Tuesday, December 18, 2012

Under-employment

According to the TUC, about 270,000, or more than one in 10, Scottish workers are underemployed. That represents a 39% jump in the underemployment level in four years.

One view is that half a job is better than none. It keeps down the unemployment figures as workers accept part-time contracts in preference to redundancy and the unemployed take part-time work because it is all that is on offer.

Since last April low-income households have only qualified for tax credits (which are worth up to £3870 a year), if they jointly work 24 hours a week, with one partner working at least 16. Before April one partner working 16 hours was enough to qualify. The households caught in this trap are desperate for more hours but, in a tight labour market, they have difficulty getting them.



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