Get off your (courier) bike: Getting millennials’ careers back on track
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The document proposes a "Better Jobs Deal" to help millennials get their careers back on track after being hit hard by the economic crisis. It suggests swapping one-sided flexibility for job security by guaranteeing workers fixed hours contracts after 3 months. It also recommends focusing on sectors like retail, hospitality, and social care that employ many young people in low-paying jobs. Finally, the deal would help people in low-paying jobs grasp new opportunities through support to move jobs, relocate, or improve skills.
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Get off your (courier) bike: Getting millennials’ careers back on track
- 1. Get off your (courier) bike: Getting millennials’ careers back on track Stephen Clarke, Senior EconomicAnalyst at the Resolution Foundation Georgia Gould, Leader of Camden Council Rain Newton-Smith, Chief Economist at CBI AliTorabi, Campaigns Officer atTUC Torsten Bell, Director of the Resolution Foundation February 2018 @resfoundation #BetterJobsDeal Wifi: 2QAG_guest p: W3lc0m3!! 1
- 2. In the past it was all about youth unemployment 2
- 3. Now its about pay 3 Hourly pay (CPIH-adjusted)
- 4. Young people have been worst hit by the crisis 4 Size of squeeze Hourly pay (CPIH-adjusted)
- 5. Some ground has been made up 5 Ground made up Hourly pay (CPIH-adjusted)
- 6. But we’re still a long way from recovery 6 Distance from peak Hourly pay (CPIH-adjusted)
- 7. People are getting stuck 7
- 8. They are more likely to be in insecure work 8 Those aged 18 – 34… • Account for half of those on ZHCs or working through an agency • Account for a third of those working part-time, up by a fifth since the crisis • Twice as likely to be self-employed if they don’t have a degree
- 9. And in lower-paying sectors 9
- 10. Unsurprisingly there appears to be a crisis of confidence going on 10
- 11. We need a new approach 11
- 12. We need a new approach: A Better Jobs Deal 12 Old New Who to help: People out of work/on state support Struggling to escape low-pay Who to engage: Job-seekers Firms and sectors How: Higher expectations, conditionality Security and progression Same Target specific groups. Need to act now before its too late
- 13. Which swaps one-sided flexibility for security 13 • Guarantee workers a fixed hours contract after 3 months • Protect workers turning down non-guaranteed hours • Improve management of shifts and the rewards for doing them • More equalisation of benefits for the self-employed • Discourage ‘bogus’ self-employment through tax and legal changes • Extend minimum wage protection for self-employed ‘price-takers’
- 14. Focuses on sectors and workplaces 14 • Sectors should be part of active labour market policy • Retail, hospitality and social care • Empower younger workers individually and collectively
- 15. And helps people grasp new opportunities 15 • 1 million workers without a degree working in low-paid positions in wholesale, retail, hospitality, administration and social care • 1.5 million people failing to escape low pay over the decade to 2016 • Support those on low-pay who face barriers: Moving jobs Relocating for a new job Improving their skills
- 16. Get off your (courier) bike: Getting millennials’ careers back on track Stephen Clarke, Senior EconomicAnalyst at the Resolution Foundation Georgia Gould, Leader of Camden Council Rain Newton-Smith, Chief Economist at CBI AliTorabi, Campaigns Officer atTUC Torsten Bell, Director of the Resolution Foundation February 2018 @resfoundation #BetterJobsDeal Wifi: 2QAG_guest p: W3lc0m3!! 16
Editor's Notes
- So in this presentation I’m going to do two things: I’m going to explain how and why the labour market is no longer delivering for millennials I’m going to provide some thoughts on a new approach to active labour market policy to support this group
- So in what sense is the labour market not delivering? Well in the 1980s and 1990s were associated with large increases in youth unemployment. This chart shows the size of the downturn and then the increase in unemployment for those under 30.
- The issue in this recession was pay
- Early 1980s and 1990s youth unemployment this recession it was all about a failure to progress
- So why has this happened. Well I'm going to offer three main reasons for the poor labour market performance of the younger cohorts. The first is the large rise in atypical work amongst this group.
- The second is that there has been a significant shift into lower-paying sectors for this group
- And finally this group has been less willing than previous generations to take up new jobs and relocate for work.
- Just as in the 1990s we got to drips we started to get to grips with unemployment, now we need a new approach to get to grips with insecurity and a lack of pay progression. This isn’t necessarily about reinventing the wheel, but just as gameshows often steal some of the best bits of their predecessors we need to learn from the past while offering something fresh.
- This new approach has three new parts. The first aims to tackle insecure work. More younger people will likely spend more of their working lives in atypical forms of work and so we need to improve things for them. As well as guaranteeing people hours when they’ve been doing them, we also need to protect workers who turn down non-guarantee hours and regulate so that last minute shift changes are not allowed, furthermore we should explore how we can reward people for doing overtime, often at unsocial hours. In addition to this we need a new approach for self-employment. Partly this is about providing the self-employed with the rights and benefits that we’ve decided everyone in work deserves, the quid pro quo of this is ensuring that people are actively choosing to be self-employed not having in thrust upon them or doing it to reduce their tax bill. In addition to this we need to explore how we ensure that the self-employed are paid the minimum wage when they have no control over the rates they charge.
- The next big change is to focus on workplaces as well as workers. Recognising that a greater share of younger workers are likely to find themselves in lower-paying sectors, and that many of these people will want to progress, we must do more to offer progression routes in these sectors. In particular the government should invest more, and work more closely with hospitality, retail and social care. Such collaboration between the government and sectors should involve investment in skills, improvement in management practices, greater professionalism and more career pathways. In addition to this we need to empower workers to demand more. Just 1 in 10 workers younger workers is planning to push for a pay rise this year in light of what they think is happening to prices, lower than were going to do so in 2012. Partly this can be done at an individual level, by improving management processes and how employees engage with their manager on pay issues. But it’s also about giving younger workers more opportunity to organise collectively, particularly as less than 1 in 10 younger workers has a negative view on unions, less than older generations.
- Finally a new approach to labour market policy involves engaging with people who want to progress, not just those out of work or on benefits. We’ve identified around a million workers under the age of 35 who are in low-paid positions, in relatively low-paying sectors, without a degree and who have failed to escape low pay. Some of these people undoubtedly face barriers to doing so, the cost of relocating is too high, they can’t take the risk and the upfront costs sometimes associated with moving jobs or they need to improve their skills. According to our polling around a third of millennials hadn’t moved jobs for fears about the risks or pessimism about the opportunities in their local area. Where these people face barriers to moving, and where there is a clear financial constraint on them doing so, the state should be willing to offer them limited support.