data

Jobs forecast shows Tower Hamlets as engine of employment growth

Jobs concentrated in just 5 of London’s 33 boroughs

Shrinking public sector employment outdone by private sector jobs growth

 

 

 

Over 750,000 jobs pay less than the living wage in the capital

Bike work-2Nearly 1 in 5 jobs in London pays less than the living wage and in some areas of the capital between 30 and 40% of work has an hourly rate below the level Londoners need to live on.

The proportion of jobs below living wage has risen from 13% in 2008 to 19% last year, with women affected more than men and under 24s particularly hit.

Data from the Office for National Statistics show that in 2014 more than three quarters of a million jobs in London paid less than the living wage. Part time jobs are affected more than full time employment, 4 times more likely to be below the living wage.

The London Living Wage (LLW) is set by the Greater London Authority. It is a voluntary rate and promoted by the Mayor, who is trying to get employers to sign up. It is currently set at £9.15 per hour. Last year during the period for these job statistics it was £8.80.

The concept of the LLW was introduced in 2008 and followed by an Out of London rate in 2012. From 2008 to 2010 the proportion of jobs in London below the rate was stable at around 13%. In the past 5 years there has been a growth in low pay, low skill jobs but wage stagnation during the economic downturn of 2008/09 has meant that earnings are lagging behind.

Living Wage rate

The data shows that some sectors of the jobs market that are growing fast have a very high proportion of jobs below the living wage – 45% of social care jobs, 55% in retail, 65% in food and accommodation, and 78% of cleaning jobs.

It is not only work for private companies that is paying poorly. 6% of jobs in the public sector also pay below living wage level. That’s 51,000 jobs.

The only legal protection on pay is the National Minimum Wage, currently set at £6.50 per hour for those over 21. In the budget in July the government announced a new legal rate for over 25s, rather confusingly calling it the National Living Wage. This will be introduced in April at £7.20, but it will not get to the current level of the London Living Wage until 2020.

And it will offer no help to those under 24. Nearly half the jobs in this age group pay less than the living wage.

living wage age

Since 2008 the proportion of 18-24s paid below living wage has gone up by 11% and the rate of 25-34s has risen by 7%.

Women are more likely than men to have jobs below living wage – 22% compared to 16% of men.

London’s rate of 19% of all jobs paying below living wage makes it one of the lowest levels in the UK, on a par with the South East of England and Scotland. But it is not a uniform picture across the capital. 5 boroughs, Harrow, Waltham Forest, Enfield, Sutton and Newham, have rates at 30% and above.

Living wage map-2

Harrow has the second highest proportion of jobs that pay below living wage in the UK. Waltham Forest has the 7th rate.

While parts of the capital enjoy a high proportion of jobs paying above the living wage, tens of thousands of Londoners in the outer boroughs will continue to struggle with the cost of living in the city.

Source data

See also

Living Wage helps some but thousands struggling with low pay in London

Paying the rent takes up 72% of income for private tenants

Pay rates underline gap between rich and poor boroughs

New workers stick together and head north of river as they settle in the capital

Larger numbers of new overseas workers coming to the capital are settling north of the river than south with Newham and Brent as the favourite destinations.

334,419 people from overseas registered for a National Insurance number, allowing them to work or claim benefits, in the financial year 2014/15. More than 50,000 are in Newham and Brent, but there are more than 10,000 in 13 of the 20 boroughs north of the river.

The City of London has the highest rate as a proportion of the working age population, but the numbers are small. Newham and Brent stand out clearly, and the top 10 are all north of the river areas.

NI top 10 boroughs

In contrast, 8 of the 10 boroughs with the lowest proportions are south of the river.

NI bottom 10 boroughsNew arrivals from Romania are driving the Newham and Brent numbers. Romanians were allowed free access to the UK labour market from the beginning of 2014. In the financial year 2014/15 nearly 67,000 have settled in London and registered for NI. That’s 20% of all registrations in London.

As our map shows, there are more than 8,000 in both Newham and Brent. That’s around a third of all new overseas NI registrations in each of those boroughs. As previously reported by Urbs, these are the areas that have the highest levels of Romanian born Londoners according to data from the last census in 2011.

NI Map Romanians-2

And it is not only Romanians who are choosing to join established national communities in London. Bulgarians, who also gained free movement to work in Britain in 2014, have predominantly settled in Haringey, Newham and Enfield. These are the three areas with the most Bulgarian-born Londoners according to the census.

Ni Map Bulgarians

The same story emerges for Poles. Ealing has more people from Poland than any other London borough according to the census data. It also has by far the most new NI registrations.

NI Map Poles

The group that bucks this trend is the Italians. 35,000 registered for NI in the past year, the biggest national group after Romanians. The census data shows that Italians living in London favour inner London boroughs with Westminster and Kensington and Chelsea as favourite. As our map shows, new arrivals are still living centrally but Tower Hamlets is the number one choice with Brent and Haringey also proving popular.

NI Map Italians

This shift in emphasis may be due to the changing nature and income level of a growing workforce seeking employment in London amid more difficult economic circumstances back home since the financial crisis.

Source data

See also

What National Insurance really tells us about London’s overseas workforce

The importance of the London factor in overseas worker numbers

London population maps

The importance of the London factor in overseas worker numbers

For many people arriving from overseas, London is the first choice as the place to settle and find work. The most recent full year figures for non-UK citizens registering for a National Insurance number show that 334,000 of the 820,000 are in London. That’s just over 40%.

But looking at the detailed breakdown for nationality groups and the historic patterns show that some nationalities are more London-centric than others.

The biggest new factor in the data for 2014/15 is the rise in the number from Romania and Bulgaria, the so-called A2 European countries. They joined the EU in 2007 but restrictions were placed upon free movement to the UK until the start of 2014.

Anyone seeking to work or claim benefits in the UK needs a National Insurance number, and in the first full year of access to the UK 152,00 Romanians and 40,000 Bulgarians applied.

66,000 Romanians chose London as their base. That is 44%. The South East was the second most popular choice.

NI Romanians UK

About the same proportion of Bulgarians decided upon the capital. The South East, East and West Midlands are other favourite locations, as they are with Romanians.

NI Bulgarians UK

The biggest group of overseas workers in the UK is from Poland. Poland joined the EU in 2004 as one of the so-called A8 countries of Eastern Europe. But the pattern of NI registrations by Poles shows they are far less focused on London. In 2004/05 when free access began 61,000 came but a little less than a third settled in London.  Numbers went up in the following years, but the rate fell and currently stands at 21%.

The other growing group of arrivals in the London labour market is Southern Europeans. In 2014/15 35,000 Italians registered for NI in London. That’s 60% of the total for the UK. And a pattern of London largely favoured over over the rest of the UK  can be seen over the past 10 years.

Since the economic crisis of 2008 the numbers of workers from Italy, Spain, Portugal and Greece have risen. Italy and Spain have traditionally been first choice labour markets for Romanians, so their numbers arriving in the UK may be linked to the poor economic situation in Southern Europe.

Data for the next few years will reveal whether Romanians and Bulgarians will follow the A8 pattern with significant numbers working in locations across the UK or if they will remain more  London-centric like Southern Europeans.

Source data

See also

What National Insurance really tells us about London’s overseas workforce

Where in the world would you like to work?

 

 

Jobs forecast shows Tower Hamlets as engine of employment growth

commuters B&WLondon will experience a 16% growth in the employment market over the next 20 years creating nearly a million new jobs. This growth in employment from 5.5 million jobs in 2014 to 6.4 million by 2036 will be driven by the professional sector, real estate and scientific and technical roles.

Demonstrating the shifting nature of work in the capital some sectors will see a decline. The reduction in manufacturing, as previously reported by Urbs, will fall further, by 54%. That’s around 72,000 posts. Finance jobs are also forecast to shrink by around 9,000.

Jobs grown sector

The figures come from the GLA’s Employment Projection for 2015 which forecasts that jobs growth will be concentrated in inner London. Tower Hamlets stands out with an estimated 74% employment growth, adding 200,000 new jobs. That’s nearly a quarter of all the new posts in London for the period.  Southwark will see strong growth and other job creation is focused in central boroughs.

Jobs growth map

But, as the map shows, while the overall forecast appears optimistic many boroughs are predicted to show very low levels of job growth. And two, Croydon and Barking and Dagenham are expected to see a decline in employment, in line with current trends.

jobs growth trend

Source data

See also

Jobs growth shows changing face of work

Jobs concentrated in just 5 of London’s 33 boroughs

Long distance commuters could fill Albert Hall 13 times

People good, infrastructure less so – what foreign business thinks of London

 

Living Wage helps some but thousands struggling with low pay in London

poundsThe rebranding of the National Minimum Wage as the Living Wage with an increase to £7.20 per hour for over 25s announced in the budget by the Chancellor, George Osborne, gives no concession to the higher cost of living in London.

Around 1.4 million people in Britain are currently earning the National Minimum Wage of £6.50 an hour. About 3% of the London workforce is being paid at this rate, that’s 125,000 workers.

In giving this legal obligation on employers a new name Mr Osborne is borrowing from a long-standing campaign by the Living Wage Foundation, which has fought for both a UK-wide and a specific London Living Wage for many years. The current recommended London Living Wage is £9.15 per hour. While the Chancellor’s new legal Living Wage doesn’t come close to that it does close the gap that low paid people in London suffer to below £2 for the first time since 2010.

Living wage

The London Living Wage is calculated by the GLA and championed by the Mayor, Boris Johnson, now a Conservative MP and leadership hopeful. The GLA pays it and 400 employers have signed up. Since 2011, 20,000 workers have benefited from this voluntary scheme. But the GLA estimates that 800,000 workers in London are earning less than the London Living Wage.

Data from the Low Pay Commission shows that the largest number people earning the minimum wage are cleaners, shop workers, restaurant and bar staff. In its report in March this year it says that women, young people, ethnic minorities and people with disabilities are more likely to have minimum wage jobs.

The Chancellor’s new legal minimum may offer some help to these people, but the government is unlikely to want to intervene in the labour market to set costs higher in one part of the country.

Low pay, at minimum wage level and above it, will continue to be a challenge for many in the London workforce coping with the high cost of life in the capital.

See also

Jobs growth shows changing face of work

More than a quarter of UK tax revenue generated in London

Self employed map shows huge rise in parts of city

Economic inactivity, like unemployment, higher among ethnic groups

commuters B&W1.3 million working age Londoners are “economically inactive” and people from ethnic groups are 60% more likely to be in this category than white people.

Economic inactivity is a definition used for people who are not seeking work or unable to work.   The main groups in this category are the sick and disabled, people caring for family, students and those who have retired early.

Data from the Office of National Statistics show that 18.9% of the 3.5 million working age white people in London are economically inactive but for the capital’s 2.25 million working age people from other ethnic groups it is 30.2%

In 5 boroughs – Hackney, Lambeth, Tower Hamlets, Islington and Camden – the rate of economic inactivity among ethnic groups is more than twice that of whites. In Hackney, the rate is 39% for ethnic minorities and just 14% for the white population.

In 4 boroughs – Bexley, Barking & Dagenham, Bromley and Enfield – the rate is lower for ethnic groups than for whites. In Barking & Dagenham, which has a working population with similar numbers from white and ethnic groups, the rate is 30% for white and 26% for ethnic minorities.

Economic inactivity 2 boroughts

The data also shows that people who are economically inactive varies across different ethnic groups. It is highest among Pakistanis and Bangladeshis and lowest in people with an Indian background.

econmic inactivity ethnic figs

 

People of mixed ethnic origin are the only group where rates are lower in London than the rest of the UK.

As previously reported by Urbs London, people from ethnic groups are also twice as likely to be unemployed as white people.

Source data

See also

Jobs growth shows changing face of work

1 in 3 kids growing up in out-of-work households in parts of London