Low Pay Jobs
327,000 jobs below minimum wage in UK
Estimates from the Annual Survey of Hours and Earnings show that the number of jobs paid below the national minimum wage in the UK was 327,000 in Spring 2005, amounting to 1.3 per cent of all jobs in the labour market.
There are three rates for the national minimum wage: one for those aged between 16 and 17 (£3.00 per hour), one for those aged between 18 and 21 (£4.10 per hour) and one for those aged 22 and over (£4.85 per hour). In Spring 2005, 20,000 jobs (4.0 per cent) held by those aged 16 to 17 were paid below £3.00 per hour and 57,000 jobs (3.2 per cent) held by those aged 18 to 21 were paid below £4.10 per hour. Among those aged 22 and over, 249,000 jobs (1.1 per cent) were paid below £4.85 per hour.
People in part-time work were two and half times as likely as people in full-time work to be paid less than minimum wage, with 2.3 per cent of part-time jobs and 0.9 per cent of full-time jobs falling below the minimum wage.
Jobs held by women were more likely to fall below the minimum wage than jobs held by men (1.5 per cent compared with 1.1 per cent). This was entirely due to the greater number of women in part-time jobs.
It is important to note that these estimates do not measure non-compliance with the national minimum wage legislation. The survey used to provide these estimates does not indicate whether individuals fall into a category that is exempt from the legislation, such as apprentices or new trainees.