Over 65% of new workers who have been unemployed in the last year are earning below the minimum living wage according to a new study from the Joseph Rowntree Foundation.
The Monitoring Poverty and Social Exclusion 2014 Report revealed that only 20% of those that had an underpaid job ten years ago have managed to move out of underpayment. The study also revealed that the average hourly rate fell for men by £1 from £13.90 to £12.90 between 2008 and 2013 whilst it decreased by 50p for women from £10.80 to £10.30 in the same period.
The research carried out by the foundation showed that for the lowest paid 25% of workers, the hourly income for men fell by 70p whilst part time hourly rates fell by 40p for women leaving them the worst off.
The report also found that 1.4 million people who were looking for full time employment agreed to work in part time roles due to the fact that they were unable to find full time employment.
Julia Unwin, chief executive of the Joseph Rowntree Foundation believed that the payment differences created a huge problem for the UK and would prevent the economy reaching it’s full potential due to a significant percentage of the population struggling with low incomes. She said:"We are concerned that the economic recovery we face will still have so many people living in poverty.
It is a risk, waste and cost we cannot afford,"
She added: “A comprehensive strategy is needed to tackle poverty in the UK. It must tackle the root causes of poverty, such as low pay and the high cost of essentials.”
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