#BeBoldForChange and the changing world of work: International Women’s day 2017

As women across the world mark the 106th International Women’s Day (IWD17) they are being encouraged to think about their place in the “changing world of work.” Perhaps by coincidence, only a few days earlier toy giant Lego announced plans for it’s latest toy set based on “real life female scientists, engineers and astronauts”. The design was the winner of the latest “Lego ideas” competition and will feature prominent female scientists including Katherine Johnson, a mathematician and space scientist who worked with NASA and was recently featured in the Oscar nominated film Hidden Figures.

Despite attempts to raise the profiles of successful and prominent women in employment, research consistently highlights the persistence of the gender pay gap, albeit more prominent in some professions than others. The “motherhood penalty” still stagnates, or even cripples the careers of many women, and women are still not present in equal numbers in business or politics. Figures show that globally, women’s education, health and violence towards women is still worse than that of men, and that these factors affect their ability to participate fully in employment.

The scale of gender inequalities

A report published by the charity Engender ahead of IWD17 found that of the 3029 top leadership positions across business, politics, public sector, media, culture and sport in Scotland, only 27% of positions are held by women. The report found that, although women make up 52% of the population, they represent only:

  • 35% of Members of the Scottish Parliament
  • 7% of senior police officers
  • 20% of museum and gallery directors
  • 25% of local councillors
  • 16% of local authority leaders
  • 28% of public body chief executives
  • 26% of university principals

Previous research by Engender also found that women still do the majority of “invisible” work including housework, raising children and caring for vulnerable relatives. According to the 2011 census data, 62% of unpaid carers are women and the UK household satellite accounts found that the value of informal childcare in 2010 was £343 billion – equivalent to 23% of GDP. A report published by the Fawcett Society highlighted that inequalities also exists between women. The report found that the gender pay gap was even more exaggerated in black and ethnic minority (BAME) women than in other groups.

Women in Employment

The most recent employment figures for the UK showed that unemployment stood at 4.8%, the lowest level since 2005, and the proportion of women in work reached a record high of 70%. The latest PwC Women in Work Index measures levels of female economic empowerment across 33 OECD countries, based on five indicators. It reported that the UK had rapidly improved since 2000. However it also said that at the current rate of progress it will still take until 2041 to close the gender pay gap in the UK.

In short the picture is improving, but what exactly is being done to help women enter and remain in employment?

Supporting women into work

Supporting women into work was highlighted as a key policy objective for both the coalition and Conservative governments. A number of strategies have been considered to help different groups of women into employment:

  • Supporting women from disadvantaged backgrounds into employment – this includes women who have little to no formal education, victims of domestic violence, disabled women, and female offenders.
  • Supporting young women into traditionally “non female” roles – this includes encouraging young women and girls to take subjects at school and continue these onto university. It also means making apprenticeships open and inclusive, and marketable to everyone.
  • Supporting women to start up their own businesses – recent research highlighted that the annual revenue of women-led companies in the UK is growing at 28 per cent with an average turnover of £3.7 million. Potential support includes making women aware of specific funding they are entitled to, and helping them with the initial start up process. We’ve blogged before about female entrepreneurs if you want to know more.
  • Incentives and increased flexibility for women with children – For many women, the cost of childcare for young children means that working does not make financial sense for them. Employers have been taking steps to make working hours and conditions more flexible, some even providing crèche facilities or credits for childcare to staff to ease the pressure of childcare on working families. Changes to maternity and paternity leave also allow fathers to take a greater caring responsibility for new babies, and can help make the transition back to work easier for some families.
  • Supporting older women – this group has been identified as having been somewhat neglected by back-to- or entry-to-work schemes. Age related conditions, increasing caring responsibilities for elderly parents or grandchildren, and decisions to retrain or change careers can all impact significantly on the professional careers of older women.
  • Supporting women to progress – Women typically still make up the majority of the low-skilled, low pay work force, with many working part time in order to meet childcare needs. However, research has shown that this impacts significant on their ability to progress. While progression is an issue across the board for women in employment, it is particularly noticeable for this group. Research from NPI showed that there were around 5.1 million low paid employees in 2015. 62%, or 3.2 million of them were women and options for progression were significantly lower than for men, which keeps many women in a cycle of low-skilled, low paid, often insecure work.

Supporting women back to work

Many women take career breaks during their professional lives, most commonly to start or look after family. However, when they decide to return they face a number of barriers. These barriers mean that many returners end up in lower skilled jobs, either because their old job does not accommodate new flexible working needs or because extended time away from work is associated with a loss of skill. The UK government have launched a number of strategies and consultations aimed at encouraging and supporting women back to work after a career break. Individual organisations have also developed their own schemes, including the Back to Business scheme developed by PwC and Relaunch your career from MasterCard.

Many schemes include coaching and mentoring, phased returns to work, flexible working options and job shares, where appropriate. Increasingly, organisations now offer childcare options. Employers are also now allowing more staff to work from home, with the increased use of videoconferencing and online document sharing.

Earlier this week, Vodafone announced that it is launching the one of the world’s largest supported return to work programmes, ReConnect to recruit women who have taken a career break, as well as committing to increasing the proportion of women in management and leadership roles.

Final thoughts

Fully unlocking women’s economic empowerment – one of the cornerstones of true gender equality – is reliant upon unlocking the full potential of women in the workplace. As people across the world celebrate the economic, social and political achievements of women, as well as a growing awareness of their collective power to agitate for change, International Women’s Day also provides the opportunity to reflect on the position of women within society, and the steps that can be taken to improve this in the future.

#BeBoldForChange is the official hashtag for this years #IWD17 celebrations. You can submit your #BeBoldForChange action via the IWD website.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other articles on women in employment and women in technology.

Is the record high employment rate masking the reality of in-work poverty?

wage-packetBy Heather Cameron

The employment rate may have hit a record high of 74.6%, with unemployment continuing to run at an 11-year low, but in-work poverty has also reached unprecedented levels.

More than half (55%) of people in poverty are living in working households, including millions of children, according to the latest Monitoring poverty and social exclusion (MPSE) report.

And new research for the Joseph Rowntree Foundation (JRF) published last week says four million more people are living below an adequate standard of living and ‘just managing’ at best.

Statistics

The findings of MPSE paint a bleak picture for a substantial share of the UK population. It notes that the proportion of the UK population living in poverty has barely changed since 2002/03, remaining at around 21%. And at 55%, those in poverty in working households has reached its highest level since the data set began in 1994/95.

Of this 55%, four fifths of the adults in these families are themselves working – a total of 3.8 million workers were living in poverty in 2014/15, an increase of around a million since 2004/05.

Female employees make up the single largest group within this group at 1.5 million, followed by male employees at 1.4 million. However, the majority of workers in in-work poverty are male (53%) as there were 620,000 male self-employed workers in poverty in 2014/15, while there were 250,000 female self-employed workers.

The story is different for workless households, however, as the proportion of people in poverty in these households has decreased, with the number in workless or retired families having fallen by half a million. Despite the significant increase in the number of people aged 65 and over, the figures show there are 400,000 fewer pensioners in poverty. There have also been reductions in the number of children in workless households.

While this is clearly encouraging, as the MPSE report suggests, it is difficult to categorise this as progress since there has been little change in the relative poverty measure overall.

Moreover, the new research from JRF warns that millions of just managing families are on the tipping point of falling into poverty as 30% of the population are living below the minimum income standard (MIS). In addition, 11 million people were found to be living far short of MIS, up from 9.1 million, who have incomes below 75% of the standard.

So what is causing these worrying statistics?

Contributory factors

The labour market has undoubtedly had some influence on these figures, with low wages and insecurity. Although average incomes have begun to rise, they are still below their peak. Male weekly earnings are still lower than 2005 levels and female weekly earnings, although now equal to 2005 levels, are still below what they were in 2010.  And with inflation expected to return, it has been suggested that hourly pay is unlikely to reach its pre-recession peak before 2020.

However, this is only part of the issue. There are also a number of other contributory factors, including:

  • increasing cost of living;
  • housing market failures; and
  • cuts in welfare benefits.

The increase in numbers living below an adequate standard of living has been driven by rising living costs while incomes stagnate. The price of a minimum ‘basket of goods’ has risen 27-30% since 2008, and average earnings by only half of this. The JRF analysis suggests the cost of living could be 10% higher by 2020, a period when much state support has been frozen.

Housing is also an important factor. It is often too expensive and of poor quality, particularly in the private rented sector. The MPSE findings show that the number of private renters in poverty has doubled over the last decade, with rent accounting for at least a third of income for more than 70% of private renters in poverty.

Households accepted as homeless and those in temporary accommodation have also increased and landlord evictions are close to a ten-year high.

Added to this, is the four-year freeze on benefits, tax credits and Universal Credit (UC), along with a reduction in the overall benefit cap. The benefit cap mainly affects households with children and will increase the number of families affected, from 20,000 to 112,000.

All this puts those on the lowest incomes at risk.

Way forward

Clearly, strong growth in the number of people in employment does not mean an end to employment-related disadvantage.

To help end poverty, the JRF has called on the government to make a number of changes, including:

  • reversing cuts to the amount people can earn before their benefits are reduced;
  • ending the freeze on working age benefits;
  • extending support to low wage sectors to reduce the productivity gap; and
  • investing in a living rents scheme to provide more affordable housing.

As the MPSE report concludes, “solutions for in-work poverty require more than just more work.”


If you enjoyed reading this, you may also like our previous articles on poverty.

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The disability employment gap – what needs to be done to change employer attitudes to disability?

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By Heather Cameron

‘Employment rates amongst disabled people reveal one of the most significant inequalities in the UK today’ (The work, health and disability Green Paper, 2016)

The government’s recent green paper highlights the extent of the disability employment gap in the UK, showing that less than half (48%) of disabled people are employed, compared to 80% of the non-disabled population.

Despite an increase in the number of disabled people in work, this employment gap between the disabled and non-disabled population has remained largely static at around 30 percentage points for the past decade. There are nearly four million disabled people in work, but research has shown that more disabled people have fallen out of work than moved into work, while the rest of the population has experienced movement in the opposite direction.

The government’s manifesto ambition is to halve the disability employment gap by 2020 – equivalent to 1.12 million more disabled people in work – but at the current rate of progress, it has been suggested that it would take more than 200 years for the employment gap to halve.

At a time when the UK’s employment rate is at its highest level since records began, with almost 75% of the working population in work, this is a disheartening statistic.

Barriers

This suggests that disabled people continue to face significant barriers to work. Some that are regularly cited, include:

  • physical barriers such as access to transport and accessibility within places of work;
  • a skills and qualifications gap between the disabled and non-disabled population, with disabled people only about half as likely to go to university as non-disabled people, and less likely to take up an apprenticeship;
  • insufficient support for disabled people;
  • insufficient support for employers; and
  • employer attitudes.

Employer attitudes have been cited as an ongoing issue which appears to stem from a lack of awareness and understanding.

A recent survey of recruiters found that 95% said companies are ‘fearful’ or ‘unsure’ about hiring disabled people. And analysis from disability charity Scope, suggests that employer attitudes haven’t improved over the last four years.

A new report from the Work and Pensions Committee found that many employers are not sure of their Equality Act duties, or are unwilling to make adjustments for disabled employees. It also suggested that there may be ‘discriminatory or unhelpful attitudes’ about the capabilities of disabled people.

Employers’ views

Indeed, employers themselves have highlighted the challenges of employing disabled people. Recent research from Disability Rights UK, which surveyed businesses from across the UK, reveals that one in 10 businesses believe they are unable to employ disabled people.

It also found that the biggest challenge to employing disabled people is that applicants aren’t always willing to be open about their disability, with around half of respondents (47%) saying that it would help if job applicants were more willing to be open about their health condition. Other challenges highlighted include:

  • fellow staff or line managers not having sufficient training to support disabled colleagues, and the lack of accessibility of some businesses for people with certain types of impairments;
  • concern that disabled people are more likely to take time off work;
  • difficulties in discussing the management of disabilities;
  • the cost of modifying equipment, making it expensive to employ disabled people; and
  • concerns that disabled people will claim discrimination if the job does not work out.

Such concerns are often misplaced, however. The survey indicates that businesses feel constrained by a lack of information about the adaptions they may need to make, and the support available to them. It seems that not enough people are aware of Access to Work, the government scheme that provides grants for adjustments to support people with disabilities or health conditions in employment.

And not all attitudes were negative. The vast majority (84%) of respondents said that disabled people make a valuable contribution to the workplace; and more than four-fifths (82%) considered disabled people as productive as non-disabled staff.

Final thoughts

The research clearly demonstrates that more needs to be done to tackle the disability employment gap. The Work and Pensions Committee report concludes that the government will stand little chance of halving the gap unless employers are fully committed to taking on and retaining more disabled people.

In particular, a transformation in attitudes to disability employment and support for disabled people will be required.

As the government’s green paper argues, “real and lasting change will only come about if we can also address negative cultural and social attitudes about disabled people and people with long-term health conditions.”


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‘Think globally, act locally’ – local job creation

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By Heather Cameron

The Local Government Association (LGA) last week called for greater devolution of employment and skills funding to councils and a ‘radical rethink’ of the way Jobcentre Plus works. Chairman of the LGA’s People and Places Board said:

“Job centres need to engage with more unemployed people for a start and then help more claimants move into sustainable employment. This is crucial to boosting local growth. Councils know best how to do this. We know our local economies, we know our local employers and we know our residents and we can bring local services together in a way central government will never be able to.”

Local solutions

Of course, local solutions for job creation and economic growth is not a new idea. Local development and job creation initiatives first emerged in the 1980s, in response to a ‘new phenomenon of high, persistent and concentrated unemployment that national policies seemed powerless to reverse on their own. Since then they have continued to spread and develop.

Although unemployment is at an 11-year low in the UK, according to recent research many countries, including the UK, are seeing widening gaps in the geographic distribution of skills and jobs. And the importance of local solutions has again been highlighted.

The OECD’s most recent edition of Job Creation and Local Economic Development argues that local development is a key tool for addressing the problem of such unequal distribution. Similarly, in its submission to last year’s Autumn Statement, the LGA argued that local government is central to the delivery of locally tailored solutions to national public policy challenges.

Boosting productivity growth, while ensuring growth delivers improved living standards and distributes the benefits of increased prosperity equally, are highlighted by the OECD as the twin challenges facing all policymakers. Underlined as a crucial but difficult task, it is argued that ‘actions originating at any single governance level or policy area will not be sufficient’.

Whole-of-government approach

The OECD report, therefore, examines how national and local actors can better work together to support economic development and job creation at the local level. In particular, it outlines what both national and local actors can do to improve the local implementation of vocational education and training (VET) and SME and entrepreneurship policies.

Among the recommendations for national actors include:

  • Design VET frameworks that allow local stakeholders to tailor training to local labour market needs while still maintaining a certain level of national consistency
  • Build the capacities needed to make VET systems more agile locally
  • Develop a strong national apprenticeship framework that builds a high quality system, includes strategically-designed incentives for employer participation, and allows for flexible delivery frameworks
  • Maximise the efficiency of SME and entrepreneurship policy delivery by allowing for local tailoring, co-locating services, using intermediary organisations to deliver programmes, and/or developing formal agreements for the division of competences and financing between governance levels
  • Develop national frameworks and strategies to support disadvantaged young people in entrepreneurship, and clearly assign responsibility for this policy portfolio to a single agency or ministry
  • Embed entrepreneurship into national education frameworks, while also providing integrated packages of entrepreneurship support in other settings to reach young people outside of the education system

Among the recommendations for local actors include:

  • Balance the need to meet pressing local labour market demands with ensuring that VET helps to move local economies to higher skilled and value-added products and services
  • Encourage VET teachers and trainers to maintain contact with local employers and industries to keep their skills and knowledge up-to-date
  • Boost employer engagement in apprenticeships
  • Tailor the delivery of apprenticeship programmes so that they work better for a broader range of employers, including SMEs, and disadvantaged populations
  • Forge connections across administrative borders in developing and co-ordinating entrepreneurship and SME policies
  • Work with organisations that have already established relationships with disadvantaged youth to maximise the reach of entrepreneurship programmes
  • To better reach disadvantaged youth, provide integrated packages of support, use hands-on learning methods, and involve entrepreneurs in programme delivery

Decentralisation?

The report concludes that local actors need both flexibility to tailor delivery of national policies to local conditions and the capacity to use this flexibility to ensure informed decision-making.

It is noted that this doesn’t necessarily mean political decentralisation, but rather ensuring the right tools are used to add local flexibility while maintaining national coherence.


If you found this article interesting, you may also like to read our previous blog on Local Enterprise Partnerships

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Beating the back to work blues

Moving Crowds 4

The first journey into work after the Christmas break has to be one of the most painful journeys of the year. Overfed, possibly hungover, still angry at that sly comment your distant relative made across the dinner table a week ago, you and many others return to work at the start of January with the glow of the next set of bank holidays seeming very far in the distance (FYI the next bank holiday is Good Friday on 14th April – yes, APRIL *sobs*).

It’s no surprise then, that January is the time of the year that sees the highest rates of divorce. This is the month heralding some of the highest stress rates of the year, and is the lowest point in the calendar for many people who face daily battles with mental health. A researcher at Cardiff University, Dr Cliff Arnall has even created a formula to work out that 24th January is the “most depressing day of the year”.

Mental health takes centre stage at work

It’s therefore apt that as many of us spend much of our time at work, there has been an increasing recognition of the role of employers in supporting mental health.

In October 2016, Business in the Community published its 2016 Mental Health at Work report, which included a toolkit for employers. The report highlights the damage that concealing their condition can do to people with mental health problems, as well as the level of support that should be made available to employees to help promote positive mental health and wellbeing in the workplace.

Recommendations made in the report include:

  • Talk – Organisations and employers should break the culture of silence that surrounds mental health, particularly in the workplace by talking the Time to change employers pledge
  • Train – Organisations and employers should invest in training to ensure basic mental health literacy for all employees in all areas of the business
  • Take action – Organisations and employers should “close the gap” by asking all staff about their experiences of their own mental health at work and how any issues have been dealt with. Understanding the perceptions that staff have of how the company supports mental health generally across the organisation, can help identify steps to improve/ change practice if necessary.

Employers role in removing stigma

Ensuring good mental health in the workplace affects all levels of staff, from senior management to the newest members of staff who are still training or serving a probationary period. Multiple reports, including those by ACAS, CIPD, MIND and The Work Foundation, have stressed the importance of employers setting an example to their staff. That includes senior staff recognising when they need to take time to support their mental wellbeing too.

The Chartered Institute of Personnel and Development’s (CIPD) Absence Management Report for 2013, showed that stress is one of the biggest causes of long-term absence in the workplace. The report also showed that it impacts staff at all levels:

  • 40% of respondents said that stress-related absence increased over the past year for the workforce as a whole
  • 20% said it increased for managers
  • 1 in 8 reported a rise for senior managers
  • Only 44% would feel confident enough to disclose unmanageable stress or mental health problems to their current employer or manager.

The report suggested that if senior managers acknowledged their own mental health issues, it would remove some of the stigma associated with asking for help with mental health in the workplace. However, doing this requires a significant culture shift in how many organisations are run – which could take years. The Work Foundation, commenting on the 2016 version of the CIPD report, found that:

“Effective management of mental health in the workplace can save around 30% of costs felt by employers.  Line managers have a really important role to play in creating an environment where employees feel safe to disclose with the knowledge that the organisation will do something to help them.  Managers need to have a positive employment relationship where open and honest conversations can be had to discuss any required adjustments and provide that supportive environment.”

Using “blue Monday” to initiate conversations on mental health

This year “Blue Monday” falls on the 16th January. It may be called the worst Monday of the year, but employers are being encouraged to use the publicity around it to create opportunities for employees to discuss mental health in the workplace.

Questions to ask could be: what makes them stressed, what makes them anxious, how can the office environment be changed to improve the wellbeing of employees? There are also ideas for activities to help staff “beat the blues”, including lunchtime exercise, healthy eating and talking to colleagues about things other than work.

Specific sectors have also begun to initiate schemes to try to improve mental health and well being. Mates in Mind is a programme to be launched in early 2017 by the Health in Construction Leadership Group with the support of the British Safety Council. Modelled on an Australian programme, it is a sector-wide programme intended to help improve and promote positive mental health across the construction industry in the UK.

In social work, too, informal peer mentoring schemes have sprung up organically in many offices, with co-workers giving each other support when they need it, often in an informal capacity. More formal schemes have been set up to help social workers monitor and feel safe when talking about their mental health to colleagues and superiors. Feedback indicates that the low rate of retention of social workers is, in part, due to stress caused by secondary trauma or excessive caseloads.

 

So, as we trudge back to our desks for the first working days after Christmas, it is perhaps worth keeping some of these ideas in mind. Employers are keen to talk about mental health, but they also need the input of staff in order for them to work.

Putting some of these ideas into practice, may also go some way to improving the situation of many with hidden mental health conditions in the workplace who don’t feel confident enough to speak openly about it. We needn’t wait for the next bank holiday to improve our mood, small changes can make a big difference to wellbeing in the workplace!


Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other workplace mental health articles: 

Managing mental ill health in the workplace

Ending the stigma around anxiety

‘Olderpreneurs’ – the new generation of start-ups?

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By Heather Cameron

Entrepreneurs are often portrayed as bright young things launching start-ups, but does the reality of start-up demographics paint a different picture?

Changing demographics

The UK has certainly witnessed a boom in young entrepreneurship in recent years – the number of under-35s starting businesses in the UK rose by more than 70% between 2006 and 2014.

However, recent research suggests that the boom in young entrepreneurs may be waning. According to research commissioned by Google earlier this year, the majority of young people are “not interested” in starting a business, with four out of five young people surveyed saying they would rather work for a well-established company. Particular concerns were also highlighted over risk and instability.

The UK is, however, still ranked in the top 10 countries with the most favourable conditions for entrepreneurs to start and scale new businesses. And official data suggests that the UK continues to see record numbers of business start-ups, exceeding 600,000 in 2015, up on the previous two years.

So if it isn’t the younger generation heading up this record number, who is it?

‘Olderpreneurs’

Despite media coverage of the entrepreneurial spirit of the younger generation, the average age of an entrepreneur in the UK has actually been estimated at 47.

And according to the latest data from the Global Entrepreneurship Monitor (GEM), the most notable increase in entrepreneurial activity has been amongst the over 50 age group.

Referred to as ‘olderpreneurs’, this group could arguably be the new start-up generation.

There has been a 46.5% increase in freelancers over 50 since 2008, an age group that accounts for 72% of all self-employed people. According to official statistics there are around 1.8 million self-employed people over the age of 50 in the UK.

With an ageing population that is also becoming healthier, perhaps this shouldn’t be such a surprise.

Motivations

Motivations for people starting up their own businesses include redundancy, retirement, family circumstances, growing older and life stage milestones.

As life expectancy increases, many don’t want to give up work at the traditional retirement age, as they still lead active lives. Retirement has been cited as an ‘important tipping point’ for some, with the main motivation not to make money or grow their business, but rather something to keep them occupied or earn some extra money while doing something relatively easy.

The introduction of pension freedoms last year has also led to more over 50s using their pensions to fund new business ventures. The over 55s cashed in more than £4.7billion of their pensions in the first six months after pension freedoms were introduced.

Economic impact

And such activity is good news for the economy. It has been suggested that if the employment rate of 50-64 year olds matched that of the 35-49 age group, the UK economy could be boosted by £88 billion.

Older entrepreneurs have also been shown to be more successful than their younger counterparts. It has been highlighted that businesses run by owner-managers over 50 drive up revenues at their companies three-and-a-half times faster than GDP growth – 11.5% compared with 3.1%.

And older entrepreneurs create jobs at a rate more than seven times faster than the UK economic average.

It has also been suggested by the Prince’s Initiative for Mature Enterprise (PRIME) that start-up failure rates in this age bracket are remarkably low. It recently revealed that 95% of its members were still in business a year or more after starting up, compared to the national average of just 66%.

Final thoughts

A significant percentage of the UK population is past retirement age. And the number of people aged 50 to State Pension age is expected to rise by 3.2 million, while the number aged 16 to 49 will have reduced by 200,000 over the next 10 years.

As a result, keeping this group economically engaged surely has to be a priority.


If you found this article interesting, you may also like to read our previous articles on entrepreneurship and self-employment

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Who’s afraid of the big, bad robot? Preparing the labour market for a future with AI

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By Heather Cameron

Science fiction is slowly becoming science fact”. This is what the interim Chair of the government’s Science and Technology Committee said in their recently published report on robotics and artificial intelligence (AI).

While admitting there is still some way to go before we witness systems and robots like those portrayed in the creative arts such as Star Wars and Ex Machina, the report noted that there have been a series of recent advances across these fields that are beginning to have transformational impacts.

But just what will these impacts look like, particularly in relation to the labour market?

‘Transformational impacts’

Driverless cars and supercomputers that assist with medical diagnoses are highlighted as some of the transformational impacts of AI that have already arrived.  Others include improved automated voice recognition software and predictive text.

The increase in processing power, the wealth of data and the development of techniques such as ‘deep learning’ have all contributed to the recent progress.

However, the report also notes that such advances raise a number of social, ethical and legal questions that require consideration. These include issues about the transparency of AI decision-making as well as privacy and safety.

And while there is much excitement about the potential of AI to improve and enhance our lives, there is also widespread concern over the potential impact of increasing automation on the workplace.

Implications for employment

Fears over increased unemployment as a result of increasing automation are longstanding. The inquiry found conflicting views over the potential impact to the workforce, with some predicting a rise in unemployment, while others anticipate a transformation in the type of employment available.

It is likely that some occupations will become obsolete. Deloitte has warned that 11 million jobs across the UK economy are at high risk of being automated by 2036, with the retail and transport sectors most vulnerable. The research also indicated that almost 750,000 net jobs had been lost in manufacturing since the turn of the millennium, while the wholesale and retail sector saw net job losses of 338,000.

However, it was noted that millions of new roles had also been created in order to meet changing demand. So perhaps it is adaptation within the workforce that is needed.

Indeed, the Committee’s report highlights a need to focus on delivering the skills needed for people to adapt and thrive as new technology continues to emerge. It has been argued elsewhere that cognitive and social and behavioural skills should be made a priority in any skills strategy for the 21st century to “make workers more resilient to technology-driven labor market shocks like automation.”

And of course some sectors may be more susceptible than others.

Recent research by McKinsey suggests that the impact of automation differs dramatically across sectors and activities. It found that:

While automation will eliminate very few occupations entirely in the next decade, it will affect portions of almost all jobs to a greater or lesser degree, depending on the type of work they entail. Automation, now going beyond routine manufacturing activities, has the potential, as least with regard to its technical feasibility, to transform sectors such as healthcare and finance, which involve a substantial share of knowledge work.”

Another common theme highlighted throughout the inquiry was that robotics and AI could increase productivity and efficiency. One recent study estimated that ‘£1.24bn in automation investment could raise the overall value added by the manufacturing sector to the UK economy by £60.5bn over the next decade’.

Future

There are clearly many debates about the potential impact of robots and AI, but it is not yet clear what the actual impact of advances in these fields will be on the labour market.

What is clear is that there is a need for skills to be developed for a world where AI is more prevalent.

But as the inquiry highlighted, the government doesn’t yet have a strategy for developing these new skills or responding to the social and ethical issues it poses. The report therefore recommends that “the government must commit to addressing the digital skills crisis through a Digital Strategy, published without delay.”

Perhaps the future will be similar to the past, as written evidence to the inquiry suggests:

During the industrial revolution, mechanisation did not change long-run equilibrium employment because new jobs emerged which were unimaginable at that time. Similarly, jobs lost to automation today might be replaced by jobs we cannot yet imagine.


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Gender pay gap – will it ever close?

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By Heather Cameron

Last Thursday was labelled ‘Equal Pay Day’ – the last day of the year women effectively stop earning relative to men – just one day later than the previous year.

According to the Fawcett Society, this means women are in effect ‘working for free’ until the end of the year as a result of the gender pay gap.

Given that it is 46 years since the Equal Pay Act was introduced ‘to prevent discrimination, as regards terms and conditions of employment, between men and women’, it is dispiriting that considerable inequalities remain between men and women’s pay.

How much of a gap?

The Fawcett Society has calculated the current gender pay gap for full-time workers at 13.9%.

Recent research by Deloitte suggests that the gender pay gap will not close until 2069 unless action is taken to tackle it now. It shows that the hourly pay gap between men and women is closing at a rate of just 2.5 pence per annum, and in some cases is even widening.

The study also notes that men receive considerably higher average pay even in female-dominated occupations, such as teaching and caring.

And new research from New Policy Institute (NPI) found that, although things have been improving with higher employment rates and increases in earnings, the formal employment rate for women is still lower and female weekly earnings are still less than 70% of male weekly earnings.

The research also highlighted that significant barriers continue to prevent women entering the labour market, particularly when it comes to high-paid, secure, quality jobs.

The overall global situation would appear even worse as the most recent Global gender gap report from the World Economic Forum indicates that the gap could take 170 years to close.

In terms of the economic impact, the gender pay gap has been highlighted as a particular issue in relation to the UK’s low productivity problem.

It has been suggested that equalising women’s productivity could add almost £600 billion to the economy, and that 10% could be added to the size of the economy by 2030 if the millions of women who wanted to work could find suitable jobs.

Causes

The gender pay gap has been attributed to four main causes by the Fawcett Society:

  • Discrimination – often women are still paid less than men for the same job and unfair treatment remains common, especially around maternity
  • Unequal caring responsibilities – women continue to play a greater role in caring for family
  • A divided labour market – women are more likely to be in low-paid and low-skilled jobs
  • Men in the most senior roles – men continue to make up the majority of those in the highest paid and most senior roles

Deloitte’s research similarly highlights that women are disproportionately more likely to enter low paid industries or sectors.

However, it emphasises that one contributory factor to the gender pay gap occurs before labour market entry, when boys and girls decide what to study at school and in further education. Three times more boys than girls take computing and 50% more boys than girls study design and technology.

This is significant because the gap in starting salaries between men and women who have studied Science, Technology, Engineering and Mathematics (STEM) subjects, and who go on to take jobs in these sectors, was found to be far smaller.

Way forward

Deloitte’s research therefore suggests that increasing the participation of females in STEM subjects and careers could help reduce the gender pay gap.

Nevertheless, it also notes that as there are several causes, no single measure will be enough to eradicate it.

The government’s policy to introduce mandatory gender pay gap reporting for all large companies employing more than 250 employees has been welcomed as a step forward. But there are concerns this is not enough. The NPI research suggests that it could go further, with extension of the duty to companies employing 50 people.

In addition, encouraging take-up of the voluntary living wage and boosting pay in sectors that have been traditionally low paid and have predominantly employed women are suggested as ways to help speed up the reduction of the gender pay gap.

The NPI report calls for ‘a multi-dimensional policy response, sitting underneath a clear gender focused employment strategy’ to reduce gender inequalities and the subsequent pay gap.


If you enjoyed reading this, why not take a look at some of our other posts on equalities issues

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Equal to the task? Addressing racial inequality in public services

huddleCLR

Throughout October, a series of events to promote diversity and equality will take place as part of Black History Month. Although there are many achievements to celebrate, it is an unfortunate fact that many people in the UK today still experience disadvantage due to the colour of their skin.

Over the summer, reports by the Equality and Human Rights Commission (EHRC) and the UN Committee on the Elimination of Racial Discrimination (CERD), found that racial inequality in the UK was ‘worryingly high’.

In its biggest ever review of race inequality in the UK, the EHRC concluded that:

“while for certain people life has become fairer over the past five years, for others progress has stalled and for some– in particular young Black people – life on many fronts has got worse.”

Audit of racial disparities announced

The government responded quickly by announcing an audit of racial disparities in public services. It promises to ‘shine a light on injustices as never before’.

From summer 2017, Whitehall departments will be required to identify and publish information annually on outcomes for people of different backgrounds in areas such as health, education, childcare, welfare, employment, skills and criminal justice.

As well as enabling the public to check how their race affects the way they are treated by public services, the data is also intended to help force services to improve.

The audit is being called ‘unprecedented’ – and it certainly is – up until now, public services in the UK have not systematically gathered data for the purposes of racial comparison. Indeed, according to the FT, very few countries, if any at all, currently produce racial impact audits.

‘Worryingly high’ levels of racial inequality

The audit will have its work cut out.  The review by the EHRC found that, compared to their White counterparts, people from ethnic minorities were more likely to be:

  • unemployed
  • on low wages and/or in insecure employment
  • excluded from school
  • less qualified
  • living in poverty
  • living in substandard and/or overcrowded accommodation
  • experiencing mental and physical health problems
  • in the criminal justice system
  • stopped and searched by police
  • a victim of hate crime
  • a victim of homicide

Institutional racism

Similarly, the CERD findings into how well the UK is meeting its obligations under the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) raised serious concerns about the level of institutional racism in UK public services. Omar Khan, of the Runnymede Trust, suggested that the findings would ‘embarrass the UK on the world stage’.

Longstanding inequalities in access to services, the quality of care received and patients’ health outcomes were criticised, as was the over-representation of persons belonging to ethnic minorities in psychiatric institutions.

The committee echoed the EHRC’s concerns regarding higher unemployment rates and the concentration of persons belonging to ethnic minorities in insecure and low-paid work.  They also criticised the use of discriminatory recruitment practices by employers.

In education, there were concerns regarding reports of racist bullying and harassment in schools, and the lack of balanced teaching about the history of the British Empire and colonialism, particularly with regard to slavery.

The committee also concluded that there had been an outbreak of xenophobia and discrimination against ethnic minorities, particularly since the EU referendum campaign.  Indeed, the rise in post-Brexit racial tensions has been widely acknowledged.

Equal to the task?

Although the audit has been welcomed by many, including the EHRC, others have raised concern about the extent to which it will tackle the root of the problem.  Danny Dorling, of Oxford University, remains sceptical, stating that “within two or three years every single one of these audits is forgotten”.

Some have noted that in order to be effective, the audit will also have to capture outcomes for migrant families, and for poorer White people, who also suffer from discrimination and disadvantage.  Others, including Labour’s Angela Rayner, shadow equalities minister, have noted that there is a ‘huge gap’ in the review as it would not include the private sector.

The EHRC have called upon the government to createa comprehensive, coordinated and long-term strategy to achieve race equality, with stretching new targets to improve opportunities and deliver clear and measurable outcomes.”

Certainly, the data produced by the racial equality audit may well provide some basis for the establishment of such targets.

So while this October there is cause for celebrating the progress made so far, the findings of the EHRC and the CERD underline just how entrenched and far-reaching race inequality remains.  As the EHRC states:

“We must tackle this with the utmost urgency if we are to heal the divisions in our society and prevent an escalation of tensions between our communities.”


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Supporting regeneration and creative start-ups … what can we learn from Hackney?

View of Amazon HQBy Morwen Johnson

A traditional pub, standing alone in the midst of a massive development site in East London. The photo above, taken at the end of June, seems to sum up dramatic changes that are being replicated all across London as regeneration transforms many Boroughs. Social and community regeneration, however, does not inevitably follow from investment in commercial property development. And ensuring that local communities benefit, and are not displaced or excluded by processes of gentrification, can be a tough balancing act.

I recently went on a study tour within Hackney, organised as part of the RTPI Convention in June, to understand how the council’s planning and regeneration team have been working to attract investment into the area and tying this in to employment support and small business growth.

Rapid economic growth but continuing deprivation

A number of high profile major site developments are underway in Hackney, including multiple hotels and the new Amazon HQ. This has gone hand-in-hand with its emergence in the last few years as an attractive location for start-ups and entrepreneurs.

Hackney experienced a business growth rate of 40% between 2004 and 2012, 17% higher than London as a whole. The population of the Borough has also grown from approximately 265,000 in 2006 to an estimated 310,000 in 2015. A report from Tech City published last month also highlighted the importance of the key sectors of creative, technology and business services in the local economy – they make up 37% of all employment in Hackney and 54% of its 11,000 businesses.

It’s worth noting, however, that this economic success has come at a time when Hackney still has some of the highest levels of deprivation and poverty in London. For example, in 2016, 30% of nursery and primary school pupils are eligible for and claiming free school meals, rising to 33% at secondary level (London Datastore).

Vibrancy of the area at risk?

The improved perception of the area, while welcome, is pushing up property and rental prices. And now, as start-ups and small businesses risk being priced out of Hackney, it is important for the area to retain the ability to host start-ups. One solution is ‘meanwhile use’ – the temporary use of vacant buildings or sites, especially for community projects.

Hackney council has engaged with local developers and property partners to create innovative and cost-effective spaces on a temporary basis to promote local business, employment and culture.  Hackney House on Curtain Road is just one example – the building provides a café and bar area, as well as exhibition and meeting space for hire. Wi-fi and desk space is available for not-for-profit organisations and start-ups to use, and regular events encourage business networking. The project won the Best Town Centre project at the London Planning Awards in February 2016.

The council suggests that while it’s important to keep businesses in the area, the core aim should “be to keep projects innovative and exciting”. Some churn is inevitable and councils should “extend both a platform and an open mind to its current local business communities”.

Ways into work

Another example of collaboration which has delivered cost effective assets to support the local community is The Opportunity Hub on Pitfield Street. The council has been working to develop its role as a broker between the private sector and community sector to create jobs and training for local people. The Opportunity Hub sits next to a large housing estate and research showed that nearly a quarter of residents local to the Hub had never used the internet.

Previously a community centre that was only being used for two hours a week, the building has been redesigned to offer an antithesis to job centres. As well as having space for training or employer recruitment sessions, there is free hot-desking space. A team of information and guidance advisors are available and focus on getting local people ‘job-ready’. They also engage with local businesses to promote apprenticeships. Touchingly, the local group of women who used the previous centre for afternoon bingo now use the Hub space instead.

Hackney collateral

Looking to the future

It’s clear that the council in Hackney aren’t resting on their laurels. As well as continuing to use Section 106 as a tool to ensure larger businesses moving into the area will offer jobs to local unemployed people, they are planning another Opportunity Hub in the foyer of a local library. They are also looking at new ideas to provide space for temporary uses, such as the untapped potential of over 2000 empty garages in the area.

Close relationships between planning professionals, town centre managers and the business development teams appear to have helped the council to use regeneration to benefit the local community.


Read more about Hackney’s three year framework to promote enterprise and regeneration in the Tech City Best Practice report.

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Read some of our other blogs on regeneration: