Record numbers of zero-hours contracts are holding back workers’ pay, Labour warns

ONS Labour Market Statistics published this morning revealed that a record-busting 1.13 million workers were on zero hour contracts in October to December 2022. [1]

New Labour analysis found that workers on zero hour contracts are working on average 12.9 fewer hours a week than other employees, [2] leading to warnings from the Labour Deputy Leader Angela Rayner that the record numbers of zero hour contracts are “holding back wages”. 

16-24 year olds were the age group most likely to be on zero hour contracts, with a record 11.7% of young people in employment on a zero hour contract. This compared to just 2.4% of 50-64 year olds, 1.9% of 35-49 year olds and 2.7% of 25-34 year olds. [3]

The latest statistical bulletin also showed that 4.7% of those on zero hour contracts were looking for additional work, compared to only 0.7% of the rest of the workforce. The proportion of workers on zero hour contracts seeking additional work increased by 2% year on year. [4]

The Government has failed to implement a series of landmark policies to tackle insecure work and modernise the UK’s labour market, including measures around zero hours contracts, five years after they were promised. [5]

Angela Rayner MP, Labour’s Deputy Leader and Shadow Secretary of State for the Future of Work, said:

“After 13 years of Tory broken promises on workers’ rights, it’s clear that record levels of insecure work is holding back pay and capping wages.

“Record numbers of working people are finding themselves on zero-hours contracts and not working enough hours to make ends meet. The Tories’ failure to deliver on their own pledges to improve work is hurting working people, businesses and the British economy.

“Labour’s New Deal for Working People will bring workers’ rights and protections into the twenty-first century, banning zero hour contracts and ensuring workers have contracts that reflect the hours they work. This will enhance security at work, help employers with recruitment and retention and boost pay and productivity.”

Ends

Notes to editors:

[1] Tab 1:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/emp17peopleinemploymentonzerohourscontracts 

• Number of people working on a zero hours contract in October to December 2022 = 1,133,000. 

• This is the highest level since records began.
  
  

[2] Tab 8:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/emp17peopleinemploymentonzerohourscontracts 

• Average (mean) actual weekly hours worked in main and second job by those on a zero hours contract between October - December 2022 = 18.6

• Average (mean) actual weekly hours worked in main and second job by those not on a zero hours contract between October - December 2022 = 31.5

• Difference in average weekly working hours between those on zero hours contracts and not = 12.9

[3]Tab 2:

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/emp17peopleinemploymentonzerohourscontracts 

[4] Tab 14:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/emp17peopleinemploymentonzerohourscontracts 

[5]https://www.mirror.co.uk/news/politics/tories-still-havent-delivered-zero-29149025