Whose recovery? Job quality isn’t keeping pace with job growth
The TUC’s Jobs Quality Index is a new measure of real wages and underemployment. It aims to give a picture of the quality of work by looking at how many of those in work are under-employed (either working part time when they want a full time job or working on a temporary contract when they want a permanent one) and comparing average earnings growth to RPI inflation. It is measured relative to the situation in July 1992. A higher index indicates that people in work are likely to be more fully employed and enjoying better pay growth, a lower number suggests rising underemployment and weaker pay growth.
When we overlay it on job growth, we can see a picture emerging since the recession. Job quality has slumped to a long term low, but it hasn’t risen again as the jobs have started to return. Here’s some more on the Job Quality Index, and what it says about the way many working people are missing out on the benefits of the recovery.