Too many workers are unable to climb the earnings ladder

Almost three-quarters of Britain’s workers who were on low pay in 2002 failed to escape from it over the course of the following decade, according to a comprehensive study of who is able to get on in life by moving up the earnings scale.

The report from independent think-tank the Resolution Foundation shows that of the 4.7 million workers who were low-paid in 2002 - 1.3 million (27%) didn’t leave low pay at any point during the decade, and that a further 2.2 million (46%) cycled in and out of low pay but had failed to escape it for good by the end of the decade.

Only 800,000 workers (18%) escaped low pay by moving up the earnings ladder without slipping backwards over a sustained period during these ten years. A further 400,000 (9%) retired or otherwise left the labour market during the decade.

Women are apparently much more likely to be stuck than men. Of the women who were low-paid in 2012, one in three were stuck on low pay over the preceding decade – 900,000 employees. This compares to just over one in five of men – 400,000 employees.

Alex Hurrell, senior analyst at Resolution Foundation and author of the report, said: “For many people, low pay is not a first rung on the ladder – it’s a long-term or even permanent reality. Identifying those who are least likely to escape low pay is the first step in targeting policies to help them get on.”

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