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The Skills Dilemma Skills Under-Utilisation and Low-Wage Work

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The Skills Dilemma Skills Under-Utilisation and Low-Wage Work
The Skills Dilemma
Skills Under-Utilisation and Low-Wage Work
A Bottom Ten Million Research Paper

Jonny Wright and Paul Sissons January 2012

Contents

1. Introduction 2. Skills under-utilisation in the UK and low-wage work – the scale of the problem 3. The challenge of improving low-wage work: the role of skills utilisation 4. An analysis of skills under-utilisation in two low-wage sectors – retail and hospitality 5. Conclusions and policy recommendations Appendix I: Under-use of skills in The Work Foundation’s Knowledge Workers Survey

3 8 11 17 27 32

List of Boxes, Figures and Tables Box 1: Approaches to skills utilisation Box 2: Summary findings: Drivers of skills under-utilisation in low-wage sectors Figure 1: Percentage of employees over and under-skilled, by industry Figure 2: Percentage of employees over and under-skilled, by occupation Figure 3: Employment by occupation in the retail sector and the whole economy Figure 4: Employment by occupation in hospitality and the whole economy Table 1: Making bad jobs good 5 23 10 10 18 20 16

Acknowledgements
This paper is published as part of our Bottom Ten Million research programme. We would like to thank our sponsors – Barrow Cadbury Trust, Private Equity Foundation, The Tudor Trust and Working Links. We would also like to thank the following expert interviewees: Prof. Ewart Keep, Thomas Baum, Dr. Odul Bozkurt, Michelle Irving, Anne Murphy, Aoife Ni Luanaigh, David Fuhr, Bob Butcher, Mike Darby Prof. Irena Grugulis, Katerina Rudiger, Linda McLeod, Marc Robertson, Kate Tetley, Prof. Dennis Nickson. Jonathan Wright has left The Work Foundation, the report does not represent the view of his new employers.

This paper is the second in a series of publications as part of The Work Foundation’s new research programme, The Bottom Ten Million, which focuses on the employment prospects of Britain’s low earners between now and 2020 and seeks to identify the priority measures that need to be taken if



Links: Limitations Broad approach MeasurementS (Source: CFE, 2008)

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