Young Brits to work longer than grandparents, earn less than parents
According to a report by insurance firm LV=, young Britons today can expect to work an average of nine different jobs over the course of their working lives – twice as many as their grandparents.
The report, which considered data from 3,000 employed and retired people, further found that due to the recent fall in real-term wages, new workers can expect to start work on a lower salary than their parents.
The concept of a “job for life” has been virtually eradicated, said the insurers.
The retirement age has also increased, with new workers expecting to retire seven years later than their grandparents. Almost a quarter of young workers can expect to work into their 70s.
Richard Rowley of LV= said the disappearance of the “job for life” was due to workers pursuing more varied career paths.
“The job for life is clearly a thing of the past, as more of us now move roles and even switch careers,” he said.
Rowley further said one factor contributing to the increased variation of jobs was the removal of workplace pensions, which had previously tied workers to long term jobs.
“The disappearance of generous workplace pensions that were ‘golden handcuffs’ for generations of workers is likely to be a key factor,” he added.
The study also found that inflation and a spike in the cost of living meant new workers are worse off than their parents, and can expect to earn a relatively lower salary.
A typical employee at one of the UK’s biggest 350 firms earns just under £1,534 each month. The latest figures show the average UK worker is just 8p a month better off than a year ago.
MPs scheduled a Commons debate on November 7 to discuss the significance of a living wage for Britons struggling to survive on the national minimum wage. The debate, however, was attended by a paltry 12 MPs.
Discussion surrounding Britain’s employment conditions comes as a report for the Resolution Foundation found the lowest paid workers are stuck in a “poverty trap.”
The report found only about 25 percent of workers receiving low wages in 2001 were able to secure a pay rise in real terms by 2014.
The report also states that those stuck on low incomes saw their pay packets increase by a mere 3.6 percent, while those on higher pay scales enjoyed increases of 7.5 percent.
There has been praise, however, for the nation’s 12 leading companies, which have made efforts to help young people find employment.
Companies, including Co-operative Food, Standard Life and Telefonica O2, promote links with schools and offer non-graduate jobs.
Deputy Prime Minister Nick Clegg said: “I believe that in a fair society, what counts towards your success should be the talent you have and how hard you work, not who your parents are or where you come from.”