Tag Archives: labour market

‘Breaking the bias’ – gender equality and the gig economy

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Yesterday marked the 111th International Women’s Day, a global day of celebration for the social, economic, cultural and political achievements of women. But it is also an opportunity to reflect on and further the push towards gender equality.

While there has been much to celebrate, it has been suggested that the pandemic threatens to reverse decades of progress made towards gender equality as women have been hit harder both socially and economically than men. However, the shift in working practices during the pandemic may help to transform the future of work to the benefit of women.

There has been continued growth in the digital platform or gig economy workforce, with many women entering this type of work because of the pandemic. The gig economy has been shown to have the potential to improve gender equality in the economy, but it is not without its challenges when it comes to gender parity, as recent research has highlighted.

A platform for gender equality?

The report from the European Institute for Gender Equality (EIGE) highlights that the growth of artificial intelligence (AI) technology and platform or gig work has the potential to create new opportunities for gender equality, but at the same time can reinforce gender stereotypes, sexism and discrimination in the labour market. It found that some of the key attractions of gig work such as its flexibility, are often disadvantageous to women.

The EIGE surveyed almost 5000 workers in the platform economy across 10 countries to understand who they are, why they do platform work, and what challenges they face.  It found that:

  • a higher share of women (45%) than men (40%) among regular platform workers indicated that they worked on digital labour platforms because they were a good way to earn (additional) income;
  • flexibility, expressed as the ability to choose working hours and location, motivated about 43% of women and 35% of men;
  • a higher share of women (36%) than men (28%) said they do platform work because they can combine it with household chores and family commitments;
  • 36% of women started or restarted platform work because of the pandemic, compared to 35% of men.

The flexibility of platform work has consistently been referred to as the main motivating factor for engaging in such work. And this flexibility has been found to be more important for women, particularly in relation to family commitments. In practice, however, the research shows that flexibility is limited, with as many as 36% of women and 40% of men working at night or at the weekend, and many working hours they cannot choose.

On the plus side of the gender equality debate, it seems the gig economy is slightly less gender-segregated than the traditional labour market, with a higher share of men doing jobs usually done by women. For example, traditionally female-dominated sectors such as housekeeping and childcare are more gender-diverse in the gig economy:

  • housework (women: 54%, men: 46%)
  • childcare (women: 61%, men: 39%)
  • data entry (women: 47%, men: 53%)

But the EIGE’s survey also suggests a degree of skills mismatch and overqualification in platform work that affects women in particular. It suggests that highly educated women are more likely to do jobs that do not match their level of education, putting them at greater risk of losing their skills.

Gender bias in AI

The report also shines a light on the issue of gender bias in AI which can be a particular issue in the gig economy where such systems are frequently used.

It argues that gender bias can be embedded in AI by design, reflecting societal norms or the personal biases of those who design the systems. For example, the use of algorithms that are trained with biased data sets perpetuate historically discriminatory hiring practices which can lead to female candidates being discarded.

Platform workers can also be monitored using time-tracking software, which deducts ‘low productivity time’ from pay, increasing ‘digital wage theft’, to which women are more vulnerable.

Considering just 16% of AI professionals in the EU and UK are women – a percentage which decreases with career progression – this is something that needs to be addressed if gender parity in the gig economy, and indeed the entire modern economy, is to be achieved.

Way forward

The EIGE report welcomes new proposed EU legislation to improve the working conditions of platform workers and the EU’s proposed ‘Artificial Intelligence Act’, suggesting this shows promise when it comes to minimising the risk of bias and discrimination in AI. Also highlighted as a positive sign, is the EU’s commitment to train more specialists in AI, especially women and people from diverse backgrounds.

Nevertheless, one of the conclusions of the report is that regulations and policy discussions on platform work are largely gender blind and that action is required on multiple levels to address gender inequalities and discrimination in the gig economy.

To this end, the report recommends that the EU needs to do the following:

  • mainstream gender into the policy framework on AI-related transformation of the labour market;
  • increase the number of women in, and the diversity of, the AI workforce;
  • address the legal uncertainty in the employment status of platform workers to combat disguised employment;
  • address gender inequalities in platform work;
  • ensure that women and men platform workers can access social protection.

There are lessons here for the UK too. Perhaps the fulfilling of these actions will go some way to improving the situation by the time we get to the next International Women’s Day.

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Fair and flexible labour market: building back better

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Much has been reported on the recovery from the pandemic and how things can be ‘built back better’ but what about those groups that have been disproportionately affected?

Recent research has highlighted the unequal impacts the pandemic has had on particular groups within the labour market.  From the lowest paid to part-time workers and women, research has considered how things could be moved forward so that those that have borne the brunt of the economic impact are not left behind. In this blog, we take a look at some of these publications, each of which highlights the need to create a fairer and more flexible labour market.

Low paid workers: new settlement needed

The Resolution Foundation’s latest annual Low pay Britain report has warned that the low paid are at greatest risk of becoming unemployed once the furlough scheme ends in September.

Despite the positive backdrop for low paid workers in the run up to the crisis with a fast rising minimum wage following the introduction of the National Living Wage (NLW) in 2016 – which has driven the first sustained fall in low pay for 40 years – the Covid-19 crisis has adversely affected the low paid to a much greater degree than the higher paid. The research showed that workers ranked in the bottom fifth for pay were three times more likely to have lost jobs, hours or have been furloughed than the top paid fifth. Low paid workers are also more likely to work in the sectors most impacted by the pandemic – hospitality, leisure and retail.

As the economy reopens, however, so too do the sectors most restricted over the past year which improves the prospects for low paid workers. Indeed, they are now returning to work fastest. In April alone, almost a million workers came off furlough – more than half of them employees in hospitality, leisure or retail.

But while the report highlights the positive prospects for the low paid, it also addresses several key issues that policy makers will need to consider if the low paid are to benefit from the recovery. Major risks for the low paid are identified:

  • higher unemployment
  • decreasing job security
  • infringements of labour market rights

It argues that low paid workers’ relative unemployment risk after the pandemic is likely to be particularly high given the possibility of structural change concentrated on low paying sectors. And if unemployment rises, it is noted that job quality and infringements of labour market rights are likely to deteriorate.

The Resolution Foundation calls for a new settlement for low paid workers, arguing that “policy makers must look beyond the minimum wage – to job security and labour market regulation – for ways to ensure it’s a recovery that benefits low paid workers”.

Part-time employees: must be included in the recovery

As we move towards the end of restrictions and of the furlough scheme, cracks have also started to emerge for part-time workers, who have been “clinging on in a volatile labour market” according to recent analysis by the Timewise Foundation.

This report notes that part-time employees are one demographic that hasn’t had the same level of scrutiny in the literature as other disproportionality affected groups.

The experience and outlook for part-time employees appears “particularly bleak” according to the report. Despite the furlough scheme being effective in protecting millions from unemployment, it is argued that it is actually masking significant challenges – most notably for part-time workers. The disproportionate impact on part-timers has seen them face higher levels of reduced hours and redundancy. They are also less likely than full-timers to return to normal hours and to hang on to roles during lockdowns.

Evidence shows 44% of part-time employees who were away from work during the first lockdown continued to be away from work between July and September 2020, when restrictions began to temporarily ease. This compares to 33.6% of full-time employees.

The majority (80%) of part-time workers also do not want to work more hours but as Timewise data shows, only 8% of jobs are advertised as part-time – “simply too big a problem to ignore”.

In response to the analysis, a vision for change is set out, focusing on creating a fair and flexible labour market that will:

  • support those in everyday jobs to access flexibility
  • help the millions of people who want or need to work flexibly to find flexible opportunities
  • remove some of the barriers to support those trapped in low-paid work and unable to progress

Women: promoting a gendered recovery

Women have also been disproportionately affected in the labour market, particularly as they are often employed in low-paid and part-time jobs within shutdown sectors such as hospitality and retail, which are notoriously characterised by job insecurity.

This was highlighted in a recent briefing paper by Close the Gap and Engender which looked at the impacts of Covid-19 on women’s wellbeing, mental health, and financial security in Scotland. The paper confirms pre-existing evidence that women have been particularly affected by rising financial precarity and anxiety as a result.

The closure of schools and nurseries and increased childcare disproportionately affected women’s employment and women’s propensity to work part-time places them at greater risk of job disruption. The data shows that young women and disabled women are being particularly impacted by the pandemic.

Key findings include that women are more likely than men to be receiving less support from their employer since the first lockdown, and were significantly more likely than men to report increased financial precarity as a result of the crisis – this was particularly the case for young women and disabled women. Timewise points to the potential for this to add to a growing child poverty crisis.

Similarly to the above reports, which call for the specific affected groups to be included in any future employment strategy, this report concludes by highlighting the importance of a gender-sensitive approach to rebuilding the labour market and economy.

Final thoughts

While furlough has undoubtedly protected many within those groups who have been disproportionately affected by the pandemic, this is only temporary and as all three reports above suggest, these groups are at greatest risk of unemployment and job insecurity when the scheme finally ends.

The research clearly calls for a fairer and more flexible labour market with stronger and better rights for all workers. Failure to address this in the attempt to build back better will only serve to increase the inequalities that already exist in the labour market.

The reports highlighted in this blog post have recently been added to The Knowledge Exchange (TKE) database. Subscribers to TKE information service have direct access to all of the abstracts on our database, with most also providing the full text of journal articles and reports. To find out more about our services, please visit our website: https://www.theknowledgeexchange.co.uk/

Further reading on employment issues from The Knowledge Exchange Blog:

Virtual knowledge: recent webinars on public and social policy

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Earlier in the summer, we shared some of the information our Research Officers had picked up while joining webinars on public and social policy.

Since then, we’ve taken part in more of these virtual seminars, and in today’s blog we’re providing an overview of the wide range of topics covered.

Low traffic neighbourhoods

Earlier this month, Project Centre, which specialises in public realm regeneration and sustainability, organised a webinar on the challenges of implementing Low Traffic Neighbourhoods.

Low Traffic Neighbourhoods (LTNs) are a group of residential streets where through traffic is removed or discouraged, and any remaining traffic must operate at a pedestrian pace. The focus is not only to reduce congestion and improve safety by getting traffic back onto main arterial road networks, but also to provide environmental benefits, improve public health, community cohesion and encourage people to spend more, quality time in the areas where they live by making places “liveable”.

This webinar looked at the design and implementation of Low Traffic Neighbourhoods, with guest speakers from two local authority areas (Waltham Forest and the Liverpool City Region), as well as designers from Project Centre who support the implementation of Low Traffic Neighbourhood Schemes. The speakers discussed their own experiences designing and implementing low traffic neighbourhoods and shared potential lessons for those looking to implement their own scheme.

The speakers all emphasised some key elements to effective design and implementation of LTNs they included:

  • LTNs are not just about transport, they can have health and wellbeing, community cohesion and crime reduction and economic impacts for local businesses as people are encouraged and enabled to shop more safely in their local areas.
  • schemes should be done with communities, not to them
  • LTNs should be designed with everyone in mind to bring pedestrians and cyclists “on par” with cars in terms of the use of street space
  • effective data and evaluation can help build a case for wider roll outs.

The new long life: a framework for flourishing in a changing world

This webinar was delivered by the International Longevity Centre (ILC) and included a number of speakers from a range of backgrounds who came together to discuss the impact of longevity and ageing on our engagement with work and the labour market, particularly in relation to digital technology and the changing nature of work post COVID-19. Speakers included Prof. Andrew Scott, Caroline Waters, Jodi Starkman, Stefan Stern, Lily Parsey and George MacGinnis.

Many of the speakers highlighted the difference between the ageing agenda and the longevity agenda, explaining that while many of us will live and work for longer than ever before, the nature of work and the stages of life are changing in a way that for many will be unrecognisable as the “traditional life journey”.

They stressed the need to move away from “traditional linear thinking” about how we age, with education at the start, mid-life being punctuated by work and potentially parenthood, then retirement, and that ageing in the future will be full of more “life stages” and more mini cycles where career breaks, learning and other life “punctuations” will take place at different times of life. It was suggested that the nature of work will change so much that re-learning and at times re-training will be a necessity at multiple points in life, and not just by those who change career deliberately.

Ageing well must, according to speakers, remain high on the policy agenda of future governments to ensure that the growing population of older people can live lives that are enjoyable, purposeful and productive and can contribute to wider society well into what would currently be considered “old age”.

Clearing the air

This has been a year like no other. But while attention has rightly focused on the number of Covid-19 fatalities – more than 800,000 worldwide – there is another hidden killer which has been responsible for more deaths than coronavirus, HIV and malaria combined. Research has found that air pollution caused an extra 8.8 million deaths around the world in 2015.

We’ve written before about efforts to improve air quality, and in July a webinar organised by Catapult Connected Places looked at further innovative ways to understand and tackle air pollution across the globe.

Eloise Marais,  an Associate Professor in Physical Geography at UCL talked about TRACE – the Tool for Recording and Assessing the City Environment – that she is developing using satellite observations of atmospheric composition. Satellites offer more complete and consistent coverage than surface monitors, and satellites can also monitor many air pollutants, such as sulphur dioxide, ozone, nitrogen oxides and fine particulate matter.

But while satellites have a long and well sustained record of recording data – some have been in space for more than a decade – their measurements have limitations in terms of spatial resolution. At the moment, these can only cover city-wide air quality, rather than providing postal code measurements. Eloise explained that, while satellite data has been used to show that air quality improvement policies have been effective in London as a whole, they cannot yet confirm that in some parts of the city pollution levels are not falling. Even so, Eloise noted that spatial resolution is improving.

Later in the webinar, Bob Burgoyne, Market Intelligence Team Lead at Connected Places Catapult talked about the Innovating for Clean Air India Programme. India is home to 14 of the world’s most polluted cities. One of these, the city of Bangalore is especially badly affected, and Bob described a project which aims to improve the city’s air quality and enable a transition to electric vehicles. The Catapult network has been working with academic and professional bodies, and with small and medium sized enterprises in India to measure and demonstrate the impact of pedestrianizing a major street in Bangalore on Sundays. The long term goal is to permanently pedestrianise the street, and to demonstrate active and electric mobility solutions.

Back on track: London’s transport recovery

This webinar, organised by the Centre for London, discussed the impact of the Coronavirus pandemic on London’s transport systems and explored the impact of changes to Londoners’ travel habits on the actions required for recovery.

The event included contributions from Rob Whitehead, Director of Strategic Projects at Centre for London, Cllr Sophie McGeevor, Cabinet Member for Environment and Transport at London Borough of Lewisham, and Shashi Verma, Chief Technology Officer and Director of Strategy at Transport for London.

A major concern raised by speakers was that current trends indicate that car usage is returning to normal levels faster than any other form of transport. Public transport, such as bus and tube, is slowly recovering but its usage is often linked to changes to lockdown restrictions, with surges in use as restrictions are lifted that very quickly level off. Additionally, although it appears that active transport use has increased, this increase tends to be at weekends and is more apparent in outer London.

As a result of these trends, there is a serious concern that levels of traffic in London may exceed the levels experienced prior to the lockdown. Currently, road traffic is at roughly 90% of normal levels, if this rises to 110%, the resulting congestion will result in gridlock and could have major implications for London’s economy.

How should we use grey literature?

This webinar was organised by the CILIP Health Libraries Group, for CILIP members to learn about and discuss how grey literature is used by libraries, and the benefits and challenges of making use of such content.

The main talk was delivered by two members of the library team from the King’s Fund – Deena Maggs and Kathy Johnson – who emphasised the importance of grey literature as a means of delivering timely and up to date information to users, particularly in the context of health and social care policy, where information needs tend to be very immediate.

The session involved discussions about the usefulness of grey literature in terms of Covid-19 recovery planning, as well as the challenge of determining the credibility of content which is not peer reviewed or commercially published.

The speakers gave practical advice around selecting and evaluating such sources, and highlighted the broadening range of ‘grey’ content that libraries can make use of, such as audio recordings, blog posts, and Tweets.

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Finding answers to the teacher supply challenge

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Earlier this year, the NFER published its first annual report on the state of the teacher workforce.

Among its key findings were that “the secondary school system is facing a substantial teacher supply challenge over the next decade, which requires urgent action.”

Unfortunately, this ‘teacher supply challenge’ – also referred to as the ‘teacher recruitment crisis’ – is not a new development.  Back in 2017, the House of Commons Education Select Committee published a report on the recruitment and retention of teachers in England which concluded that the government was failing to take “adequate” action to tackle what it describes as “significant” teacher shortages in England.

In this blog, we will provide a brief overview of the extent of teacher shortages, as well as outlining the key ways in which the government’s teacher recruitment and retention strategy seeks to address them.

 

Teacher numbers have fallen since 2010

The Department for Education (DfE) forecasts that secondary schools will need 15,000 more teachers between 2018 and 2025 to meet a 15% increase in pupil numbers.

However, despite this, teacher numbers have been falling.

This is due in part to increasing numbers of both primary and secondary teachers leaving the state sector – particularly those in the early stages of their career.  Indeed, the retention rates of early-career teachers (between 2-5 years into their careers) fell significantly between 2012 and 2018.

In addition, targets for the required number of secondary teacher trainees have been missed for six years in a row – resulting in insufficient numbers of new teachers entering the secondary sector.

These factors have led to an overall decline in the number of secondary teachers, and a doubling of secondary post vacancies, since 2010.

The secondary teacher shortage has been particularly acute in certain subjects, such as maths, science and languages.  For example, recruitment to teacher training in physics in 2018/19 was more than 50% below the numbers required to maintain supply.

In addition to this, earlier this year, a poll by the National Education Union found that nearly 1 in 5 (18%) teachers expect to leave the classroom in less than two years, and nearly two-fifths want to quit in the next five years.

 

Making teaching ‘attractive, sustainable and rewarding’

The stats paint a bleak picture.  The government’s response has been to publish their first ‘Teacher recruitment and retention strategy’.

This strategy aims to make sure that careers in teaching are “attractive, sustainable and rewarding” by addressing some of the key issues within the profession that have hindered both recruitment and retention.

The strategy focuses on four key priorities:

  • Creating more supportive school cultures and a reduced workload
  • Transforming support for early career teachers
  • Expanding flexible working and career progression opportunities
  • Simplifying the process of becoming a teacher and encouraging more people to try it out

Central to the new strategy is the launch of the ‘Early Career Framework’ – a funded two-year support package for all new teachers.  The Early Career Framework aims to address the high numbers of new teachers leaving the profession by providing them with additional support, including mentoring, training programmes, free curriculum and training materials, and a reduced timetable to enable them to focus on their training.

There have also been a range of additional initiatives put in place to encourage the recruitment and retention of teachers.

As well as plans to increase salaries, teacher trainees can now access bursaries – with the level of bursary granted varying depending on the subject and the degree class of the teacher trainee applicant.  For example, trainees with a first class degree in physics are eligible for £28,000.

There has also been a pilot of ‘early career payments’  where trainees in mathematics receive £5,000 each in their third and fifth year of teaching.  This payment will be increased to £7,500 for teachers in the most challenging schools in specific areas.

 

Retraining opportunities for later life career changers

As well as financial incentives for trainee teachers, the government has also pledged £10 million to encourage business leaders, boardroom executives and high-flying graduates to take up teaching.

The charity Now Teach is one of three organisations that will benefit from this funding.

Now Teach encourages people who already have successful careers to retrain as maths, science and modern foreign languages teachers.  It was set up in 2016 by journalist Lucy Kellaway, who – after over 30 years at the Financial Times – has since qualified as a teacher herself.  Through the Now Teach programme, experienced professionals can achieve Qualified Teacher Status (QTS) either through a school or university-based route.  It has so far encouraged over 120 professionals to retrain as teachers – including a former Nasa scientist, an investment banker and a corporate lawyer.

As well as working to recruit new trainees, Now Teach also aims to support their retention – noting that older trainees are generally more likely to drop out of teacher than their younger counterparts.  Now Teach also works towards improving part-time and flexible working options within schools.

 

Unmet demand for flexible working

Indeed, support for flexible working is another key aspect of the government’s teacher recruitment and retention strategy.

At present, far fewer teachers work flexibly than the workforce as a whole – only 17% of secondary school teachers work part-time, compared with 27% of workers nationally.  The gap is even more pronounced when you consider that teaching is a female-dominated profession – 42% of women nationally work part-time.

A recent NFER research paper found that there is unmet demand for part-time working, particularly in secondary schools.  They found that, as well as helping to improve teacher recruitment and retention, increased levels of part-time work within schools may also help to improve staff wellbeing.

The government has made a number of commitments to promote flexible working within schools, including plans to update its guidance on flexible working and to promote flexible working opportunities via its new Teacher Vacancy Service.

 

“It’s not the answer, but it’s an answer.” 

While improving flexible working opportunities and encouraging later life career changes may not in themselves be sufficient to address the wider teacher supply crisis, they are important as part of the government’s wider drive to encourage more people into the teaching profession.  As Lucy Kellaway observes: “It’s not the answer, but it’s an answer.”

Addressing the poor status and perception of the teaching profession, by improving key factors such as salary, workload and work-life balance, is undoubtedly key to encouraging more people to enter and remain in the profession.

It will be interesting to see whether and how the various initiatives set out within the government’s Teacher Recruitment and Retention Strategy impact upon recruitment and retention levels over the next few years.

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Teaching offenders to code: supporting digital skills and reducing reoffending among those leaving prison

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Breaking the cycle of reoffending by teaching prisoners to code

In the UK, we have one of the highest numbers of adults in prison in western Europe, and of those who have been in prison, almost half will re-offend within a year of release. Reoffending in the UK is estimated to cost as much as £15bn each year. One of the major factors in reducing reoffending is finding and sustaining employment upon leaving prison, however, it has been suggested that the skills and training that offenders receive while in prison only prepares them in a limited way for life “on the outside”.

The importance of digital literacy and the disadvantage caused by a digital skills deficit

Whether it is applying for benefit payments, booking a doctor’s appointment, online shopping, paying council tax or word processing and data navigation in a wide range of today’s job roles, having a basic understanding of digital literacy is important. For many people these skills are acquired over time, sometimes even by accident as we come into contact with more and more digital services in our day to day lives, including in many of today’s jobs where word processing and email skills seem to be a given.

However, for people leaving prison, perhaps who have been away from the fast pace of digital development for a few years, the leaps and bounds in terms of technological change and how we use digital platforms for a range of tasks can be a daunting prospect. While there is some exposure to digital platforms inside prisons, there are increasing calls to ensure that in order to better reintegrate into society on release from prison, digital skills should be higher up the agenda for those prisoners being prepared for release.

Linking digital skill programmes to labour market need

While we raise concerns about digital literacy, it is also widely reported that the UK is facing a digital skills deficit, with job roles going unfilled because there are not enough skilled individuals to fill them. Why not then, supporters argue, align the two policies to meet a need within the skills market and better support offenders to be able to live a full, digitally literate life on their release from prison.

In his Ted talk on teaching coding in prisons, Michael Taylor highlights some of, what he sees as, the key issues with the current skills and training programme in prisons: it is mundane and repetitive, and it is not linked to skills or labour market need. Coding, he argues, in addition to being accessible, cheap to teach and not requiring any pre-requisite qualifications, is an easy way that prisoners can be equipped with high-level digital skills to help them find employment, and teach skills that employers want and need to employ.

He also argues that coding is a way to equip offenders with the basic tools to go into a range of careers or further training across a range of occupations, in a range of sectors doing a wide range of different jobs – giving the variety and scope for development that many offenders simply don’t get from current skills and training programmes. The benefits, he argues, go beyond just teaching the ins and outs of how to code, with digital skills having wider applicability around managing information, communicating, transacting, problem solving and creating as well as raising confidence and self esteem.

Learning from digital skill programmes in prisons elsewhere

The Last Mile programme in California is being used as a model to create a UK based coding programme for prisoners. The programme teaches digital skills, specifically coding, to allow offenders to find employment once they leave prison. The American programme is based out of San Quentin prison and has consistently shown positive outcomes for participants, with a recidivism rate for participants dropping from over 70% to 0 in the latest cohort of “graduates”. These positive and tangible outcomes are one of the reasons supporters have been so keen to roll out a similar scheme in the UK.

The UK Government has acknowledged this evidence and in March 2019 the Department for Digital, Culture, Media and Sport announced it is investing in two pilot schemes, one at HMP Humber and one at HMP Holme House which will see a selection of “carefully vetted prisoners” participate in new digital skills programmes. Prisoners will learn CSS, HTML and JavaScript before moving on to more advanced coding techniques. They will then be invited to work for partner companies, eventually on day release, with a view to better preparing them for work when they are released from prison, while also helping employers manage perceived risks that come with hiring former offenders.

Final thoughts

Offenders leaving prison face a number of barriers to successful reintegration into the community, and preparing them fully to meet all of these challenges can be a difficult task in itself. However, by better equipping offenders with digital skills we will enable them to leave prison with knowledge employers are looking for. Coding programmes could be one route to developing skills for prisoners due for release which can help them adapt to life outside prison, give them purpose and options and, it is hoped, reduce the likelihood of reoffending in the future.

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Beneath the headlines: record high employment rate, but what’s more important – quantity or quality?

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Competition for new jobs

The UK employment rate has hit a joint record high of 76.1%, according to the latest official figures. The unemployment rate was estimated at 3.8%; it has not been lower since 1974. The economic inactivity rate was also close to a record low.

It’s not surprising that such record figures are often highlighted as ‘good news’ headlines. However, there has also been an increasing focus on quality of work over the past decade and the impact this has on people’s lives – reflecting concerns regarding developments in working practices, as highlighted by a recent City-REDI briefing paper. It has therefore been argued that the record employment rates are not necessarily representative of a ‘good news’ story.

Concerns

Concerns over working practices include the rise of the gig economy, unequal gains from flexible working, job insecurity and wage stagnation, to name but a few. The City-REDI paper outlines a number of ongoing concerns related to:

  • weak productivity growth;
  • employment insecurity and precarity;
  • in-work poverty;
  • skills shortages and skills polarisation; and
  • the impact of automation, technological change and the gig economy on the nature and experience of work.

Indeed, analysis has shown that much of the recent rise in employment is due to a ‘surge in low-value work’, which is holding back productivity growth. Many people are stuck in low paid insecure work, all of whom are contributing to the high employment rate.

Recent research from the Joseph Rowntree Foundation has reported that four million workers live in poverty, a rise of over half a million over five years – meaning in-work poverty has been rising even faster than employment. The causes of this increase include poorly paid jobs – particularly under temporary and part-time contracts – and a lack of progression routes for people in low-skilled work.

In addition, the rising gig economy shows no signs of slowing down, more than doubling in size over the past three years and now accounting for 4.7 million workers, according to a new report. An interesting finding of the report is that the majority of gig economy workers use this platform to supplement other forms of income, suggesting that workers are not getting enough of an income from their primary employment.

It has also been shown that advances in technology have pushed some workers into poorer quality jobs than those lost, something which cannot be addressed without some kind of policy intervention.

Health impact

Not only is poor quality work bad for the economy, it is also bad for people’s health.

A recent report which examined the impact on social inequalities of policy initiatives and reforms to extend working lives in five European countries, highlighted that working conditions are also known to influence post-retirement health, and for those with lower socioeconomic status, workplace arrangements may be causing or contributing to poor health.

A number of studies have highlighted the link between good work and health and wellbeing. As stated by a What Works for Wellbeing briefing paper, “Being in a job is good for wellbeing. Being in a ‘high quality’ job is even better for us.” It has also even been suggested that being in a poor quality job is actually worse for health and wellbeing than remaining unemployed.

Moves towards improving quality

Recent developments in the UK to address such challenges for the future and quality of work include:

  • the establishment of The Work Foundation’s Commission on Good Work in 2016, which aims to better understand the factors shaping change, and the nature and scale of opportunities and risks, so as to promote policies to achieve ‘good work’;
  • The commissioning and publication of the independent Taylor Review of Modern Working Practices in 2017 which called for policy to address the wider issue of creating quality jobs for all; and
  • the Government’s Good Work Plan, published in December 2018, which sets out the reforms planned to help improve quality of work – the first time the UK Government placed equal emphasis on the quality and quantity of work.

In addition, the Chartered Institute of Personnel and Development (CIPD) launched the UK Working Lives survey, the first robust measurement of job quality in the UK. This has since contributed to government thinking and recommendations around ‘good work’ in response to the Taylor Review.

Despite the widespread agreement over the need to adopt ‘good work’ principles, however, there remains no agreed set of indicators of exactly what it encompasses nor metrics for measuring progress towards it.

What is good work?

As the City-REDI briefing paper and other studies indicate, defining good quality work is complex as quality means different things to different people.

A range of factors contribute to different people’s perception of quality and fulfilling work, including pay, flexibility, security, health and wellbeing, nature of work and job design. The CIPD survey highlights seven dimensions of job quality:

  • pay and benefits
  • employment contacts
  • job design and nature of work
  • work-life balance
  • work relationships
  • voice and representation
  • health and wellbeing

Of course, there is no one size fits all solution.

Final thoughts

While productivity and employment rates undoubtedly remain important, they alone are clearly not enough to understand the health of the labour market; the quality of work also needs to be considered.

As shown by the visible shift from quantity to quality of work in recent years and the recent developments from the government and others, ‘good work’ is undeniably on the policy agenda. However, as the City-REDI paper suggests, there should be a focus on promoting ‘good work’ amongst the most disadvantaged groups such as the young, people with disabilities and those working in hotels and restaurants. It is also suggested that there is scope for further research on good practice in promoting ‘good work’ in establishments of different sizes and in different sectors.

As highlighted in the Taylor Review, “All work should be fair and decent with realistic scope for development and fulfilment.”

You may also be interested in some of our previous employment-related posts:

Follow us on Twitter to see what developments in public and social policy are interesting our research team. 

Reeling in the year: a look back at 2018

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It’s been another busy year for The Knowledge Exchange Blog. We’ve covered a variety of subjects, from housing and the environment to education and planning. So as the year draws to a close, now’s a good time to reflect on some of the subjects we’ve been blogging about during 2018.

Bibliotheraphy, walkability and family learning

We started the year with health and wellbeing in mind. Our first blog post of 2018 highlighted the increasing application of “bibliotherapy”:

“The Reading Agency’s Books on Prescription scheme has been running nationally in England since 2013 and since it started has been expanded to cover Books on Prescription for common mental health conditions, Books on Prescription for dementia, Reading Well for young people and Reading Well for long term conditions. 635,000 people are estimated to have benefited from the schemes.”

In February, we blogged about family learning, where parents engage in learning activities with their children. This can involve organised programmes such as Booksmart, but activities such as reading to children or singing with them can also be described as family learning:

“Research from the National Literacy Trust, suggests that “parental involvement in their child’s reading has been found to be the most important determinant of language and emergent literacy”.

In recent years, growing numbers of cities and towns have introduced “shared spaces”, where pedestrians, cyclists and drivers share the same, deregulated space. As we reported in March, the practice has proved divisive, with supporters claiming that shared spaces can improve the urban environment, revitalise town centres, and reduce congestion, while opponents believe that shared space schemes – particularly the removal of kerbs and crossings – are dangerous and exclusionary for vulnerable groups of pedestrians, people with disabilities and those with reduced mobility.

In April, we took the opportunity to promote the Idox Information Service, highlighting a selection of the hundreds of items added to our database since the beginning of 2018. All members of the Idox Information Service have access to the Idox database, which contains thousands of reports and journal articles on public and social policy.

Voters, apprentices and city trees

Local elections in May prompted us to blog about the voting rights of those with age related degenerative mental conditions such as dementia and Alzheimer’s.

“Many people with dementia still hold strong political feelings, and know their own opinion when it comes to voting for political parties or in a referendum. However, the process of voting can often present them with specific challenges. It is up to local authority teams and their election partners to make the process as transparent and easy for people with dementia and Alzheimer’s as possible. Specific challenges include not spoiling the ballot, and the ability to write/ see the ballot paper and process the information quickly enough.”

A year after the launch of the government’s Apprenticeship Levy in June, we highlighted a report from the Reform think tank which suggested that significant reforms were needed to improve England’s apprenticeship system. Among the recommended changes were a renewed focus on quality over quantity, removal of the 10% employer co-investment requirement and making Ofqual the sole quality assurance body for maintaining apprenticeship standards.

The shortage of affordable housing continues to exercise the minds of policy makers, and in July we blogged about its impact on the private rented sector:

“In many cases people view the private rented sector as being a stop gap for those not able to get social housing, and not able to afford a deposit for a mortgage. Although in many instances they may be right, the demographic of those renting privately now is changing, and becoming more and more varied year on year, with many young professionals and families with children now renting privately.”

The long, hot summer of 2018 was one to remember, but its effect on air quality in urban areas underlined the need to combat the pollution in our air. In August, we blogged about an innovation that could help to clear the air:

“Designed by a German startup, a City Tree is a “living wall” of irrigated mosses with the pollution-absorbing power of almost 300 trees. A rainwater-collection unit is built into the City Tree, as well as a nutrient tank and irrigation system, allowing the assembly to water itself.”

Planning, polarisation and liveable cities

September saw another highly successful Scottish Planning and Environmental Law conference. It opened with a thought-provoking presentation by Greg Lloyd, professor Emeritus at Ulster University, and visiting professor at Wageningen University in the Netherlands, who challenged delegates to consider what might happen if the current planning system were to be abolished altogether, to clear the way for a new and more fit-for-purpose planning system.

In October, we focused on the ever-increasing job polarisation affecting the labour market:

In the EU, data shows that between 2002-2014 medium skilled routine jobs declined by 8.9%, whilst high skilled roles rose by 5.4%, and low skilled jobs grew marginally (0.1%). As a consequence, wage inequalities have grown.”

More than half the world’s population now lives in urban areas, presenting significant challenges to local authorities who have to try and make their cities work for everyone. In November, we reported from The Liveable City conference in Edinburgh, which showcased ideas from the UK and Denmark on how to make cities more attractive for residents and visitors:

“A great example of the reinvention of a post-industrial area came from Ian Manson, Chief Executive of Clyde Gateway, Scotland’s biggest and most ambitious regeneration programme. When it comes to recovering from the demise of old industries, the East End of Glasgow has seen many false dawns. As Ian explained, when Clyde Gateway was launched ten years ago, the local community were sceptical about the programme’s ambitions. But they were also ready to engage with the project. A decade on, the area has undergone significant physical generation, but more importantly this has taken place in partnership with the local people.”

Although much has been made of the government’s claim that austerity is coming to an end, many local authorities are still struggling to provide services within tight financial constraints. One of our final blogs this year reported on local councils that are selling their assets to generate revenue:

“In a bid to increase affordable housing supply, for example, Leicester City Council has sold council land worth more than £5m for less than £10 as part of deals with housing associations.”

Brexit means….

Overshadowing much of public policy in 2018 has been the UK’s decision to leave the European Union. Our blog posts have reflected the uncertainties posed by Brexit with regard to science and technology, local authority funding and academic research.

As we enter 2019, those uncertainties remain, and what actually happens is still impossible to predict. As always, we’ll continue to blog about public policy and practice, and try to make sense of the important issues, based on evidence, facts and research.

To all our readers, a very happy Christmas, and our best wishes for a peaceful and prosperous new year.

Do we really need a middle class? How the UK Government should respond to the challenge of job polarisation

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Women sitting at her desk doing paperwork

By Steven McGinty

At the beginning of the year, former government advisor and HR expert Kevin Green gave a TEDx talk entitled “Why our jobs matter now more than ever before”.

In his talk, he explains that technologies such as artificial intelligence have transformed the labour market and, unlike previous industrial revolutions, old jobs are not necessarily being replaced by better forms of work.

Instead, he warns, the economy is experiencing ever-increasing ‘job polarisation’. In this labour market, highly skilled, in-demand workers benefit from higher wages and flexible working conditions, whilst middle-income earners are finding their jobs disappear, and competition grows for low skilled, often manual work.

What does the research say about this phenomenon?

In 2017, the OECD published the report ‘Future of Skills and Work’, which highlighted that labour markets are polarising within some G20 countries. In the EU, data shows that between 2002-2014 medium skilled routine jobs declined by 8.9%, whilst high skilled roles rose by 5.4%, and low skilled jobs grew marginally (0.1%).

As a consequence, wage inequalities have grown. In particular, the report found that countries experiencing skills shortages are paying higher rates for staff with desirable skills and that greater competition for low skilled jobs is holding down wages for the bottom half of earners.

Greater regional inequalities are also noted as a possibility, as employers are likely to locate in areas with a high concentration of high-skilled workers – which are often very different to the areas experiencing job losses.

However, the report does suggest that some groups may benefit. For example, it highlights that disadvantaged millennials, who have grown up with technology, may have an advantage over older, less tech-savvy workers.

Is technology the only factor leading to job polarisation?

Economist Andrea Salvatori has conducted extensive research and argues that job polarisation in the UK is far more complex. In a 2015 paper for the Institute of Labour Economics, he argued that although technology is a factor, the growth in high skilled jobs can be explained by the increase in the number of graduates since the 1990s.  Similarly, in a 2016 paper, he found that routine employment did not decline in organisations which had adopted technology and that workplaces which specialise in high skilled employment had grown dramatically, from 30% to almost 50% between 1998 and 2011.

One theory highlighted is that of MIT scholar David Autor, who suggests that while technology might be replacing workers in certain tasks, it’s also complementing them in other areas which are more cognitive and difficult to automate.

In addition, Professor Maarten Goos has suggested that offshoring and the global competition for labour has been a factor. In his view, companies have taken advantage of lower wages in foreign countries, particularly in middle earning jobs such as back-office administrative functions and in customer service positions. Highly skilled jobs have been less affected as the supply of skills is less readily available.

What are the social consequences of job polarisation?

Mr Green’s Tedx Talk is less about the economics of job polarisation, and more about the social issues which may stem from this divided economy. He recounts his own experience, describing himself as a ‘late bloomer,’ and recounting his journey from an administrative middle-class job in Wandsworth council to gaining promotion through further study.

For him, the real concern is that the chasm between low and high skilled jobs means that it will be increasingly difficult for some groups in society to progress in their careers. In particular, he highlights graduates looking for their first positions, as well as mothers returning to the labour market after a period out to raise children.

Research has also shown that increased job polarisation might be leading to discontent amongst low skilled workers, and that this could partially explain recent political divisions between those living in large metropolitan cities and those in left behind regions.

So, how should the UK Government respond?

Academics Dr David Hope and Dr Angelo Martelli recently investigated the role labour market institutions play in tackling wage inequality in modern economies. By analysing the economic data for 18 OECD countries from 1970 to 2007, they attempted to prove that national labour market systems could protect wages. They found that:

“strong labour market institutions, in the form of coordinated wage setting, employment protection legislation, and high wage bargaining coverage, reduces the effect of the expansion of employment in knowledge-intensive services on income inequality.”

In addition, the Joseph Rowntree Foundation argues that there is a need to tackle inequality locally by focusing on the bottom of the labour market, particularly by improving working conditions for low-skilled workers.

Mr Green takes a similar viewpoint, and argues the solution is a ‘revolution in lifelong learning’. This means creating labour market institutions that help people trapped in low skilled work, so that they are aware of the opportunities available to them, and potentially providing funding to support them on their journey.

The Knowledge Exchange provides information services to local authorities, public agencies, research consultancies and commercial organisations across the UK. Follow us on Twitter to see what developments in policy and practice are interesting our research team. 

Research Online: an expert source of information on the Scottish labour market

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One of the Knowledge Exchange’s key aims is to support the use of evidence and research in public policy and practice. Our Information Service database has been recognised by the Alliance for Useful Evidence in its Evidence Ecosystem which illustrated the diversity of organisations involved in supporting evidence use in the government and public sector. But we also support two other sector-specific research portals – Research Online and Evaluations Online.

Here we introduce Research Online, which first launched over 14 years ago and which we have worked with Skills Development Scotland to develop and update ever since.

Scottish labour market intelligence

Research Online is Scotland’s labour market hub. The portal provides an authoritative source of labour market research and analysis relevant to Scotland and supports evidence-based policy making in the Scottish labour market.

Before Research Online was created, research suggested that although useful labour market research and analysis was undertaken within Scotland by a large range of organisations, there was no single dissemination source.

Therefore, a requirement existed for a portal that clearly identified current labour market intelligence (LMI), provided a common understanding of current gaps and provision in areas including labour supply and skills, and focused action to ensure LMI met Scottish user needs.

Research Online was conceived to improve access to this wealth of intelligence.

The most comprehensive collection of labour market intelligence

The portal now contains thousands of documents on a range of labour market topics including:

  • Employment;
  • Skills and training;
  • Unemployment;
  • Entrepreneurship;
  • Vocational education and training;
  • Workforce development; and
  • Equal opportunities.

The material available on the portal includes research, policy, analysis, discussion and sectoral and geographic profiles. Our team sources the latest research and policy documents from a wide range of sources, including academic journals, government departments and agencies, labour market research centres and material sent in directly by key organisations in Scotland and the wider UK. The available material includes grey literature, government policy and up-to-date academic research.

Research Online also incorporates a current awareness service that alerts registered users to new material on a fortnightly basis. It also has integrated reading list functionality.

Free to access

Research Online can be accessed by anyone, free of charge. You can browse the material here without registering, as well as create reading lists to be accessed at a later date or shared with colleagues.

If you would like to sign-up for a range of current awareness alerts that keep you up to date on a variety of labour market topics, covering both Scotland and the wider UK, you can do so here.

Our shared vision is for Research Online to be recognised as a key dissemination mechanism by Scotland’s producers of labour market intelligence and to be at the centre of a community of practice for labour market researchers, practitioners and policy-makers.

You can find out more about the projects The Knowledge Exchange team has been involved in, and the consultancy services we offer, here.

Opportunity or necessity… what’s fuelling the growth in self-employment?

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With unemployment reaching its lowest level since 1975, it may seem like the state of the labour market has improved in recent years. However, a closer look at the statistics suggests that this is not necessarily the case.

The strong performance in the labour market in part reflects the growth in self-employment, which has been a distinguishing feature of the labour market’s recovery since the last recession.

Growth in self-employment

There were almost 750,000 more self-employed in the UK workforce at the end of 2014 than at the start of the global financial crisis in 2008, representing a high proportion of the total net growth in jobs over this period. Self-employment accounts for over 15% of those in work in the UK – 4.8 million of a workforce of around 32 million. Between March 2008 and March 2017, self-employment accounted for almost a third of total employment growth.

The significance of the contribution of self-employment is highlighted in a recent article published in Regional Studies, which notes that of the 920,000 net new jobs created between quarter 1 of 2008 and quarter 2 of 2014, 693,000 were in self-employment.

There has also been a rise in the share of female self-employed and those that work part-time, in addition to growth in a broader range of industries and occupations among the self-employed.

Recent ONS figures also show that the growth in self-employment between 2001 and 2016 has been driven mainly by those who have a degree (or equivalent), leading to the share of the self-employed with a degree or equivalent increasing from 19.3% in 2001 to 32.6% in 2016 as a share of total self-employed. As a share of total employment (self-employed and employed), the figures show that relatively highly-qualified individuals are becoming more concentrated in the self-employed.

Earnings growth?

The reasons for this growth has been the subject of much debate, particularly as research suggests “many fail to earn a decent living”. This recent analysis by the New Economics Foundation found that 54% of all self-employed people are not earning a decent living. It also found that the percentage of the labour force in ‘good jobs’ had decreased from 63% in 2011 to 61% in 2016, suggesting that the quality of jobs is perhaps declining.

Similarly, the ONS figures suggest that the self-employment labour market remains financially insecure for its workers. They show that the distribution of self-employed income appears centred around £240 a week, much lower than that for employees, which is centred around £400 a week.

And, according to a recent report from CIPD, their real incomes have fallen more since 2008 than those of employees.

Perhaps, then, the self-employment growth has been driven by necessity rather than choice due to a lack of opportunity in the full-time labour market.

However, the evidence suggests it is not this simple.

Despite the widening gap in earnings between the self-employed and employed, the self-employed continue to have higher levels of job satisfaction than employees. The ONS figures also indicate that self-employed workers were more likely to supplement their income from elsewhere.

This would suggest that choice probably plays a large part in self-employment.

‘Push’ or ‘pull’ effect

There has been much discussion over whether the growth in self-employment is predominantly a result of choice or necessity.

It is often seen as a sign of labour market weakness, with self-employment perceived as a ‘last resort’ where a regular job can’t be found. The evidence suggests that this motivation accounts for just a small proportion of the change, however, with most of the rise in self-employment appearing to be out of choice rather than necessity.

Indeed, the recent analysis in the Regional Studies article, which examined the extent to which self-employment was associated with local ‘push’ or ‘pull’ effects, found little or no suggestion of any net ‘recession-push’ effect on self-employment. It suggests that:

  • ‘pull’ factors are more significant in driving transitions into self-employment;
  • self-employed business ownership appears not to function as a significant alternative to unemployment where paid employment demand is weak; and
  • entrepreneurial activity prospers where local wages are higher and unemployment lower.

The uncertainty surrounding Brexit could also be having an effect as declining employer confidence has contributed to a growing number of short-term contracts – potentially making self-employment appear the better choice.

Final thoughts

As the CIPD report highlights, there are probably more opportunities for self-employment now than there were a decade ago. And the self-employed are more likely to value highly aspects of the work, such as its variety, and choice over their working hours and pay.

Across the range of job-related characteristics, it is shown that the self-employed are as satisfied or more satisfied with their working life than employees, resulting in higher levels of overall job satisfaction – a finding that is consistent both over time and from different data sources.

In a time where work-life balance is of increasing importance, it is perhaps no surprise that self-employment is the path of choice.

If you enjoyed reading this, you may also be interested in our previous blogs on the gig economy, ‘the self-employment boom’ and ‘olderpreneurs‘.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.