In 2016 around 36% of young women will earn less than the new recommended living wage
36% of young women earn less than the new recommended living wage.
In case the current economic outlook wasn’t depressing enough for you, a new study published today reveals that a large proportion of women in their twenties will be earning less than they need to live on in 2016.
Think tank The Resolution Foundation predicts that next year, 36% of young women will fall short of receiving £8.25 per hour which finance experts maintain is the new minimum amount neccessary for people to live on in the UK – although this is not compulsory for businesses.
The figure is compared to 29% of men the same age who do not earn over £8.25.
The outlook for middle-aged workers is only slightly better in 2016, with 24% cent of women and 10% of men in their forties expected to earn less than the living wage.
The report comes today as Mayor Boris Johnson announced an increase to the voluntary London Living wage, from £9.16 to £9.60 and a 40p increase to the voluntary national Living Wage 40p from £7.85 to £8.25.
The Foundation’s statistics follow a report from professional services firm KPMG which revealed that 23% of all workers in the UK (around six million people) earn less than the national Living Wage – a gloomy figure which is up 1% on last year and 2% on 2013.
As the voluntary rates rise, the compulsory National Minimum Wage will also increase to £7.20 per hour from April 2015 – but this is only available to workers aged 25 and over.
Speaking about the findings, Adam Corlett, economic analyst at the think-tank, said: ‘While you’d expect young people to move on to higher wages as they gain experience, the fact that they are moving jobs far less frequently today compared to before the crash is a real cause for concern. This risks holding up their careers and could leave them stranded on low pay.’
This is compounded by the gender pay gap
where on average, women earn 22% less than their male co-workers. But until the government brings in a compulsory minimum wage for all
workers in the UK, it seems that the young female labour force in particular will continue to be exploited by a system of limited jobs, low security and poor wages.