Women move into low-paid jobs

The Fawcett Society said that since 2008, female under-employment has nearly doubled, to 789,000, and an additional 371,000 women have moved into self-employment, which is typically very low paid.

One in eight low paid women now describe themselves as on a zero hours contract, said the campaign group.

Its survey of 1,000 low-paid women found that almost half felt worse off than five years ago and nearly one in 10 had taken out a loan from a pay day lender in the past year.

The Fawcett Society said increasing levels of women in low paid work, along with the declining value of low pay was contributing to widening inequality between women and men, pointing out that last year the gender pay gap increased for the first time in five years and now stands at 19.1 per cent for all employees.

A high number of low-paid women are working significantly below their skill or qualification level, said the report, with over a fifth of those polled educated to degree level, while over a third described themselves as overqualified for their current job.

Dr Eva Neitzert, deputy chief executive at the Fawcett Society, said: “The evidence is clear. After five years of decline, the UK economy is back on the upswing. Employment is up, unemployment is down and GDP is improving. However, as our research shows, low-paid women are being firmly shut out of the recovery.

“The numbers of women in low paid, insecure work are still alarmingly high. Since the crisis in 2008 we have seen a nearly two-fold increase in the numbers of women working in insecure, part-time and temporary jobs where they would prefer to be in secure, full-time roles. In addition, 371,000 more women have moved into self-employment – a form of work which is typically very low paid and where women earn an average of 40 per cent less than men.

“Since 2008 almost a million extra women have moved into types of work that are typically low paid and insecure.

“We are concerned that at a time when the numbers of women on low pay are increasing, the value of their pay is declining in real terms, meaning they are struggling more than ever to makes ends meet. Even the planned increase to the national minimum wage this October will only increase the value of the wage to 2005 levels in real terms. It is clear that work is not providing a sufficient route out of poverty for low paid women.”

Dr Neitzert said it was “shocking” that over one in five women earning less than £7.44 per hour are educated to degree level, adding that low-paid women were seeing their position deteriorate despite the economic recovery.

“This is not only bad for individual women, it’s hugely damaging to the economy at large with talent simply going to waste.”

Minister for Women and Equalities Nicky Morgan said: “We’re committed to delivering a long-term economic plan that works for women. That’s why we are giving employees the right to request flexible working as well as introducing shared parental leave, and introducing tax free childcare – also available for eligible parents who are self-employed.

“We have increased free childcare to 15 hours a week for all three and four-year-olds, and are extending this to the most disadvantaged 40 per cent of two-year-olds. Women can now make the right choice for them on how to balance work and families.”