A cross-party group of borough Leaders has called for action to improve job quality, as a new report shows half a million Londoners are in low paid work, with a third of a million in insecure employment.
London has a dynamic economy, with lots of high-quality jobs. However, the capital’s labour market is highly unequal, with many Londoners stuck in low paid and poor-quality work. The report – which is the first comprehensive study of job quality in London – finds that:
While average pay is higher than other regions, 574,000 jobs in London pay below the London Living Wage. Londoners earning below the London Living Wage are half as likely to be satisfied with their job as those earning above that level;
331,000 Londoners are in insecure work, with the number of people on zero hours contracts having doubled in the last decade;
Women, ethnic minority, and disabled Londoners are more likely to be in poor quality work. Black Londoners (11%) are twice as likely to be in insecure work as white Londoners (5%);
There is huge variation between boroughs. One in three (33%) jobs in Haringey pay below the London Living Wage, the highest rate in the UK, compared to 4% in City of London.
London boroughs and the Mayor are committed to supporting Londoners to access good work. The report highlights a range of measures they are taking to drive up job quality:
The Mayor of London established the Good Work Standard, an accreditation scheme which sets a benchmark for job quality. Over 160 employers have signed-up;
Lambeth Council and Lewisham Council provide a business rates incentive to employers who commit to paying the London Living Wage employers;
Islington Council is working with ‘anchor institutions’ locally to use procurement to promote the Living Wage;
Southwark Council works with employers through their local jobs brokerage – Southwark Works – to help them improve employment practices and job quality;
The new Labour Government has committed to introducing a ‘New Deal for Working People’ focussed on improving pay and job quality. The Deputy Prime Minister will use her speech at Labour Party Conference on Sunday to set out how the government will deliver this, ahead of the introduction of an Employment Rights Bill next month. The Mayor of London is also working with boroughs to develop a London Growth Plan, with the aim of creating 150,000 high quality jobs.
The report calls for the Government to set out a national mission to improve job quality and to ensure that Jobcentre Plus focusses on helping people into decent work. It encourages the Mayor of London to continue to promote the Good Work Standard, and to produce an annual Good Work London report, measuring progress in improving job quality in the capital.
Cllr Kieron Williams, Leader of Southwark and Chair of Central London Forward said:
“While London has a dynamic economy, it is also highly unequal. Hundreds of thousands of Londoners are in low paid, insecure jobs.
“As boroughs, we are committed to working with the Mayor and the new Government to drive up job quality in the capital, so that all Londoners can share in the success of their city.”
Howard Dawber, Deputy Mayor of London, said;
“Delivering an inclusive economy is one of the core principles of the London Growth Plan and programmes including the Mayor’s Good Work Standard, the Living Wage campaign and locally-led initiatives are pivotal to improving job quality. I look forward to working closely with organisations and residents within Central London Forward’s local authorities to maintain and strengthen our position as the best city in which to live and work.”
