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At Last, the Minimum Wage Debate Is Growing Up

James Plunkett

This post originally appeared on James's Huffington Post blog

While low pay and in-work poverty have risen up the economic agenda in recent years, our policy debate has been stuck in a loop. Ask most Labour politicians about low pay and you can expect a well-intentioned but passive mixture of pride in the minimum wage and warm words on the living wage before the topic is changed to the importance of protecting support like working tax credits. Turn to a Conservative and the ingredients generally differ but are no less predictable, giving little more traction on low pay itself: a worrying silence on the minimum wage, a touching faith in general skills policy (and a falling skills budget) to help the lowest paid, before a swift change of topic to the importance of tax cuts.

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Low Pay Is Fast Becoming a Defining Challenge of Our Age

James Plunkett

This post originally appeared on the Huffington Post

You can tell a lot about a downturn by the image that comes to define it. From queues outside job centres in the 1970s and early 1980s to the poll tax riots that preceded the early 1990s recession, the pictures that stick in the mind have a habit of reflecting the key economic and political challenge of the time. So what will be the iconic image this time around? Images of last summers' riots will undoubtedly endure. But the more representative picture of the squeeze so far would be much less dramatic: a low paid, part-time worker, struggling in to work each day, bringing home a wage that barely pays the bills.

Today's new figures from the ONS confirm what's been suspected for some time: low pay is fast becoming one of the defining economic challenges of our age.

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The problem of low wage work runs far beyond workfare

Matthew Pennycook

This article originally appeared in the Huffington Post

The recent furore surrounding the UK government's Work Experience programme has centred somewhat narrowly on the rights and wrongs of large corporations benefiting from free youth labour. Largely absent from the debate has been the wider problem of low wage work in our economy. At a time of rising unemployment one could be forgiven for thinking that raising job quality and wages is hardly a priority. Yet there are good reasons for believing that, alongside the pressing issue of unemployment among low-skilled workers, improving low paid jobs will be one of the key routes to higher living standards in the next decade.

Precarious low paid work - often with little means of advancement - is now a key feature of labour markets in advanced economies throughout the world. A combination of factors have driven its onward expansion including declining worker bargaining power and technological advances that have driven down wages for tasks traditionally undertaken by low and medium-skilled workers while increasing the demand for low-skill, low-wage work in personal service sectors.

 

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