Main job sectors for young people have shed nearly a million jobs since 2007
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)|
|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|
|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%|
|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%|
* The longer definition of “distribution, hotels and restaurants” is “wholesale, retail, the motor trade or hotels and restaurants”, as used in earlier tables.