By staying put as opportunities and risks grow, workers miss out on a 4% pay increase.


By staying put as opportunities and risks grow, workers miss out on a 4% pay increase.

Because of a lack of movement in the labor market, many people have missed out on pay raises, but that could change in the 2020s.

The UK jobs market has changed very little in recent decades, with shifts away from manufacturing and toward services being much smaller in the 2010s than they were in the 1980s.

According to a new report, the decrease in change has lessened the impact of job losses while also limiting opportunities for career advancement.

The ‘Changing Jobs?’ report, co-authored by think tank The Resolution Foundation and the London School of Economics’ Centre for Economic Performance, claims that the findings contradict popular perceptions about employment in the UK. Nye Cominetti, Senior Economist at the Resolution Foundation, said: “The labor market is often characterised as being in rapid flux, as robots replace workers and well-paid factory work is replaced by low-paid, low-security gig economy jobs.”

“However, these claims are way off the mark.”

Manufacturing lost 27% of its jobs in the 1980s, equating to 1.8 million jobs, while professional services grew 58 percent, adding 566,000 jobs.

Manufacturing, on the other hand, fell by 9% in the 2010s, while professional services grew at a slower rate of 40%.

This lower churn has been a mixed blessing for workers, according to the study’s authors.

“This has reduced the risk of people losing their jobs, but it has also limited opportunities for workers to move onwards and upwards,” Mr Cominetti explained.

Employees can typically gain a 4%’mover’s pay bonus’ over levels of pay growth among those who stay put, according to the report.

“Low productivity over the past couple of decades has been accompanied by lower levels of change across different sectors of the economy, and fewer people moving jobs,” said Alex Beer, Welfare Programme Head at the Nuffield Foundation, which funded the research.

“To protect and promote people’s well-being during the likely economic change in the coming decade, the government will need to think about how to enable workers to move into growing areas of the economy while also supporting those who are displaced.”

Covid, Brexit, and the transition to net-zero are all expected to help reshape the UK economy in the 2020s, according to the authors of the report.

Since the pandemic, the number of people switching jobs has risen dramatically.

“Brinkwire News Summary.”


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