Under-employment up by 18 per cent in the North West since 2010

Lynn Collins, Regional Secretary of the North West Trade Union Congress

The number of people who are under-employed in the North West has increased by 18 per cent since 2010, according to new analysis published by the TUC today (Wednesday).

The analysis shows that while unemployment has fallen in the region by 33,000 since the last election, under-employment has risen by 55,000.

The current level of under-employment of around 362,000 in the North West is over 113,000 higher than it was before the recession (249,000).

The TUC analysis of the Labour Force Survey shows that across the UK the number of people who count as under-employed – people working part-time because they  can’t get a full-time job, or wanting more hours in their current job – has increased for both employees and the self-employed.

While there has been a small recent fall in involuntarily part-time work (people working part-time because they can’t get a full-time job), the TUC analysis reveals that a rise in the number who want more hours in their existing job means that under-employment is still increasing.

The fastest increase in regional under-employment since 2010 has been among self-employed workers. There has been a 22 per cent (9,800) increase in the number of self-employed people in the North West who class themselves as under-employed, compared to a 17 per cent rise (45,000) for employees.

The TUC says the analysis shows that despite talk of a recovery, continual real wage falls mean that more people than ever are looking for extra hours to make ends meet.

North West TUC Regional Secretary Lynn Collins said: “Ministers have made much of the improving jobs figures as a sign that all is now well with the economy. But although unemployment is falling, there are still over 360,000 people in the North West who would like to be working more hours than they are.

“With more jobs being created, you’d expect that under-employment would be on the wane too. But sadly with part-time, temporary, low-paid jobs often the only work that people can get, under-employment remains stubbornly high and is still rising. It’s not an either or debate, about quantity of jobs over quality of jobs. We need a return to good quality employment, not the race to the bottom of low hours and low pay.

“As the squeeze on pay continues, many people don’t have enough money for everyday essentials, let alone the cash to cover any unexpected emergencies. With no let up in their financial woes in sight, people are understandably looking to take on more hours just to keep the wolf from the door.

“Without a decent pay rise and the creation of more permanent, secure jobs, under-employment is unlikely to fall any time soon.”