Addressing low pay and inequality

摘要

In-work poverty, insecure jobs and vast economic inequality are entrenched characteristics of the UK's labour market. The COVID-19 pandemic has only exacerbated these problems: over the course of the pandemic, lower-paid workers and workers on atypical contracts have been more likely to be furloughed, lose hours or lose their jobs. Low pay and insecurity are in large part a consequence of the fact that UK workers are extremely disempowered, with workers and trade unions excluded from the governance of most businesses. On a measure of democracy at work among 28 European countries, the UK scores right at the bottom end, performing better than only Latvia and Estonia in 2019. While most policy and regulation on pay and worker voice is set by central Government and regulators at the national level, there is substantial scope for local and regional authorities to promote more responsible employment practices. Local economic strategies are especially necessary given that the pandemic has had widely divergent impacts on different parts of the UK. The role of local and regional authorities as economic actors will be essential in rebuilding local economies.