What are the drivers of pay growth at the lower end of the labour market?

Background

To make work pay and create a resilient labour market that underpins economic growth, we are looking to continuing building the best evidence base to support businesses and people. This applies to employers of and workers with different cost requirements, characteristics, skills, and immigration status. We recognise these factors will have direct impacts on living standards, poverty, wage expectations, and ability to spend or save.

This theme focuses on building a skilled, empowered workforce, essential for inclusive growth and innovation. This in turn will raise living standards, create opportunities for all, through tackling poor working conditions, low pay, and poor job security. We have included questions that relate to driving trends for labour allocation, skills development and retention, technology deployment, and best practise for businesses.

The ability to nurture a strong labour market and support employment rights includes:
- modernising the UK labour market and strengthening employment protections
- entitlement to parental leave, establishing bereavement leave, facilitating flexible working and protection from unfair dismissal
- increasing protection from sexual harassment, identifying gender and menopause action plans, and strengthening rights for pregnant workers
- ensuring security and flexibility for workers and for working families
- empowering workers, trade unions and employers to negotiate fair pay, terms and conditions, and training standards
- increasing employment opportunities for disabled people and people with health conditions, supporting them to thrive as part of a workforce
- strengthening workers’ rights and empowering employees to speak out against unfair processes and helping to remove unnecessary restrictions

Next steps

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