There has been much discussion of the need, and opportunity, to build back better following the Covid-19 crisis. While much of the focus has rightly been on responding to the coming unemployment crisis, there is also a sense that we need to grasp the opportunity to create a ‘new normal’ that addresses some of the long-standing inequalities in the UK labour market.

One recurring problem has been that of under-employment – where workers want and need more paid hours but are not able to secure them. In late 2020, it was estimated that more than 3.5 million UK workers were under-employed (approximately 8.7% of the labour force).

The consistently high numbers of people under-employed is a problem that needs a fix as we re-boot the UK economy post-Covid-19. A recent analysis of EU and US data by David Bell and David Blanchflower suggests that under-employment contributes to limited pay and career progression for some workers. This adds to a growing evidence base that under-employment can impact negatively on employees’ wellbeing; contributes to in-work poverty; and limits opportunities for learning and progression. These negative impacts on employees contribute to socio-economic inequalities and may undermine the performance and productivity of organisations, sectors and regions. So, understanding the drivers of under-employment is important. 

The Universities of Strathclyde and Portsmouth, funding by the ESRC Productivity Insights Network, have been researching the distinctive drivers and impacts of under-employment in different areas of UK, and how the workplace practices adopted by employers either contribute to or help to alleviate the problem. Head over to https://www.propelhub.org/matching-people-hours-and-jobs-building-back-without-under-employment/ for more on the research and to watch the research team discuss findings at a recent webinar.

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