growing more quickly, or conversely falling less rapidly than employment changes across the whole economy, it is almost certain that the National Minimum wage must be having no negative effects on employment and job creation. In fact, the relative position of the low paying sectors as a whole is very encouraging. As the table below shows, the number of employee jobs in sectors with a high incidence of low pay and minimum wage jobs rose sharply by 4.8 per cent during the past year, far outstripping the very modest 0.4 per cent growth in the non-low paying sectors and playing a disproportionate part in the 1.7 per cent employee jobs growth seen across the whole economy. In particular, was strong jobs growth in the food and beverage sector, where employment rose by 151,000, whilst the very substantial retail sector put on extra 88,000 jobs. Indeed, only the sector seems to be still stuck in the employment doldrums, as others sectors such as hairdressing and even textiles increased by more than 9 per cent and agriculture soared by 17.5 per cent. Certainly nobody can say that the NMW had a detrimental impact last year, as 81 per cent of employee jobs growth in the last twelve months was located in the quarter of the economy that is occupied by the low paying industries. GB Employees in low paying industries (thousands) Industry March 2011 March 2012 Change Per cent change Agriculture, hunting and 165 194 +29 +17.5% forestry Textile, clothing and 93 102 +9 +9.7% leather goods manufacture Retail trade (not motor 2,680 2,768 +88 +3.3% vehicles) Hotels and 371 369 -4 -0.5% accommodation Food and beverage 1,350 1,501 +151 +11.2% service activities Residential care and 1,547 1,585 +38 +2.5% social work activities Investigation and 173 180 +8 +4.0% security services Services to buildings 607 628 +21 +3.5%
growing more quickly, or conversely falling less rapidly than employment changes across the whole economy, it is almost certain that the National Minimum wage must be having no negative effects on employment and job creation. In fact, the relative position of the low paying sectors as a whole is very encouraging. As the table below shows, the number of employee jobs in sectors with a high incidence of low pay and minimum wage jobs rose sharply by 4.8 per cent during the past year, far outstripping the very modest 0.4 per cent growth in the non-low paying sectors and playing a disproportionate part in the 1.7 per cent employee jobs growth seen across the whole economy. In particular, was strong jobs growth in the food and beverage sector, where employment rose by 151,000, whilst the very substantial retail sector put on extra 88,000 jobs. Indeed, only the sector seems to be still stuck in the employment doldrums, as others sectors such as hairdressing and even textiles increased by more than 9 per cent and agriculture soared by 17.5 per cent. Certainly nobody can say that the NMW had a detrimental impact last year, as 81 per cent of employee jobs growth in the last twelve months was located in the quarter of the economy that is occupied by the low paying industries. GB Employees in low paying industries (thousands) Industry March 2011 March 2012 Change Per cent change Agriculture, hunting and forestry 165 194 +29 +17.5% Textile, clothing and leather goods manufacture 93 102 +9 +9.7% Retail trade (not motor vehicles) 2,680 2,768 +88 +3.3% Hotels and accommodation 371 369 -4 -0.5% Food and beverage service activities 1,350 1,501 +151 +11.2% Residential care and social work activities 1,547 1,585 +38 +2.5% Investigation and security services 173 180 +8 +4.0% Services to buildings 607 628 +21 +3.5%
Written_Evidence_from_TUC_on_NMW_-_2013_Report.docx