Past, present and the future of living standards in the Sheffield City Region
-
Upload
resolutionfoundation -
Category
Government & Nonprofit
-
view
48 -
download
1
Transcript of Past, present and the future of living standards in the Sheffield City Region
Forging ahead or falling behind?Past, present and the future of living standards in the Sheffield
City RegionCraig Berry, Deputy Director at SPERI
Dan Jarvis, MP for Barnsley CentralJulie A Kenny CBE DL, Entrepreneur
Emma Stone, Director of Policy and Research at Joseph Rowntree Foundation Stephen Clarke, Research and Policy Analyst at the
Resolution FoundationTorsten Bell, Director of the Resolution Foundation
@resfoundation // #MetroMayor
2
Forging ahead or falling behind?
Past, present and the future of living standards in the Sheffield City Region
Stephen Clarke
January 2017
@stephenlclarke / @resfoundation
3
A disclaimer
In this research we have included in the Sheffield City Region the original four areas:• Barnsley• Doncaster• Rotherham• SheffieldAnd• Bassetlaw• Chesterfield
4
THE PAST
5
Industrial upheaval had a big impact upon the region, but by the early 1990s employment rate was similar to those in other cities
6
The 2000s was a period of strong economic growth
7
Growth was powered by service industries in particular
8
Growth was powered by service industries in particular
Health, social work,
construction and education
were all big contributors to
economic growth during
the period
Manufacturing shrank, but less
so than the in the rest of the
country
9
THE PRESENT
10
Sheffield’s recovery from the crisis has been sluggish
11
People are in work, but pay is low
12
The typical worker in the region takes home £43 less a week than a typical employee in the UK. A pay gap that is present in most parts of the region
13
THE PAY GAP1. WHO WORKS AND WHERE
THEY WORK2. HOW THEY WORK
(PRODUCTIVITY)
14
The pay gap is partly because the region has relatively more firms that tend to pay low – dragging down overall pay
Manufacturing is a big
employer in the region. 1.6%
more people are employed in
the sector compared to
other city regions
15
The pay gap is partly because the region has relatively more firms that tend to pay low – dragging down overall pay
Hourly pay in manufacturing in the region is
about £2 lower than the pay of the average UK
worker
16
It is also because the region has more workers with lower education levels, who tend to be paid less
17
Productivity explains the other half of the pay gap
18
Productivity is lower in most sectors
19
Productivity is lower in most sectors
The majority of sectors
contribute to the region’s productivity deficit, but
particularly the large sectors of
retail, manufacturing
and office admin
Only in education is productivity significantly
higher
20
Low pay acts as a drag on household incomes, although employment and low housing costs offset this
21
Although as with pay, household incomes vary across the region
22
THE FUTURE?
23
The NLW will reduce the number of low paid workers in the region
‘Low paid’ refers to
anyone paid below two-
thirds of the median wage
24
But will bring with it new challenges – particularly the need to help workers progress off the wage floor
25
In some sectors nearly 7 in 10 workers may be paid the legal minimum by 2020
26
MISSING OUT ON THE NORTHERN POWERHOUSE?
27
The region needs to get devolution back on track and take steps to raise pay
Priority 1: The form, powers and geography of devolution is a local decision, but opportunity should not be missed.Priority 2: Set up Sheffield Low Pay Commission to tackle low pay in the retail and leisure sectors in particular.Priority 3: Build on existing strengths, particularly growing student population
Forging ahead or falling behind?Past, present and the future of living standards in the Sheffield
City RegionCraig Berry, Deputy Director at SPERI
Dan Jarvis, MP for Barnsley CentralJulie A Kenny CBE DL, Entrepreneur
Emma Stone, Director of Policy and Research at Joseph Rowntree Foundation Stephen Clarke, Research and Policy Analyst at the
Resolution FoundationTorsten Bell, Director of the Resolution Foundation
@resfoundation // #MetroMayor