Labour market· Intergenerational Centre Graduates and the young are spearheading a decline in regional mobility 15 August 2017 by Stephen Clarke It is often assumed that the millennial generation (broadly speaking those born in the 1980s and 1990s) spend all their money on holidays, avocado toast and iPhones, and are all cultivating ‘portfolio careers’ disdainful of the notion of a job for life. Like most stereotypes there is perhaps some truth in this. People are travelling … Continued READ MORE
Incomes· Living standards· Inequality & poverty Vast gaps in living standards between ethnic groups persist — and recent progress could yet be undone 10 August 2017 by Adam Corlett We talk a lot about certain types of income inequality—the recent outcry over unequal pay at the BBC springs to mind—but the specifics of ethnic economic inequalities rarely get enough air time. Though only scratching the surface of such a complex topic, my recent Resolution Foundation briefing on the gaps in household incomes for different ethnicities sought … Continued READ MORE
Living standards We let the 2007 financial crisis go to waste 9 August 2017 by Torsten Bell It’s not the time passing, it’s the opportunity for retrospection that kills you. Or at least that’s how it feels looking back a full 10 years to the day when I was working in the Treasury as we got the news that the French bank BNP Paribas had frozen funds exposed to US sub-prime mortgages. The … Continued READ MORE
Incomes· Living standards· Inequality & poverty Despite the economic gloom, living standards for BAME groups are finally catching up 9 August 2017 by Torsten Bell Good news is undervalued. Partly because it doesn’t make as good headlines and partly because there hasn’t been much of it around after a fairly grim decade since the financial crisis. So here’s some: since the turn of the millennium living standards gaps between different ethnic groups have been narrowing in Britain. Since 2002 White … Continued READ MORE
Can flexibility be made to work for workers? Insecurity over working hours and what to do about it 8 August 2017 by Gavin Kelly As the nature of work evolves then, sooner or later, so do the constraints and expectations that society eventually places upon employers. 19th century industrial politics were peppered with conflicts over factory conditions and the length of the working day, resulting in the Factory Acts. Much of the 20th century was shaped by the rise … Continued READ MORE
Labour market· Productivity & industrial strategy· Economic growth Taking stock of our industrial strategy 1 August 2017 by Stephen Clarke Recent electoral surprises, particularly the referendum last summer and last month’s general election, have been described as reactions against the economic status quo. The shocks have been greeted by politician promising no more business as usual. Theresa May has said that her government will create “a country in which prosperity and opportunity are shared right … Continued READ MORE
Labour market· Productivity & industrial strategy· Low pay Morrisons matters: we need an industrial strategy for pay packets 25 July 2017 by Torsten Bell Like excessively floral play suits, industrial strategy has made a comeback from that strange land we call the 1970s. It’s all the rage. The government has named a department after it. Jeremy Corbyn is so keen to set that strategy free of European rules and regulations, he wants to leave the single market over it. … Continued READ MORE
Low pay· Labour market· Pay The gender pay gap at the top of the BBC is making headlines, but what about pay at the bottom? 24 July 2017 by Kathleen Henehan Last week’s row over pay at the BBC has rumbled on through the weekend, and put the gender pay gap back at the top of the news agenda. With the gender pay gap still over 10 per cent, and unlikely to end any time soon given current trends, it’s good that this topic is leading … Continued READ MORE
Labour market Far from full employment 21 July 2017 by Stephen Clarke The recently released Taylor review was widely covered as an attempt to get to grips with the gig economy amid the growing sense that too much work in the UK was not ‘fair and decent’. The review comes on the back of five years of robust employment growth but stagnant wages and the proliferation of … Continued READ MORE
Labour market· Skills Five tests on which to judge the success of apprenticeships 19 July 2017 by Kathleen Henehan A few weeks ago, we wrote about the importance of paying attention to apprenticeship figures. And now we’ve had two days of debate and disagreement around apprenticeship figures, in particular how much they’re paid. So what’s been happening of late? In short, apprenticeship participation is up, and at higher levels of study. But we’re concerned … Continued READ MORE
Prices & consumption· Economy and public finances Inflation afflictions 18 July 2017 by Stephen Clarke The story of the last 12 months is that inflation has risen rapidly and eroded people’s living standards. From 0.8 per cent in June 2016 inflation is now 2.6 per cent. Despite the small welcome fall last month current projections suggest it will remain around this level for the rest of the year. The rise … Continued READ MORE
Household debt Time to put away the credit card 13 July 2017 by Toby Phillips The squeeze is on. National accounts data last month confirmed that household incomes have been falling for the last three quarters. Yesterday’s labour market statistics showed that wages continue to lose ground to inflation. And today new survey data from the Bank the England shows that credit availability is tightening. Today’s survey is the latest … Continued READ MORE
Labour market It’s good to focus on overtime, not just Uber 11 July 2017 by Torsten Bell When a government publishes a Big Review – and at 115 pages the Taylor Review certainly fits that bill – the temptation is to rush into the weeds of its very many recommendations. But before we do that it’s worth stepping back and considering how remarkable it is that we’re even here in the first … Continued READ MORE
Welfare It’s crunch time for Universal Credit – and big changes are needed 7 July 2017 by David Finch Calls for an end to austerity have dominated the media in recent days with the focus largely on removing the public sector pay cap. But from a living standards perspective, ongoing ‘austerity’ via cuts in Universal Credit (UC) will make a much bigger difference to those families affected. The roll-out of UC, which is set … Continued READ MORE
Living standards· Scotland A tale of two Scottish economies 5 July 2017 by Conor D’Arcy Imagine two economies. One has just announced strong economic growth, well ahead of the UK. Over time it’s become more productive relative to the UK and unemployment is as low as it’s been for decades. Then imagine another, in which GDP fell two quarters ago sparking fears of recession. In contrast to record employment across … Continued READ MORE
Labour market· Pay Wrestling with our squeeze fatigue 4 July 2017 by Torsten Bell Public sector pay is back on the front pages. Increasing it is Boris Johnson’s new big thing. Michael Gove is with him 100 per cent. The Brexit Britain boy band is back together and rather surprisingly singing from a trade union leader’s hymn sheet. In some ways this surge of political focus on rewards for … Continued READ MORE
Labour market· Low pay· Pay What does the minimum wage battle in Seattle mean for the National Living Wage at home? 30 June 2017 by Conor D’Arcy The old joke goes that if you laid all the economists in the world end to end, you still wouldn’t reach a conclusion. A little unfair maybe, but for those keeping track of the argument around two recent – and conflicting – papers on the move to a $15 minimum wage in Seattle, it probably … Continued READ MORE
Incomes· Living standards Incomes are falling, placing our economic growth on borrowed time 30 June 2017 by Matthew Whittaker Politics may be dominating the news agenda at the moment, but there’s a lot going on in the economy too. For those who care about living standards – and given the centrality of the issue to both the Brexit vote and the general election, that should include politicians – this week has been a … Continued READ MORE
Living standards· Wealth & assets Presentation from After Piketty book launch 29 June 2017 by Torsten Bell width=”595″ height=”485″ frameborder=”0″ marginwidth=”0″ marginheight=”0″ scrolling=”no” allowfullscreen=”allowfullscreen”> READ MORE
Labour market· Skills Apprenticeship participation reaches a record high – but wider adult education and training continues to decline 26 June 2017 by Kathleen Henehan Figures on apprenticeships and further education are unlikely to garner front-page headlines, particularly amidst the wider political turmoil and the commencement of Brexit negotiations. But the figures do matter. Skills and education can help to explain how we got here in the first place: lower levels of education, a sense of alienation and a feeling … Continued READ MORE
Labour market Britain’s labour market has passed peak insecurity 26 June 2017 by Torsten Bell Britain’s labour market is at a tipping point and about to enter a new phase, particularly as Brexit finally comes into view. Policymakers have consistently been behind the curve on these shifts. But if we can get to grips now with the changing world of work then we have a better chance of securing the full employment, … Continued READ MORE
Wealth & assets· Intergenerational Centre Britain has record levels of wealth – but how much wealthier are its citizens getting? 21 June 2017 by Conor D’Arcy Britain is very good at generating wealth. So much so that it’s now worth upwards of £11 trillion – or more than six times our national income. But we are awful at sharing it out: one in 10 adults own half the nation’s wealth. If not addressed, this could have disastrous consequences for the living … Continued READ MORE
Wealth & assets· Housing Five things you need to know about housing and wealth 21 June 2017 by Torsten Bell Visitors to the UK often complain that we talk about nothing but houses and house prices over dinner. They are wrong. The real problem, at least when it comes to public policy, is that we don’t talk nearly enough about housing and other forms of wealth. Our national debates tend to focus on the earnings, … Continued READ MORE
Labour market· Pay The gloomy outlook for pay will put austerity under further pressure 15 June 2017 by Matthew Whittaker In the five decades leading up the financial crisis in 2008, growth in real weekly earnings turned negative in just 51 months. Yet new figures mark the 72nd month of negative growth in the nine years since, with more on the cards throughout 2017. Today’s figures leave average pay – in annualised terms – more … Continued READ MORE
Public spending· Economy and public finances The end of austerity? 13 June 2017 by Torsten Bell Austerity is over, The Times tell us. Both the PM’s last chief of staff and her new one agree it’s gone too far. These are big shifts in language, on a subject that has dominated politics since 2010. But is austerity really over? And what are the crunch tests for deciding if the world … Continued READ MORE
