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Annual Survey of Hours and Earnings Scotland Analysis OCEAES: - - PowerPoint PPT Presentation

Annual Survey of Hours and Earnings Scotland Analysis OCEAES: Economic Statistics 30 Median Full-Time Gross Weekly Earnings Proportion of Low and High Paid Employee Jobs (based on hourly pay) 600 Proportion of Employee Jobs (%) Median


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SLIDE 1

10 20 30 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Proportion of Employee Jobs (%) Low-paid High-paid

19.4 22.9 26.0 27.7 22.8 Scotland England Wales Northern Ireland United Kingdom

5.7

  • 7.8

15.0 8.6

  • 4.4

17.9

  • 10
  • 5

5 10 15 20

Full-time Part-time All Gender Pay Gap (%) Scotland UK

300 400 500 600 2006 2008 2010 2012 2014 2016 2018

Median Full-Time Weekly Pay (£) Nominal Adjusted for inflation

Page 1

Annual Survey of Hours and Earnings – Scotland Analysis

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Median Full-Time Gross Weekly Earnings

Page 1

Proportion of Employees (18+) earning less than Living Wage by Country

Gender Pay Gap for median hourly earnings excluding overtime

Proportion of Low and High Paid Employee Jobs (based on hourly pay)

Further details on pages 2-6 Further details on pages 13-17 Further details on pages 9-12 Scotland had the 3rd highest median earnings of the 12 UK countries and regions in 2018. Gender Pay Gap for full-time employees has decreased from 6.6 per cent in 2017 to 5.7 per cent in 2018. Scotland had the lowest proportion of the UK countries Lowest proportion of low-paid employee jobs (16.8 per cent) in 2018 Further details on pages 7-8

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SLIDE 2
  • 6%
  • 4%
  • 2%

0% 2% 4% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

200 400 600 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Median Full-time Weekly Pay (£)

Nominal Pay Pay adjusted for inflation

Page 2

Weekly Earnings

Median Weekly Earnings increased by 3.0 per cent from £546.60 in 2017 to £563.20 in 2018

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Median Full-Time Gross Weekly Earnings, 2018

3.0%

Increase

  • ver the

year

Scotland

0.8%

Increase

  • ver the

year

Nominal

Adjusted for inflation

£563.20

Gross median weekly earnings for full-time employees in Scotland were £563.20 in 2018, an increase of 3.0% over the year. In the UK, gross median weekly earnings for full-time employees were £569.00, an increase of 3.5%. Adjusted for inflation (using the Consumer Prices Index including owner occupiers' housing costs (CPIH)), gross median weekly earning for full-time employees in Scotland increased by 0.8% over the year from £558.80 in 2017 to £563.20 in 2018, lower than in 2010. The UK increased by 1.2% over the year from £562.30 to £569.00.

Median Full-Time Gross Weekly Earnings, Scotland

3.5%

Increase

  • ver the

year

UK

1.2%

Increase

  • ver the

year

Nominal

Adjusted for inflation

£569.00

£563.20 Percentage Growth in Earnings (adjusted for inflation), Scotland

Page 2

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SLIDE 3

453.3 563.2 194.9 546.3 598.9 172.4 378.6 516.2 201.3 2.5 3.0 2.9 2.1 3.3 0.0 4.8 3.6 4.2

All Full-time Part-time

All Men Women

£ per week Change

  • n Year

(%)

385.5 549.9 681.9 642.0 373.8 499.1 585.5 510.0

16-24 25-34 35-49 50-64 Median Full-Time Weekly Earnings (£)

Men Women

Page 3

Weekly Earnings by Gender and Age

Women’s full-time weekly earnings increased at a faster rate than men’s between 2017 and 2018

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Work Pattern In the last year, women’s earnings increased at a faster rate than for men. Median gross full-time weekly earnings for women increased by 3.6 per cent to £516.20 compared with an increase of 3.0 per cent for men. Median gross part-time weekly earnings for women increased by 4.2 per cent to £201.30 while men’s part-time earnings remained unchanged. Age For men and women in Scotland, full-time gross weekly earnings reached a peak at age range 35-49 (£681.90 for men and £585.50 for women). Women’s full-time weekly earnings are less than men’s earnings for all age groups with the gap between men and women’s earnings increasing with age from 16-24 to 50-64 year olds.

Median Gross Weekly Earnings by Work Pattern and Gender Median Full-time Gross Weekly Earnings by Age and Gender

Page 3

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SLIDE 4

+5.0% +3.6% +3.7% +4.0% +5.4% +1.8% +3.1% +2.3% +0.7% +3.0% 100 200 300 400 500 600 700 800 900

ELEMENTARY OCCUPATIONS SALES AND CUSTOMER SERVICE OCCUPATIONS CARING, LEISURE AND OTHER SERVICE OCCUPATIONS ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS PROCESS, PLANT AND MACHINE OPERATIVES SKILLED TRADES OCCUPATIONS ASSOCIATE PROFESSIONAL AND TECHNICAL OCCUPATIONS PROFESSIONAL OCCUPATIONS MANAGERS, DIRECTORS AND SENIOR OFFICIALS SCOTLAND

£ per week

100 200 300 400 500 600 700 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Median Full-Time Weekly Pay (£) Public Sector Private Sector Median Full-Time Gross Weekly Earnings and Percentage Change by Occupation Page 4

Weekly Earnings by Sector and Occupation

Growth in Full-time Weekly Earnings was highest in the lowest paid occupations

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS *National Minimum Wage/National Living Wage

Median Full-Time Gross Weekly Earnings by Public and Private Sector, Scotland, 2018

In 2018, the occupation with the highest median weekly earnings for full-time employees was Managers, directors and senior officials at £772.20. This was £209.00 higher than Scotland as a whole. Elementary and Sales and customer service

  • ccupations were the lowest paid occupations at

£381.20 and £381.30 per week, respectively. The largest annual percentage changes in full-time median weekly earnings since 2017 were seen in Process, plant and machine operatives and Elementary occupations - likely to be driven by the increase in the NMW/NLW* rates in April 2018.

£528.40 £627.90 Private sector earnings are consistently below public sector earnings

Compared to UK

In 2018, the UK median full-time weekly earnings in the public sector were £613.20, less than the Scottish figure of £627.90. In the UK, median full- time weekly earnings in the private sector were £549.40, higher than Scottish figure of £528.40.

Page 4

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334.9 339.4 308.9 313.8 298.1 569.0 574.9 509.0 563.2 521.2 100 200 300 400 500 600 700 United Kingdom England Wales Scotland Northern Ireland

£ per week 1998 2018

+0.5% +2.1% +3.2% +3.6% +4.2% +3.0% +2.2% +4.2% +2.4% +3.0% +2.5% +3.2% +3.5% 100 200 300 400 500 600 700 800

North East Wales East Midlands Yorkshire and The Humber Northern Ireland North West South West West Midlands East Scotland South East London United Kingdom

£ per week

Median Full-Time Gross Weekly Earnings and Annual Percentage Change by UK Country & Region, 2018

Page 5

Weekly Earnings by Country and Region

Scotland had the 3rd highest median full-time weekly earnings of the 12 countries and regions of the UK

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

In 2018, median gross weekly earnings for full-time employees were highest in London (£713.20) and lowest in the North East (£506.80). Scotland had the third highest median gross weekly earnings for full-time employees of the 12 countries and regions of the UK at £563.20, behind London (£713.20) and the South East (£589.20). Scotland had the largest growth in median gross weekly earnings for full-time employees between 1998 and 2018 of the countries of the UK.

Median Full-Time Gross Weekly Earnings by UK Country

Page 5

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SLIDE 6

40.4 40.0 39.7 40.2 40.4 37.8 37.6 37.1 37.1 36.5 16-24 25-34 35-49 50-64 65+

Mean full-time paid hours Men Women

0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8 37.3 37.4 37.5 37.6 37.7 37.8 37.9 38.0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Mean overtime hours worked Mean basic hours worked Basic hours worked Overtime hours worked

17.5 18.0 18.5 19.0 19.5 20.0 20.5 38.0 38.4 38.8 39.2 39.6 40.0 40.4 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Mean total paid part-time hours Mean total paid full-time hours Total Paid Full-Time Hours Total Paid Part-Time Hours

Page 6 Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Mean Weekly Paid Total Hours by Work Pattern

Page 6

Mean Full-time Weekly Paid Total Hours by Age and Gender Mean Full-time Weekly Paid Basic and Overtime Hours

Weekly Paid Hours of Work

Overtime hours have reduced from an average of 2.3 hours per week in 1997 to 1.1 hours in 2018

OCEAES: Economic Statistics

Total Hours (basic & overtime) by Work Pattern The average total paid hours per week for full-time employees increased by 0.3 per cent between 2017 and 2018, while average total paid hours for part-time employees remained unchanged over the year. Basic and Overtime Hours Average overtime hours per week for full-time employees have decreased from 2.3 hours per week in 1997 to 1.1 hours per week in 2018 while average basic hours have remained relatively constant at 37.7 hours per week.

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SLIDE 7

0% 20% 40% 60% 80% 100%

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Proportion of Employee Jobs

Low-paid Middle-paid High-paid

Page 7

Low and High Pay in Scotland

Lowest proportion of low-paid employee jobs in Scotland since the series began in 1997

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Low and High-Paid Employee Jobs

For this analysis, low pay is defined as two-thirds

  • f the median hourly earnings for those working in

Scotland and high pay is defined as the value that is one and a half times the median hourly earnings for those working in Scotland. Calculation For example, the median hourly earnings for all employees working in Scotland in 2018 is £12.90. Therefore, low-paid employee jobs are defined as earning less than £8.60 per hour and high-paid employee jobs are defined as those earning more than £19.35 per hour.

Source: Organisation for Economic Co-operation and Development (OECD) definitions (https://data.oecd.org/earnwage/wage-levels.htm)

Page 7

Proportion of low and high-paid employee jobs, Scotland, 1997-2018

In 2018, it is estimated that 16.8 per cent of all employee jobs in Scotland are low-paid in relation to hourly pay, down from 20.2 per cent in 2007. This is the lowest proportion of low-paid employee jobs since the series began in 1997.

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SLIDE 8

16.8 9.4 33.9 23.7 28.4 12.8

10 20 30 40

All Full-time Part-time

Proportion of Employee Jobs (%)

Low-paid High-paid

0% 20% 40% 60% 80% 100%

ELEMENTARY OCCUPATIONS SALES AND CUSTOMER SERVICE OCCUPATIONS CARING, LEISURE AND OTHER SERVICE OCCUPATIONS SKILLED TRADES OCCUPATIONS ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS ASSOCIATE PROFESSIONAL AND TECHNICAL OCCUPATIONS PROFESSIONAL OCCUPATIONS MANAGERS, DIRECTORS AND SENIOR OFFICIALS SCOTLAND

Low-paid jobs Middle & High paid jobs

Page 8

Low and High Pay in Scotland by Work Pattern and Occupation

52.5 per cent of all employee jobs in elementary occupations are low-paid

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS Page 8

Work Pattern

In 2018, 33.9 per cent of part-time employee jobs are estimated to be low-paid compared with 9.4 per cent of full-time employee jobs. Between 2017 and 2018, the proportion of low- paid full-time employee jobs decreased from 9.9 per cent to 9.4 per cent while the proportion of low-paid part-time employee jobs remained unchanged.

Occupation

In 2018, over half (52.2 per cent) of all employee jobs in elementary occupations were low-paid, down from 52.7 per cent in 2017. Professional occupations had the lowest proportion of low-earning employees at 0.8 per cent.

* estimate for the proportion of low-earning employees jobs in Process, plant and machine operative occupations is below the reliability threshold and should not be used for practical purposes.

Proportion (%) of high and low-paid employee jobs by work pattern Proportion (%) of high and low-paid employee jobs by occupation*

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SLIDE 9

5 10 15 20 25 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Gender Pay Gap (%)

Dashed lines represent discontinuities in 2004, 2006 and 2011 ASHE estimates.

UK Scotland

Page 9

Gender Pay Gap

Gender Pay Gap for Full-time Employees in Scotland decreased from 6.6% in 2017 to 5.7% in 2018

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Gender Pay Gap for Median Full-Time Hourly Earnings (excluding

  • vertime), Scotland and UK, April 1997 to 2018

Gender Pay Gap by Work Pattern, Scotland and UK, 2018 8.6% 5.7% 5.7

  • 7.8

15.0 8.6

  • 4.4

17.9

  • 10
  • 5

5 10 15 20

Full-time Part-time All Gender Pay Gap (%) Scotland UK

Gender Pay Gap Calculation

The gender pay gap is calculated as the difference between the average hourly earnings (excluding overtime) for men and women as a proportion of the average hourly earnings (excluding overtime) for men. There are a range of measures used to monitor the gender pay gap.

Gender Pay Gap Comparisons

Median full-time hourly earnings (excluding overtime)

Compared to 2017

Over the last year, the headline Gender Pay Gap in Scotland has decreased from 6.6 per cent to 5.7 per cent due to women’s hourly earnings increasing at a faster rate than men’s hourly earnings.

Compared to UK

The Gender Pay Gap in Scotland has been lower than in the UK since 2003. Over the past year, the gender pay gap in the UK has decreased from 9.1 per cent to 8.6 per cent.

Page 9

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SLIDE 10
  • 10
  • 5

5 10 15 20 25 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Gender Pay Gap (%) 16-24 25-34 35-49 50-64

  • 3.2

1.3 8.1 10.4 5.7 0.0 *

  • 11.0

15.4

  • 7.8

1.5 9.0 16.1 21.6 15.0

  • 15
  • 10
  • 5

5 10 15 20 25

16-24 25-34 35-49 50-64 16+ Gender Pay Gap (%) Full-Time Part-Time All

Page 10

Gender Pay Gap by Age

Gender Pay Gap for Full-time Employees in Scotland increases with age

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Gender Pay Gap for Median Full-Time Hourly Earnings (excluding overtime) by Age, April 1997 to 2018 Gender Pay Gap by Age and Work Pattern, Scotland, 2018

The Gender Pay Gap for full-time employees aged 16-24 is -3.2 per cent meaning that women earn more, on average, than men in this age group. The Gender Pay Gap for full-time employees increases with age, with those aged 50-64 having the highest gender pay gap for all, full-time and part-time employees. The Gender Pay Gap for median full-time hourly earnings has been relatively constant for those aged 25- 34 and 35-49 since 2011.

Page 10

* Gender Pay Gap estimate for part-time employees aged 25-34 is unreliable and should not be used for practical purposes.

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SLIDE 11
  • 1.3
  • 0.6

+1.5 +0.3

  • 0.2
  • 1.5
  • 0.9
  • 2.7
  • 3.8
  • 0.9
  • 5

5 10 15 20 25 30 SALES AND CUSTOMER SERVICE OCCUPATIONS CARING, LEISURE AND OTHER SERVICE OCCUPATIONS ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS PROFESSIONAL OCCUPATIONS ELEMENTARY OCCUPATIONS ASSOCIATE PROFESSIONAL AND TECHNICAL OCCUPATIONS PROCESS, PLANT AND MACHINE OPERATIVES MANAGERS, DIRECTORS AND SENIOR OFFICIALS SKILLED TRADES OCCUPATIONS SCOTLAND Gender Pay Gap (%)

  • 5

5 10 15 20 25 30 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Gender Pay Gap (%)

Public Sector Private Sector Full-time Gender Pay Gap and Percentage Point Change by Occupation, 2018 Page 11

Gender Pay Gap by Sector and Occupation

Gender Pay Gap for median full-time hourly earnings has increased over the year in the public sector

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

In 2018, the Gender Pay Gap for median full-time hourly earnings (excluding overtime) was highest for Skilled trades occupations at 26.9 per cent and lowest for Sales and customer service occupations at 5.9 per cent. Since 2017, the Gender Pay Gap has decreased in 7

  • f the 9 main occupation groups due to women’s

hourly earnings (excluding overtime) in these

  • ccupations increasing at a faster rate than men’s

hourly earnings in these occupations.

5.3% The Gender Pay Gap for the public sector has been consistently below the gender pay gap for the private sector. The Gender Pay Gap for the public sector has been increasing since 2016 while the Gender Pay Gap for the private sector has been continuing to decrease. Gender Pay Gap for median full-time hourly earnings (excluding overtime) by Public and Private Sector, Scotland 17.2%

Page 11

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SLIDE 12
  • 5

5 10 15 20 25 United Kingdom England Wales Scotland Northern Ireland

Gender Pay Gap (%)

1998 2008 2018

  • 3.5%

5.7% 7.3% 8.5% 8.6% 9.8% 10.0% 10.4% 11.8% 11.9% 12.4% 13.7% 8.6%

  • 6
  • 2

2 6 10 14 Northern Ireland Scotland Wales North East North West West Midlands Yorkshire and The Humber East South East South West East Midlands London United Kingdom Gender Pay Gap (%)

Full-time Gender Pay Gap and Annual Percentage Point Change by UK Country & Region, 2018

Page 12

Gender Pay Gap by Country and Region

Scotland had the 2nd lowest gender pay gap of the 12 countries and regions of the UK

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

In 2018, London had the highest gender pay gap for median full-time hourly earnings (excluding

  • vertime) at 13.7 per cent while Northern Ireland

had the lowest at -3.5 per cent. Scotland had the second lowest gender pay gap for median full-time hourly earnings (excluding

  • vertime) of the 12 countries and regions of the UK

at 5.7 per cent, behind Northern Ireland where women earn more than men on average. The Gender Pay Gap has reduced over time for all of the countries of the UK.

Full-time Gender Pay Gap by UK Country, 2018

Page 12

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SLIDE 13

5 10 15 20 25

2012 2013 2014 2015 2016 2017 2018 Proportion earning less than the Living Wage (%)

Earning less than the living wage 95% CI

Page 13

Living Wage

The proportion of employees earnings less than the Living Wage in Scotland increased over the year*

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Real Living Wage Rates

The following rates have been used to calculate the estimated proportion of employees in Scotland earning less than the Living Wage.

Source: Living Wage Foundation (https://www.livingwage.org.uk/calculation)

These Living Wage rates have been independently calculated according to the cost of living based on household goods and services. Living Wage analysis from the Annual Survey of Hours and Earnings covers those aged 18 and over

  • n the PAYE system and whose pay was not

affected by absence.

Real Living Wage rates UK (Outside of London) London 2012 £7.20 £8.30 2013 £7.45 £8.55 2014 £7.65 £8.80 2015 £7.85 £9.15 2016 £8.25 £9.40 2017 £8.45 £9.75 2018 £8.75 £10.20

Proportion of Employees (18+) earning less than the Living Wage, Scotland, 2018 19.4%

470,000 employees (19.4 per cent of people in employment) in Scotland earned less than the Living Wage (£8.75) in 2018, an increase of 37,000 since 2017. Over time The proportion of employees earning less than the Living Wage remained relatively constant between 2012 to 2016, decreased between 2016 and 2017 and increased over the last year.*

*increase over the year is not statistically significant.

Page 13

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SLIDE 14

53.8 18.5 12.4 17.0 46.2 81.5 87.6 83.0 18-24 25-34 35-49 50+

Earning less than the living wage Earning the living wage or more 16.0 22.4 19.4 84.0 77.6 80.6 Men Women Scotland Earning less than the living wage Earning the living wage or more Page 14

Living Wage by Age and Gender

A higher proportion of women (22.4%) in Scotland earn less than the Living Wage than men (16.0%)

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Proportion of Employees (18+) earning less than the Living Wage by Gender, Scotland, 2018

Gender The proportion of women in Scotland earning less than the Living Wage (£8.75) in 2018 was 22.4 per cent, up from 22.0 per cent in 2017 while the proportion of men earning less than the Living Wage increased from 14.5 per cent in 2017 to 16.0 per cent in 2018. Age The age group with the highest proportion of employees earning less than the Living Wage was those aged 18-24 at 53.8 per cent, up from 47.6 per cent in 2017. From 2012 to 2018, the proportion of employees earning less than the Living Wage has decreased for those aged 18-24, increased for those aged 25-34 and 50+ and remained relatively constant for those aged 35-49.

Proportion of Employees (18+) earning less than the Living Wage by Age Group, Scotland, 2018

Page 14

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SLIDE 15

19.4 2.8 8.3 8.3 8.3 8.6 12.2 13.7 15.8 18.0 28.2 33.7 35.4 36.6 46.2 64.4

Scotland Public administration and defence; Compulsory social security Construction Professional, scientific and technical activities Education Information and communication Transportation and storage Human health and social work activities Manufacturing Real estate activities Agriculture, Forestry and Fishing Arts, entertainment and recreation Other service activities Administrative and support service activities Wholesale and retail trade; Repair of motor vehicles and motorcycles Accommodation and food service activities

Page 15

Living Wage by Industry Sector

Accommodation and Food Service Activities industry sector has the highest proportion earning less than the Living Wage

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Proportion of Employees (18+) earning less than the Living Wage by Industry Sector, Scotland, 2018

Notes: 1. Estimates based on Scottish Government analysis of Annual Survey of Hours and Earnings, ONS. 2. ASHE data for April 2018, therefore living wage rate of £8.75 per hour has been applied to this analysis. 3. It is not possible to display the following sectors due to small sample sizes - Electricity, gas, steam and air conditioning supply; Water supply, sewerage, waste management and remediation activities; Financial and insurance activities; Activities of households as employers, undifferentiated goods and services producing activities of households for own use; Mining and Quarrying 4. The sectors are defined using the Standard Industrial Classification (SIC) Codes 2007

The proportion of employees earning less than the living wage is highest in Accommodation and food service activities (64.4 per cent are paid less than the living wage) and Wholesale and retail trade and repair

  • f motor vehicles and

motorcycles (46.2 per cent). The proportion of employees earning less than the living wage is lowest in Public administration and defence (2.8 per cent) and Education, Construction and Professional, scientific and technical activities (all 8.3 per cent).

Page 15

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SLIDE 16

14.2 14.8 15.0 16.2 17.5 18.4 18.5 18.9 19.4 20.3 20.4 20.5 20.8 20.8 20.8 21.6 22.0 22.6 24.0 24.3 25.1 25.7 26.0 26.2 26.3 26.3 27.4 28.3 30.1 30.6

Aberdeen City Midlothian City of Edinburgh Glasgow City West Lothian West Dunbartonshire Dundee City Falkirk Scotland South Lanarkshire Perth and Kinross North Lanarkshire East Lothian Fife Highland Stirling Aberdeenshire South Ayrshire Argyll and Bute North Ayrshire Renfrewshire Scottish Borders Inverclyde East Ayrshire Clackmannanshire East Dunbartonshire Moray Angus East Renfrewshire Dumfries and Galloway

19.4 5.6 27.6 80.6 94.4 72.4 Scotland Public Private

Earning less than the living wage Earning the living wage or more

Page 16

Living Wage by Public/Private Sector and Local Authority

A higher proportion of employees in the private sector earn less than the living wage than employees in the public sector

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Public/Private Sector It is estimated that 27.6 per cent of employees in the private sector earn less than the Living Wage compared to 5.6 per cent in the public sector. Local Authorities 20 of Scotland’s local authorities saw increases in the proportion of employees earning less than the Living Wage between 2017 and 2018.

Proportion of Employees (18+) earning less than the Living Wage by Public/Private Sector, Scotland, 2018

Page 16

Proportion of Employees (18+) earning less than the Living Wage by Local Authority (workplace based), Scotland, 2018

*estimates for Na h-Eileanan Siar, Orkney Islands and Shetland Islands are unreliable and should not be used for practical purposes.

slide-17
SLIDE 17

19.4 22.9 26.0 27.7 22.8 Scotland England Wales Northern Ireland United Kingdom

18.8 19.4 20.4 22.8 23.4 24.4 24.7 25.3 25.7 26.0 26.9 27.7 22.8 South East Scotland London East South West North West West Midlands North East Yorkshire and The Humber Wales East Midlands Northern Ireland United Kingdom

Page 17

Living Wage by Country and Region

Scotland had the 2nd lowest proportion of employees earning less than the Living Wage across the UK

OCEAES: Economic Statistics

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Proportion of Employees (18+) earning less than the Living Wage by Countries and Regions of the UK, 2018

Scotland had the lowest proportion of employees earning less than the Living Wage (19.4 per cent) across the countries of the UK. Across the 12 countries and regions of the UK, Scotland had the second lowest proportion of employees earning less than the Living Wage, behind the South East (18.8 per cent).

Note: Analysis is based on the Living Wage rate of £10.20 for employees in London and £8.75 for employees who did not work in London in April 2018.

Proportion of Employees (18+) earning less than the Living Wage by Country of the UK, 2018

Page 17

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SLIDE 18

Page 18

Annual Survey of Hours and Earnings

Further Information

OCEAES: Economic Statistics

Page 18

Further Information

The Annual Survey of Hours and Earnings (ASHE) is the official source of UK earnings and hours worked estimates. ASHE data is published annually by the Office for National Statistics (ONS) and is based on a 1 per cent sample of the Pay As You Earn (PAYE) system. Tables providing Scottish estimates for a number of different breakdowns are available on the Scottish Government website at: https://www2.gov.scot/Topics/Statistics/Browse/Labour-Market/Earnings ONS: Labour Market Statistics Theme page: http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Labour+Market Employee earnings in the UK:

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/ 2018

Low and high pay in the UK:

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/lowandhighpayuk/2018

Gender Pay Gap in the UK:

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2018

NOMIS: Online database for official labour market statistics: https://www.nomisweb.co.uk/default.asp Contact details Scottish Government, Labour Market Statistics Telephone: (0131) 244 6773 email: LMStats@gov.scot

This slide pack was produced by the OCEAES: Economic Statistics: Labour Market Statistics team. If you have any comments on the style and content of this briefing pack, please contact us at the above email address.