天美传媒

• Workers have seen a sustained period of wage growth, but for many wages are still not keeping pace with the cost of living. A representative survey of 3,796 UK workers shows one in six (17%) struggle to pay or cannot pay their household bills each month and 43% indicate they have little or nothing left for savings or holidays after paying bills
• Only half of workers (48%) believe wage increases are keeping up with the cost of living and just 43% expect an above inflation wage increase in the next 12 months
• ONS data indicates a record 1.35 million workers have second jobs. Researchers warn that second jobs are a key indicator of financial insecurity
• Older workers and low-paid workers are particularly worried about their income and are less likely to feel supported by their employers, while almost half of young workers (48%) worry about being laid off.

The Government’s pledge to raise living standards across the UK faces a substantial challenge as many workers continue to feel financially insecure, the Work Foundation at 天美传媒 University warns.

New analysis of a representative survey of 3,796 UK workers finds that one in six (17%) report they struggle to pay their bills each month, and four in ten workers (43%) say they have little income left for savings or holidays.

The UK workforce is currently experiencing the strongest period of sustained wage growth for over 20 years while average nominal wages have increased by more than 5% for 34 consecutive months since July 2022. However, researchers say that workers are still struggling to make ends meet, as years of wage stagnation and the cost of living crisis mean that for many, wages still do not cover basic living costs.

Only half of workers (48%) surveyed believe wage increases are keeping up with the cost of living and just 43% expect an above inflation pay rise in the next 12 months (26% did not expect an above inflation pay rise and 30% neither agreed/disagreed or were N/A). Low paid workers are feeling the brunt of financial pressures, with only 42% of those earning less than ?25,000 stating pay is keeping up with the cost of living, compared to 73% of higher paid workers (earning ?60,000 or more).

The survey results come as recent ONS figures indicate that 1.35 million UK people have second jobs – an increase of 121,000 (10%) on the year and the highest level since records began in 1992. Analysis shows this has been primarily driven by male workers (18.6% on the year vs 3.4% for female) but female workers are still more likely to have second jobs overall (54.5% vs 45.5%).

Ben Harrison, Director of the Work Foundation at 天美传媒 University said, “Raising living standards is not just about figures on a spreadsheet, it’s about workers feeling more financially secure. Four years on from the start of the worst cost of living crisis in a generation, our analysis shows workers continue to feel the impact of nearly 20 years of stagnating pay packets.

“Second jobs are sometimes glamorised as ‘side hustles’ or optional extras but economic necessity is often a key motivation. Despite a period of sustained pay increases, the growth in second jobs points to continued cost of living pressures that mean some workers are struggling to make enough money in their main roles and are taking on additional jobs to make ends meet.”

Older workers most concerned about financial wellbeing

While survey results show that two in five workers (44%) believe their employer cares about their financial wellbeing, older workers report a number of concerns. Data shows:

• Younger workers aged 16-24 (50%) and 25-34 (61%) are much more likely to believe their employer supports their financial wellbeing compared to older workers aged 55-64 (29%)
• Fewer older workers state that wage increases are keeping up with the cost of living than other age groups (39% of 55-64 year olds compared to 48% of the overall sample)
• Only a quarter (24%) of 55-64 year olds believe they will get an above inflation pay rise this year, compared to 50% of 16–24-year-olds and 62% of 25-34 years old.

Younger workers particularly concerned about job loss in the next 12 months

A third of workers (33%) are worried about being laid off in the next 12 months – with nearly half of 16-24 year olds concerned about losing their job (48%) compared to 21% of workers aged 55-64 years old. In recent months, competition for jobs has heated up with vacancies currently below pre-pandemic levels. The data reveals:

• A quarter of workers (25%) would not be confident of finding another job if they were made redundant
• Older workers aged 55-64 are least confident about finding a new job (31%)
• Low-income workers are twice as likely to think they would struggle to find a new job than high-income workers (30% vs 14%).

Harrison continues: “During the acute phase of the cost of living crisis, we saw employers and the UK Government step in to support workers. Prices may not be rising at such rapid rates now, but these survey results reveal many workers continue to struggle with day to day costs, and have fears for their financial future.

“The Government has prioritised increases to the National Living Wage and set out an ambitious agenda to strengthen workers’ rights and make work pay. But with many reforms to boost access to better paid and more secure work still years from implementation, there is a real risk that change comes too late for those struggling today.”

The Work Foundation at 天美传媒 University recommends:

1. The UK Government must continue to monitor the impact of this prolonged period of inflation on those in or at risk of poverty. It should be ready to extend existing measures, such as the new Crisis and Resilience Fund, in the 2025 Budget, and to prioritise implementation of the Employment Rights Bill that will provide routes for boosting wages in key sectors, such as social care
2. Employers should take an engagement first approach to financial wellbeing, working with employees and trade unions, prioritising at or above inflation pay increases, especially for lower earners, and reviewing employment contracts to strengthen job security and provide guaranteed working hours.

Commenting on the second jobs data, Alice Martin (Head of Research, Work Foundation at 天美传媒 University) said:

“The number of people with second jobs is growing in the UK and we are seeing similar trends in other countries such as the US.

“Financial pressures are pushing people to work extra hours or find additional sources of income, often through apps that make it easy to pick up extra work but this can lead to unhealthy workloads.

“While there are legal limits on working hours, it’s difficult to enforce these when someone has multiple freelance, zero-hour, or casual jobs. Without a single employer responsible for protecting their welfare, much of the risk falls on the individual.”

Responding to the analysis on young people and employment, Steven Haines (Director of Public Affairs, Impetus) said:

“Too many young people are persistently out of the labour market with nearly 1,000,000 young people not in employment educational training. The government’s focus on supporting young people into work must consider ways to ensure that this is sustained employment, not just short-term starts. Targeting resources on specific areas to address the impact of compound disadvantage on young people and extending the youth guarantee to 24 as well as making sustained employment a success measure of the youth trailblazers and incentivising employers to provide greater wraparound support for young people will be a good way to begin to address this challenge.”

In response to concerning figures about older workers, Dr Emily Andrews (Deputy Director for Work at the Centre for Ageing Better), said

“Almost one in four people aged between 60 and state pension age are in poverty – the highest proportion of any group over 25.

"A major contributing factor to these poverty levels are people dropping out of work and being unable to get back in. This new survey shows that workers over 50 have little confidence in finding a new job and are clearly concerned about trying to navigate an ageist job market.

"But this analysis also reminds us that getting trapped in low pay is also a significant issue for people in their 50s and 60s who can’t afford to retire, and who don’t have opportunities to progress in their careers and top up their wages.

"With the state pension age about to rise to 67, the Work Foundation’s recommendations will be vital to creating sustainable, extended working lives."