From the TUC

Main job sectors for young people have shed nearly a million jobs since 2007

17 Apr 2012, by in Labour market

TUC analysis published today ahead of a busy week of economic indicators, shows that the manufacturing and construction sectors have suffered the biggest loss of jobs since the eve of the recession, while finance and business services is the only sector with a bigger workforce today.

The analysis looks at industries including construction, manufacturing, retail, hotels and restaurants, and the finance and business services sector. The analysis found that the types of jobs that account for over half of all youth employment – manufacturing, construction and retail, hotels and restaurants – have shed nearly a million jobs since 2007.

The number of manufacturing jobs fell by 14 per cent between the last quarter of 2007 and the last quarter of 2011, a loss of 406,000 jobs. The construction sector had the next biggest fall losing 281,000 jobs (12 per cent of all construction jobs).

The retail, hotel and restaurants industry has lost 221,000 jobs since the end of 2007, a fall of three per cent. Four in ten young workers are employed in this sector, compared to just one in six workers over the age of 25.

Finance and business services is the only sector to have expanded since 2007, gaining 98,000 jobs (up two per cent) over the last four years.

The relative health of finance and business services has helped to boost pay for workers in this industry. Wages have increased by 11.3 per cent since 2007, compared to an increase of just 0.2 per cent in construction and 6.7 per cent in retail, hotel and restaurants.

However, with RPI inflation increasing by 13.5 per cent over the same period, the wages of all workers have fallen in real terms.

With the Office for Budget Responsibility now forecasting that wages will continue to fall in real terms until mid-2013, three years on from when wages last rose, the outlook is looking tough for both job seekers and those already in work.

Workforce jobs by industrial sector, 2007–2011

Manufacturing (000s) Construction (000s) Retail, hotels and restaurants (000s) Finance and business services (000s)
2007 Q4 2920 2336 7046 6395
2008 Q4 2684 2347 6959 6390
2009 Q4 2609 2176 6683 6231
2010 Q4 2551 2038 6686 6291
2011 Q4 2514 2055 6825 6493
Change, 2007 -2011 -406 -281 -221 98
Change (%), 2007 –2011 -14% -12% -3% 2%

Source: Labour Force Survey (LFS)

 Monthly earning data by industrial sector, 2007–2011

Manufacturing Construction Retail, hotels and restaurants Finance and business services
2007 Q4 487 538 283 547
2008 Q4 499 535 286 566
2009 Q4 510 542 292 571
2010 Q4 524 526 296 589
2011 Q4 532 539 302 609
Change (£’s), 2007-2011 45 1 19 62
Change (%),  2007–2011 9.2% 0.2% 6.7% 11.3%

Source: Monthly wages and salaries survey

 Number of workers by industrial sector and age group

Industry Under 25 years of age % 25 years of age and over %
Agriculture, forestry and fishing 26,014 0.7% 314,359 1.2%
Energy and water 40,654 1.1% 481,526 1.9%
Manufacturing 239,137 6.7% 2,613,238 10.3%
Construction 258,855 7.3% 1,893,686 7.5%
Distribution, hotels and restaurants* 1,472,496 41.2% 4,029,271 15.9%
Transport and communication 173,064 4.8% 2,322,021 9.2%
Banking and finance 469,181 13.1% 4,251,042 16.8%
Public admin, education and health 591,467 16.6% 8,120,771 32.1%
Other services 299,094 8.4% 1,298,800 5.1%
Total 3,569,962 100.0% 25,324,714 100.0%

Source: LFS

 * The longer definition of “distribution, hotels and restaurants” is “wholesale, retail, the motor trade or hotels and restaurants”, as used in earlier tables.

2 Responses to Main job sectors for young people have shed nearly a million jobs since 2007

  1. Bill Kruse
    Apr 17th 2012, 9:04 am

    For many on sickness benefits, the right to appeal against the crooked Atos decisions is being removed. That’s a death sentence for a lot of people as it signals the withdrawal of the State support which they depend on literally for life-support. Life might be tough in a few years for those on JSA and in work, but at least they can assume they’ll still be alive. Alive until they get sick, that is. This government is quite deliberately killing its own citizens in the pursuit of profit. It’s high time this inescapable fact was receving more publicity.

  2. Not NOW, please! | ToUChstone blog: A public policy blog from the TUC
    Apr 20th 2012, 4:06 pm

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