One in five low-paid workers stuck in dead-end job, TUC says

One in five low-paid workers remains stuck in a dead-end job after 10 years, according to research for the TUC.

The study, carried out by the Fabian Society thinktank, looked at low-paid employees in 2001-4 and again in 2014-16.

It found retail was the worst industry with 42% of low-paid workers failing to progress to better-paid jobs over the period covered. Administration was almost as bad on 40% with transport and logistics following on 35%.

About 0.5m people aged 18-29 work in low-paid retail jobs now, the Fabians calculated. Median pay for those workers is £8.42 an hour – £1.46 less than the median for the same age group across the economy and substantially less than the £12.18 median rate for the wider population, the research showed.

Across industries, nine in ten low-paid teenagers in 2001-4 escaped low pay by their mid-20s but in retail more than a quarter (27%) were still badly paid.

The TUC said without action by employers and the government a generation of young retail workers risked being stuck in badly paid jobs with little hope of advancement.

TUC general secretary Frances O’Grady said: “It’s particularly concerning to see such poor progression in industries like retail and administration, where huge swathes of young people put their first toe on the career ladder. Unless we boost opportunities and pay we risk losing a generation of young workers to dead-end jobs on low pay with no hope of any career progression.”

Andrew Harrop, the Fabians’ general secretary, said paying workers more and offering better opportunities could increase retention, attract a wider pool of workers and improve productivity.

“Retail is now right at the bottom of the pay and progression league tables, and the sector has developed a reputation as a place where people get stuck rather than get on,” he said.

Recruiter Mercer has advised companies relying on young workers to offer workers better opportunities and conditions with a Brexit-induced labour shortage looming. Improving skills for low-paid workers in sectors such as retail could help close the UK’s productivity gap with other developed countries, the National Institute of Economic and Social Research has argued.