According to official government statistics, 2017 saw the British economy witness its highest period of employment since records began, with the lowest rate of unemployment recorded since 1975. It is a “jobs factory”, according to the Chancellor Philip Hammond. Yet if we dig a bit deeper the state of the labour market seems much more perilous.
Real wages continue to fall, and many of the new jobs that have been created are within the ‘gig economy’ – temporary or insecure work, which more often than not is low paid, and without the benefits more traditional employment contains (sick pay, holiday pay etc.). What does that mean for those in these jobs? Although ‘flexible working’ can be a benefit to some groups, such as students, their increased use appears to show a worrying development of whole business models circumventing employment taxes in a race to the bottom to achieve a ‘competitive edge’, representing a wholesale transfer of risk from employer to employee.