Pay

Meeting:

Mayor's Question Time

Date:

Wednesday, 17 December 2014

Reference:

Question 2014/5918

Main question

Fiona Twycross

Please provide the GLA Economics estimates for both (a) the total number and (b) proportion of jobs in London that paid less than the London Living Wage in each year since your election in 2008?


Answer

The Mayor

Past Living Wage reports have used different data sources to report on the proportion earning below the London Living Wage. Please find below, and attached as Appendix G a table outlining these figures. Column A in the table shows the proportions of employee jobs in London that paid less than the London Living Wage each year since 2008 using data from the Annual Survey of Hours and Earnings (ASHE).  However, whilst a single data source has been used to answer this question it should be noted that there are discontinuities in the dataset over time (see notes). Applying the proportions to total employee jobs from the Workforce Jobs series (Column B), provides an estimate the total number of employee jobs in London paid below the London Living Wage (Column C).

Sources: Annual Survey of Hours and Earnings (ASHE) and Workforce Jobs series, Office for National Statistics

Notes:                                         

1. The ASHE figures are for employees aged 16 and over on adult rates of pay, whose pay for the survey pay-period was not affected by absence; pay is defined as gross pay per hour excluding overtime, shift premium payments and payments in kind.                                         

2. In Column A, the London Living Wage used is the one in place at the time of the survey, i.e. the one that was announced the previous year.                                         

3. Over the period shown here there are two discontinuities in the ASHE data: i) in 2011 when weighting of ASHE was affected by the move to the 2010 Standard Occupational Classification; and ii) in 2013 when the weighting of ASHE was adjusted to the 2011 Census. Together these increased the estimated proportion of employee jobs paid less than the London Living Wage by around half a percentage point.             

 

Attachments - 1

Appendix to answer Appendix G

Appendix G.pdf