Discrimination & Caring: Impact on Older Women's Employment, Study notes of Forestry

Download Discrimination & Caring: Impact on Older Women's Employment and more Study notes Forestry in PDF only on Docsity! Older women and the labour market a report for the TUC Women's Conference Older women and the labour market ESAD/EERD/Mar 2013 2 Introduction Trade unionists have been increasingly concerned about the employment prospects of older women1 and the double discrimination they face. In addition, many older women have multiple caring responsibilities, looking after children, grandchildren and parents; combining this unpaid work with paid employment can be extraordinarily difficult. This report, produced for the 2013 TUC Women’s Conference, uses official data and draws on independent research to look at the position of older women in today’s labour market. Employment inequality and older women Age discrimination is a persistent problem for older women. Research in 2009–10 by Metcalf and Meadows found that, four years after the Employment Equality (Age) Regulations, 2 per cent of establishments still normally included a preferred age range in their job advertisements. Even more worrying were the facts that 42 per cent sought information on age in the recruitment process and 28 per cent made age information available to recruiters. The authors noted that, although only the first of these was unlawful in itself, “the potential for discrimination is illustrated by the finding that 23 percent of respondents thought that some jobs in their establishment were more suitable for certain ages than others.”2 Although there are some signs of improvements, gender inequality continues to characterise the labour market. The Equality and Human Rights Commission reports3 that: “Occupational segregation continues to feed pay differences, especially in the private and voluntary sectors where at age 40 men are earning on average 27% more than women. The large proportion of women in part-time jobs also contributes to this.” The full-time gender pay gap is smaller than it was but still stands at 9.6 per cent;4 part-time work is dominated by women and median hourly pay for women part- time workers (£8.12 an hour) was just 63.6 per cent of the median for men in full- time work.5 Research for BBC News in 20126 found that women hold less than one-third of all ‘top jobs’, including:  1.3 per cent of senior jobs in the armed forces  one eighth of High Court judges and above  one sixth of Directorships in FTSE 100 companies  the same proportion of chief police officers  one fifth of the Cabinet  30 per cent of senior managers in news media. Older women face multiple discrimination, with recent research suggesting that “the more disadvantaged identities someone has, the greater the pay penalty they suffer” and the age/gender combination is “particularly ‘toxic’ for women.”7 Earlier research, looking at employment disadvantage over a comparatively Older women and the labour market ESAD/EERD/Mar 2013 5 This is important because part-time wage rates are so much lower than full-time: Median gross hourly earnings (£ per hour, excluding overtime) by gender, April 2012 Men Women Full-time 13.27 12.00 Part-time 7.72 8.12 All 12.50 10.04 The majority of women over 50 in part-time work earn less than £10,000 a year. The average salary for all women over 50 is just over £15,000 – and it is less than £11,000 for women over 60. Older women and employment: European comparisons The European Union produces data on the employment of older workers, defined as aged 55–64. For the sake of brevity, this table only provides data for the larger Western European member states, with whom the UK is commonly compared. It shows that, by this standard, the UK had a comparatively high employment rate for older women in 2011, but growth had been slow by European standards. Employment rate of older women workers (%)16 Rank 2011 Change since 2001 Change since 2007 1 Sweden 68.9 Germany 23.6 Germany 9.6 2 Finland 57.2 Netherlands 18.4 Netherlands 6.3 3 Denmark 55.3 Belgium 16.1 Belgium 5.6 4 Germany 53.0 Austria 14.5 Spain 5.6 5 UK 49.6 Ireland 14.2 Italy 5.1 6 Netherlands 46.4 Spain 13.9 Austria 4.9 7 Ireland 42.9 Finland 12.2 EU 4.3 8 Portugal 42.1 EU 12.0 Ireland 3.3 9 EU 40.2 Italy 11.9 France 3.1 10 France 39.1 France 11.3 Denmark 2.4 11 Spain 35.6 UK 6.6 Finland 2.2 12 Austria 32.9 Denmark 5.6 Sweden 1.9 13 Belgium 31.6 Sweden 4.9 UK 0.7 14 Italy 28.1 Portugal 1.8 Portugal -1.9 Older women and employment: the change over 20 years Although older women are disadvantaged in the contemporary labour market, this should not obscure the substantial improvements that have taken place. The Labour Force Survey, the source for the monthly employment headlines, has been collecting data for employment broken down by age and gender since 1992. Comparisons with the labour market then are quite enlightening, as the UK was also emerging from a recession and a large decline in employment. Between September and November 1992 and September and November 2012, over-50s accounted for 72 per cent of the growth in the employment of women:17 Older women and the labour market ESAD/EERD/Mar 2013 6 Employment levels of women under & over 50, 1992 & 2012, (000s) Under 50 50 and over Total 1992 9,202 2,272 11,474 2012 9,835 3,917 13,752 Change 633 1,645 2,278 The working age population has grown, but this group has also seen the largest increase in its employment rate: Employment rates, 1992 and 2012 Age group Gender Sep–Nov 1992 Sep–Nov 2012 Change (percentage points) 25–35 Women 64.5 71 6.5 25–35 Men 82.6 86 3.4 35–49 Women 72.7 76.2 3.5 35–49 Men 86.2 88.1 1.9 50–64 Women 46.9 61 14.1 50–64 Men 64.9 72.5 7.6 65+ Women 3.3 6.6 3.3 65+ Men 7.8 12.5 4.7 This table excludes young people, where the figures are complicated by the large increase in the numbers staying in full-time education. We can see that, in each age group the employment rate is higher for men in both 1992 and 2012. More significant, however, is the change that has taken place. Except for the over-65s, the increase has been much more marked for women than for men (and note that 65 is well over women’s state pension age). For both men and women, employment rates have grown most substantially for the 50–64 age group. The 14.1 per cent increase for women in this age group is especially marked and the employment rate for women in this age group is now not much below that for the 25–35 age group twenty years ago. This change has been accompanied by a complementary change in “economic inactivity” – people who are not in employment but who are not classified as unemployed because they have not looked for paid work recently or are not able to start at short notice. In Sep–Nov 1992, 50.7 per cent of women in this age group were economically inactive; twenty years later, this figure had fallen to 36.8 per cent. The fall for men in this age group, by contrast, was from 26.7 to 23.1 per cent. Older women and employment: the change since 2008 Over twenty years the labour market has improved, but in recent years, the dominant story has been the recession of 2008–9 and the combination of Older women and the labour market ESAD/EERD/Mar 2013 7 stagnation and recession since 2010. Understanding what has happened in these years requires a little detective work – figures that, at first seem to continue the positive long-term story actually are the result of the raising of women’s state pension age. But first, we need to see the positive story. Using recent data and those for five years ago allows us to compare the labour market now with the eve of the recession. Employment rates by gender (%) Men Women Sep–Nov 2007 Sep–Nov 2012 Change Sep–Nov 2007 Sep–Nov 2012 Change Aged 25–34 88.6 86 -2.6 72 71 -1.0 Aged 35–49 88.8 88.1 -0.7 75.9 76.2 0.3 Aged 50–64 73.1 72.5 -0.6 58 61 3 Aged 65+ 10 12.5 2.5 4.7 6.6 1.9 There is a clear pattern to changes in employment rates: at all ages men have higher employment rates than women both now and five years ago and men and women in what is sometimes referred to as the ‘prime employment age’ (25–49) have higher employment rates than those over 50. But the direction of change is the reverse of this pattern, following the longer term trend, with employment rates rising for over-50s and for women and for women aged 50–64 most of all. Another way of thinking about this is that the gap in employment rates between men and women has shrunk for all age groups and for the 50–64 age group most of all: Gender employment rate gaps Sep–Nov 2007 Sep–Nov 2012 Change Aged 25–34 16.6 15.0 -1.6 Aged 35–49 12.9 11.9 -1.0 Aged 50–64 15.1 11.5 -3.6 Aged 65+ 5.3 5.9 0.6 However, this change should not be taken at face value. Women’s economic inactivity We have to look at the three main labour market categories: employment, unemployment and ‘economic inactivity’. In addition, we have to take into account the changes in the total number of women – this has been growing, especially for older women. These figures are shown in the table below. Just 29 per cent of women aged 16–64 are aged over 50, but they account for 69 per cent of the increase in the total female population in this period. Without over-50s, the number of women under 65 in employment would have fallen by 155,000 but over-50s make up just 12 per cent of the increase in women’s unemployment. Older women and the labour market ESAD/EERD/Mar 2013 10 Older women’s patterns of employment The table below shows three broad age groups and the proportions employed in major occupational groups in 2012. Older women are significantly more likely to be employed in administrative and secretarial occupations than other women, but otherwise the similarity to the 25–49 age group is the most noticeable feature. Women’s occupations by age group, 2012 16–24 25–49 50–64 Total Managers, directors and senior officials 2% 8% 8% 7% Professional 7% 24% 20% 20% Associate professional and technical 8% 15% 10% 13% Administrative and secretarial 14% 17% 23% 18% Skilled trades 1% 2% 3% 2% Caring, leisure & other 21% 15% 15% 16% Sales & customer service 25% 9% 9% 11% Process, plant and machine operatives 1% 2% 2% 2% Elementary 21% 8% 10% 11% Total 100% 100% 100% 100% In 2008, 23 per cent of older women were employed in administrative and secretarial occupations and 20 per cent of all women, suggesting that this occupational category has become a less important employer of younger women. In 2012, 39 per cent of older women worked in the public sector, compared with 33 per cent for all women. On an industrial analysis, older women are heavily concentrated in administration, education and health, dominated by the public sector. Over half of all older women worked in this industry, a significantly higher proportion than for other age groups: Women’s employment by industry and age group, Apr–Jun 2012 16–24 25–49 50–64 Total Agriculture, forestry and fishing 0.4% 0.5% 0.9% 0.7% Energy and water 0.6% 0.9% 0.5% 0.7% Manufacturing 3.4% 5.8% 5.1% 5.3% Construction 0.8% 1.9% 2.0% 1.8% Distribution, hotels and restaurants 41.5% 16.8% 17.4% 20.3% Transport and communication 3.7% 4.6% 3.7% 4.2% Banking and finance 13.3% 17.3% 13.2% 15.7% Public admin, education and health 25.5% 46.8% 52.0% 45.2% Other services 10.8% 5.5% 5.2% 6.2% Total 100.0% 100.0% 100.0% 100.0% Older women and the labour market ESAD/EERD/Mar 2013 11 Older women’s redundancies are very heavily concentrated in this industry, accounting (in the summer of 2012) for 49 per cent of redundancies in this age group, compared with 27 per cent of women overall: Women’s redundancies, by age group, Apr–Jun 2012 16–24 25–49 50–64 Total Agriculture, forestry and fishing 0.0% 1.5% 0.0% 0.8% Manufacturing 13.0% 13.0% 3.4% 10.6% Construction 12.5% 5.6% 0.0% 5.7% Distribution, hotels and restaurants 37.2% 23.3% 18.5% 25.1% Transport and communication 3.7% 8.2% 6.8% 6.9% Banking and finance 22.6% 20.0% 12.2% 18.5% Public admin, education and health 11.1% 23.0% 49.2% 27.1% Other services 0.0% 5.4% 10.0% 5.4% Total 100.0% 100.0% 100.0% 100.0% Conclusion There is strong evidence that discrimination on the grounds of age and gender continues to disfigure the world of work and that older women in addition face multiple discrimination. Furthermore, older women carry a ‘double burden’ of caring for parents and grandchildren, which can substantially limit their ability to remain in paid employment. Despite this, older women have made substantial gains in employment over the past twenty years. Older women in this country have high employment rates by European standards. The government’s claims for improvements in recent years, however, are exaggerated and the decline in older women’s ‘economic inactivity’ is almost certainly the result of the raising of women’s state pension age, rather than any significant improvement in the functioning of the labour market. Older women are even more likely to be employed in the public sector than younger women. All women are at risk from the government’s public sector cuts, but this is an even bigger threat to older women. Redundancies in the public sector are already a bigger threat to older women than to women in other age groups and the majority of cuts have not yet been implemented. Austerity is a real and serious threat to older women and their families. Older women and the labour market ESAD/EERD/Mar 2013 12 References 1 There is no official definition of “older”; this report focuses on women aged 50–64 (except in the case of the European comparisons, which follow the EU in looking at women aged 55–64). 2 Second Survey of Employers’ Policies, Practices and Preferences Relating to Age, Hilary Metcalf and Pamela Meadows, BIS & DWP, Employment Relations Research Series No. 110, 2010, p. xvi, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32183/10- 1008-second-survey-employers-age.pdf 3 How fair is Britain? The first Triennial Review, EHRC, 2010, p 380, http://www.equalityhumanrights.com/uploaded_files/triennial_review/how_fair_is_britain_ ch11.pdf 4 “Gender pay gap falls to 9.6% in 2012”, ONS press release, 22 Nov 2012, http://www.ons.gov.uk/ons/dcp29904_288163.pdf 5 Annual Survey of Hours and Earnings, 2012 Provisional Results, ONS, 22 Nov 2012, http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/2012- provisional-results/stb-ashe-statistical-bulletin-2012.html 6 “Women hold fewer than third of top jobs – BBC research”, BBC News website, Gerry Holt, 29 May 2012, http://www.bbc.co.uk/news/uk-18187449 7 The Snowballing Penalty Effect: Multiple Disadvantage and Pay, Carol Woodhams, Ben Lupton and Marc Cowling, presentation at conference “Democratising Diversity Management in Europe: Future research directions and challenges”, 12 November 2012, http://www.kent.ac.uk/kbs/ecg/news-events/documents/Woodhams%20- %20Presentation%20-%2012%20Nov%202012.pdf 8 Persistent Employment Disadvantage, Richard Berthoud and Morten Blekesaune, DWP Research Report 416, 2007, p 91, http://webarchive.nationalarchives.gov.uk/+/http://www.dwp.gov.uk/asd/asd5/rports2007- 2008/rrep416.pdf 9 Unfinished Business: Barriers and opportunities for older workers, Giselle Cory, Resolution Foundation, 2012, p. 34, http://www.resolutionfoundation.org/media/media/downloads/Unfinished_Business_FINA L_2.pdf 10 Ibid, p. 3. 11 Factors Affecting the Labour Market Participation of Older Workers, Alun Humphrey, Paddy Costigan, Kevin Pickering, Nina Stratford and Matt Barnes, NatCen and IFS for DWP, Research Report 200, 2003, http://research.dwp.gov.uk/asd/asd5/rports2003- 2004/rrep200.pdf 12 Factors Affecting the Labour Market Participation of Older Workers: Qualitative research, Pat Irving, Jennifer Steels and Nicola Hall, ECOTEC for DWP, Research Report 281, 2005, p. 4, http://research.dwp.gov.uk/asd/asd5/rports2005-2006/rrep281.pdf 13 Informal Childcare: Choice or Chance?, Jill Rutter and Ben Evans, Daycare Trust, 2011, p. 53, http://www.daycaretrust.org.uk/data/files/informal_childcare_march_2011_final.pdf 14 Grandparents Plus response to BIS consultation on Modern Workplaces, 2011, http://www.grandparentsplus.org.uk/wp-content/uploads/2011/04/Consultation-response- to-Modern-Workplace-August-2011.pdf 15 Women over 50: work and pay, TUC, Feb 2013, http://www.tuc.org.uk/tucfiles/542/AgeImmaterialBriefing1.pdf 16 Eurostat data, EU averages are for 27 member states 17 Data in the following tables is taken from the Labour Force Survey. 18 “Grayling: Signs of labour market stabilising – big challenge still ahead”, DWP press release, 14 March 2012, http://www.dwp.gov.uk/newsroom/press-releases/2012/mar- 2012/dwp025-12.shtml