1.5mn young British workers on low pay: Report

A UK report shows the number of young British workers on low pay has increased nearly four-fold over the past four decades to almost 1.5 million.

The report published by The Guardian on Saturday and based on research by the think tank Resolution Foundation showed almost three in 10 young Britons aged 21 to 30 (29 percent) are now low paid compared to less than one in ten (8 percent) in 1975.

A low pay worker in the UK is defined as earning less than two-thirds of the hourly median wage of 11.56 pounds, meaning less than 7.71 pounds an hour.

In addition, the report revealed that the wage gap between generations has also widened. For those aged between 51 and 60, just 16 percent (some 750,000) are low paid compared with 29 percent of young workers, while the proportion in low pay was 21 percent in both age groups in 2002.

Matthew Whittaker, chief economist at the Resolution Foundation, said younger British workers have been hit hardest in recent years, with many youths “finding the labour market tougher than they’ve ever done and this poses a challenge for all political parties.”
Furthermore, the report revealed that the share of young Britons buying homes fell to one of its lowest levels in June this year, with just three percent of buyers aged between 18 and 30.

The figure, obtained by the National Association of Estate Agents, meant more young Britons are being forced into rented accommodation as they do not have the funds to pay for a deposit on a home.

This comes as the Organization for Economic Co-operation and Development has warned that millions of more youths across Europe, including the UK, will struggle to reached their ambitions, including buying a home, due to low pay.