united kingdom
statistical
profile no.18
united kingdom
statistical
profile no.18
january 2010
january 2010
united kingdom
Statistical Profile
Matt Flynn
introduction to united kingdom
Ireland
United Kingdom
France
About this Statistical Profile
Organizations striving to be
employers-of-choice in different
countries around the world need
access to current information about
the economic, social, political, and
demographic characteristics of the
countries where their employees live
and work.
The Country Profile Series focuses
on statistics that can guide decisionmaking at the workplace: workforce
highlights, economic highlights, and
population highlights. This Country
Profile is part of a set of resources
about the United Kingdom available
on the website of the Global
Perspectives Institute:
www.bc.edu/agingandwork.
Since 1992, the United Kingdom has had a relatively long period of economic growth
and stability. However, the impact of the global economy, increases in world fuel and
food costs, collapse of financial institutions, and the credit crunch have led to both a rise
in unemployment and fall in house prices which in turn has led to deflation. As late as
Autumn 2008, the Bank of England had been reluctant to lower the base rate, fearful of a
re-emergence of inflation. However, this policy was quickly reversed, and the base rate now
stands at 0.5%. The cut in the base rate, along with high levels of government spending
had been expected to stimulate consumer spending growth. However, the Bank of England
Governor has predicted a long period of slow economic growth.
In order to survive the current recession, British employers are presently cutting jobs,
particularly in the dominant financial and manufacturing sectors. Despite short term
pressures to reduce workforces, in the long term, employers face demographic changes
which will make skilled labour more scarce. Problems of labour and skills shortages which
became manifest during the period of rapid growth have persisted, particularly in the South
East. Unlike many of its European counterparts, the United Kingdom has a weak youth
apprenticeship and vocational training system, and labour shortages tend to be relieved
by bringing “contingent” workers (e.g. the very young, working parents, and older people)
into the labour market. Migration from new EU member states has also relieved labour
shortages, but as the recession takes hold, migrants are returning home. That said, the
United Kingdom has had more success than other European states in bringing in underrepresented groups such as older workers into the labour market.
Sponsored by:
agework@bc.edu
1
labor force highlights
àà 50% of the total the United Kingdom population is in the labour force.1
àà Approximately 83% of the workforce is economically active. Of the 17% of the workforce
that is inactive (defined as not in work, self-employment or ILO defined unemployed),
about a third of these would like to work if given the opportunity.1
àà The current (August 2009) unemployment rate is 7.8%. Long-term unemployment
has steadily fallen since the 1990s but has been creeping back since 2004.1
àà The United Kingdom has one of the highest rates of part-time work in Europe.
According to the Labour Force Survey, 8% of those who work part-time have no
other choice for work.1
àà The self-employment rate is 12.9%.1
Figure 1. Employed as Percentage of Total Population - Selected GNI Countries, 2007
42.0
Italy
Figure 1 compares the rate of
employment as a percent of the total
population in the United Kingdom
with other countries with high gross
national incomes. The employment
rates of the countries included in
Figure 1 range from 42% in Italy to
54.7% in Canada
44.7
France
United Kingdom
50.4
Germany
50.7
52.2
Japan
54.7
Canada
0%
10%
20%
30%
40%
50%
60%
Source: OECD. (2009a)2
Figure 2. Employment Rates, Ages 15-64 by Gender: United Kingdom and comparable OECD nations, 2007
Male
100%
Female
80%
68.6
77.8
77.2
74.7
70.7
78.4
81.7
80.0
73.2
70.1
63.2
78.4
78.0
79.6
65.9
64.4
66.3
66.1
68.1
59.5
59.4
60%
46.6
40%
20%
0%
France
Italy
Germany Canada
United
States
Sweden Austria
United Australia Netherlands Japan
Kingdom
Source: OECD. (2009b)3
2
http://www.bc.edu/agingandwork
The employment rates among
persons aged 15-64 years are
presented in Figure 2. 78.4% of men
and 66.3% of women in this age
group are employed in the United
Kingdom.
united kingdom
statistical
profile no.18
january 2010
The employment rates among
persons aged 15-64 years are
presented in Figure 2. 78.4% of men
and 66.3% of women in this age
group are employed in the United
Kingdom.
Figure 3. Employment Rates in the United Kingdom, within age group, 2008
100%
80.7
80%
82.1
82.0
66.5
58.2
60%
43.1
40%
20%
0%
15-19
20-24
25-34
35-44
45-54
55-64
Source: OECD. (2009b)3
Figure 4. Employment Rates in the United Kingdom Compared to Selected Regional Countries, within age group, 2007
100%
Most people who are currently
working are between 25 and 54
years old, however, there are clear
differences between the oldest and
youngest age groups. Most people
aged 55 to 64 years are working in
Sweden (70.1%), the fewest in Italy
(33.8%). Most people aged 15 to
24 years are working in the United
Kingdom (55.9%), the fewest in Italy
(24.7%).
Italy
France
Germany
Sweden
Austria
United Kingdom
80%
60%
40%
20%
15-24
25-54
55-64
Source: OECD. (2009b)3
agework@bc.edu
3
Figure 5a.Current & Projected Economically Active Population Estimates and Projections in the United Kingdom, within age group, 2007 and 2020
100%
84.2 84.9 84.2 85.3
80%
60%
74.9
56.1
84.6
85.2
85.6 85.7
85.7 86.9
82.6
2007
2020
86.2
78.2
73.7
72.8
53.1
44.7
48.2
40%
20%
6.6
0%
8.0
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+
Source:ILO. (2009)4
Figure 5b. Current & projected % of Total Population Economically Active in the
United Kingdom, 2007 and 2020
32.0
3.2
2007 Male
Under 20
21.5
20-44
2.8
25.7
2020 Male
2.5
30.2
2020 Female
2.3
2007 Female
0
17.1
23.3
24.2
10
45+
19.4
20
30
40
50
60
Source:ILO. (2009)4
Figure 6. Long term unemployed as % of workforce, 2008
3.5
3.0
Men
Women
2.5
2.0
1.5
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0.5
2008
1.0
Source:ILO. (2009)4
4
http://www.bc.edu/agingandwork
Long term unemployment has
steadily fallen as the 19801990’s industrial transition from
manufacturing to service related
industries has matured. High
levels of long-term unemployment
amongst blue collar male workers
have particularly fallen over the long
term. However, the cooling of the
UK economy of late has resulted in
a rise in both short and long term
unemployment.
united kingdom
statistical
profile no.18
january 2010
The UK has a higher rate of parttime working than most other
EU member states, outpacing
the Scandinavian countries, but
still behind Germany and the
Netherlands. In the UK, employees
with children aged eight or younger
(or disabled children 18 or younger)
or with eldercare responsibilities
have the right to request part-time or
flexible work arrangements, with the
employer having a right to refuse for
business related reasons.
Figure 7. Part-time working in the UK and across Europe, 2007
80%
75.0
Male
Female
70%
60%
50%
40%
45.8
44.1
42.3
40.0
36.2
31.2
30.2
30%
23.6
20%
13.5
12.5
10%
11.8
7.7
6.6
5.7
Poland
France
13.9
10.9
9.4
1.3 2.1
0%
Bulgaria
EU27
Denmark Sweden
United Norway Germany Netherlands
Kingdom
Source:Eurostat. (2008)5
Figure 8. Gender pay gap in the UK and across Europe, 2007
Gender pay gap is defined as the
difference between average gross
hourly earnings of male paid
employees and of female paid
employees as a percentage of
average gross hourly earnings of
male paid employees
Despite equal pay laws, the gender
pay gap in the UK remains one of the
highest in Europe.
24
25%
21
20%
10%
16
15
15%
9
22
11
5%
0%
Ireland
France
EU27
Sweden United Germany Cyprus
Kingdom
Source:Eurostat. (2008)7
agework@bc.edu
5
economic highlights
àà Gross Domestic Product per capita in the United Kingdom is $48,000. The UK GDP
growth has outpaced Western Europe’s since the 1990’s. However, the recession
has hit Britain particularly hard.3
àà GDP in the second quarter of 2009 shrank by 0.7%.2
Figure 9. GDP Growth
120
100
United Kingdom
EU15
G7 Countries
60
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007 q1
2007 q2
2007 q3
2007 q4
2008 q1
2008 q2
2008 q3
2008 q4
2009 q1
80
Source: OECD. (2009b)3
Figure 10.Total External Debt as Percentage of GDP, selected Regional Countries,
1992-2008
120%
United Kingdom
France
Italy
Germany
100%
80%
60%
40%
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
20%
Source: OECD. (2009a)2
Austria
6
http://www.bc.edu/agingandwork
The UK has seen higher levels of
growth in GDP and productivity
than most of Western Europe,
which has in turn led to low levels of
unemployment for most of the 21st
century (although now rising). This
has led to increases in labour market
participation of under-represented
groups such as older workers.
More recently, the UK has been hit
harder by the recession than its EU
and G7 counterparts, which may
lead to employers shedding their
contingent workforces.
united kingdom
statistical
profile no.18
Figure 11a.Labour productivity per hour labour
115
january 2010
105
United Kingdom
EU15
G7 Countries
Japan
95
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
85
1996
United States
1995
Labour productivity in the UK has
historically been low compared to
the US and Japan, in large part due
to low skill levels and limited capital
investment made by employers.
Source: OECD. (2009b)3
Figure 11b. Unit labour cost
Unit labour costs (ULC) measure
the average cost of labour per unit of
output and are calculated as the ratio
of total labour costs to real output,
indexed to 2000=100. Despite the
introduction of the Minimum Wage
in 2000 and new employment law
concerning annual leave, flexible
working, anti-discrimination and
working hours, labour unit costs
have increased at a slow pace similar
to that of the USA.
Japan
Germany
Austria
G7
Sweden
Korea
Finland
Euro area
OECD - Total
Belgium
France
Netherlands
United States
European Union
United Kingdom
Canada
Luxembourg
OECD - Europe
Denmark
Spain
Slovak Republic
Australia
Czech Republic
Italy
Cyprus
Slovenia
New Zealand
Norway
Ireland
Lithuania
Hungary
Bulgaria
Estonia
Latvia
Romania
0
50
100
150
200
250
300
350
400
Source: OECD. (2009b)3
agework@bc.edu
7
Figure 11c.Job vacancies
Luxembourg
Spain
Slovenia
Job vacancies is defined as the
number of job vacancies / (number
of occupied posts + number of job
vacancies)
Bulgaria
Slovakia
Hungary
Greece
Sweden
Latvia
Poland
Malta
Romania
Finland
EU27
EU15
Lithuania
United Kingdom
Estonia
Czech Republic
Germany
Cyprus
0
3
2
1
4
5
6
Source:Eurostat. (2008)7
Figure 11d. Hard to fill vacancies
Applicants lacking
required skills
45
Applicants lacking
required attitude
30
25
Lack of work experience
16
Lack of qualifications
37
Too little interest in the job
36
Low number of applicants
Competition from
other employers
18
21
Poor terms and conditions
15
Shift-work
9
Remote location
8
Poor career progression
Seasonal work
0%
3
10%
20%
30%
40%
Source:IES10
8
http://www.bc.edu/agingandwork
50%
Because of economic growth and
long periods of low unemployment,
employers have faced high labour
and skills shortages, especially
in London and the South East.
This has led to government and
employer organisations developing
programmes for encouraging
labour market participation of
under-represented groups: working
parents, older workers, people with
disabilities, for example. According
to a large survey of employers, there
are three reasons why vacancies
are difficult to fill: either the job
specifications are unattractive;
the labour pool is too small; or
recruitment drives are not attracting
the people with the right skills.
united kingdom
statistical
profile no.18
january 2010
demographic highlights
àà The United Kingdom population currently stands at 61.4 million.11
àà The United Kingdom is 92% White European.12
àà Total fertility rate indicates the number of children to be born to a woman during
her reproductive span of her life. The total fertility rate for women in the United
Kingdom was 1.41 in 2009.13
àà In 2009, 16.2% of the United Kingdom’s population was age 65 or older, compared
to 16.4% in France and 20.3% in Germany.13
Figure 12. Median Age, by Gender, Regional Comparisons, 2009
Germany
42.6
41.1
Male
41.8
39.6
39.1
France
Italy
Netherlands
United Kingdom
45.2
43.2
40.9
44.8
41.2
41.3
Female
0
Austria
38.0
10
20
30
40
50
Source: CIA13
Figure 13. Life Expectancy at Birth, Regional Comparisons, 2009
Male
Austria
France
Italy
Netherlands
United Kingdom
82.4
82.6
84.3
83.3
82.1
81.6
Female
0
Germany
76.3
76.6
77.8
77.3
76.8
76.5
20
40
60
80
100
Source: CIA13
agework@bc.edu
9
àà In the United Kingdom, 14.1% of the male population and 18.2% of the female
population is 65 or older.14 In comparison,
• In Germany, 18.9% of the male population and 23.1% of the female population
is 65 or older.
• In France, 13.9% of the male population and 18.7% of the female population is
65 or older.
Figure 14a. Population Distribution of United Kingdom, 2009
100+
95-99
90-94
85-89
80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
Male
10
8
6
4
2
0
Female
0
2
4
6
8
10
8
10
% of Population
Source: U. S. Census Bureau14
Figure 14b. Population Distribution of Germany, 2009
100+
95-99
90-94
85-89
80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
Male
10
8
6
4
2
0
Female
0
2
4
6
% of Population
Source: U. S. Census Bureau14
10
http://www.bc.edu/agingandwork
Figure 14c. Population Distribution of France, 2009
100+
95-99
90-94
85-89
80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
Male
january 2010
10
8
6
4
2
0
Female
0
2
4
6
8
10
% of Population
Source: U. S. Census Bureau14
Figure 15. Country of birth profile of UK workforce
35,000
30,000
EU8
EU14
25,000
N0n UK
UK
20,000
15,000
10,000
2008
2007
2006
2005
2003
2002
2001
2000
1999
1998
0
1997
5,000
2004
united kingdom
statistical
profile no.18
Note: EU14 defined as Ireland, Luxembourg, Netherlands, Belgium, Denmark, Sweden, Finland, France, Germany,
Italy, Austria, Spain, Portugal, Greece. EU8 defined as Czech Republic, Slovakia, Slovenia, Hungary, Poland,
Latvia, Lithuania, Estonia
Source: UK Labour Force Survey 20081
agework@bc.edu
11
references
1 UK Labour Force Survey (2008). Retrieved November 3, 2009, from: http://nesstar.esds.ac.uk/webview/index.jsp?v=2&mode=documentation&submode=abstract&study=http%3A%2F%2Fnesstar.esds.ac.uk%3A80
%2Fobj%2FfStudy%2F6199&top=yes
2 OECD. (2009a). Country statistical profiles. Retrieved November 3, 2009 from : http://www.oecd.org/statsport
al/0,3352,en_2825_293564_1_1_1_1_1,00.html
3 OECD. (2009b). Stat. Extracts. Retrieved November 20, 2009, from: http://stats.oecd.org/index.aspx
4 International Labour Office. (2009). LABORSTA internet. Retrieved November 3, 2009, from: http://laborsta.
ilo.org/
5 EUROSTAT. (2008). Retrieved November 3, 2009, from: http://epp.eurostat.ec.europa.eu/extraction/evalight/
EVAlight.jsp?A=1&language=en&root=/theme3/une/une_ltu_a
6 EUROSTAT. (2008). Retrieved November 3, 2009, from: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=t
able&init=1&language=en&pcode=tps00159&plugin=1
7 EUROSTAT. (2008). Retrieved November 3, 2009, from: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=t
able&init=1&language=en&pcode=tsdsc340&plugin=0
8 Oxford Economics. (2008). Retrieved August 25, 2009, from: http://www.oxfordeconomics.com/Free/pdfs/
oxfordeconomicspressreleasejan08.pdf
9 Eurostat. (2007). Retrieved November 3, 2009, from: http://epp.eurostat.ec.europa.eu/portal/page/portal/
product_details/metadata?p_product_code=JVS_A_ESMS
10 Institute for Employment Research (2003). National employers’ skills survey. Coventry: DfES.
11 ONS. (2009). Retrieved December 3, 2009, from: http://www.statistics.gov.uk/pdfdir/popnr0809.pdf
12 ONS. (2009). Regreived December 3, 2009, from: http://www.statistics.gov.uk/focuson/ethnicity/
13 Central Intelligence Agency. (2009). The CIA world factbook. Retrieved September 20, 2009, from: https://
www.cia.gov/library/publications/the-world-factbook
14 US Census Bureau. (2009). International data base. Retrieved December 2, 2009, from: http://www.census.
gov/ipc/www/idb/
12
http://www.bc.edu/agingandwork
united kingdom
statistical
profile no.18
january 2010
Country Context Team Leaders
Marcie Pitt-Catsouphes, Director, Sloan
Center on Aging and Work
Tay K. McNamara, Director of Research,
Sloan Center on Aging and Work
about the institute
Established in 2007 by the Sloan Center on Aging & Work at Boston College, the Global
Perspectives Institute is an international collaboration of scholars and employers
committed to the expansion of the quality of employment available to the 21st century
multi-generational workforce in countries around the world.
The Global Perspectives Institute focuses on innovative and promising practices that might
be adopted by employers and policy-makers.
The Institute’s research, publications, and international forums contribute to:
àà
a deeper understanding of the employment experiences and career aspirations of
employees of different ages who work in countries around the world;
àà
informed decision making by employers who want to be employers-of-choice in
different countries; and
àà
innovative thinking about private-public partnerships that promote sustainable, highquality employment.
Jungui Lee, Postdoctoral researcher,
Sloan Center on Aging and Work
The Sloan Center on Aging & Work at Boston College promotes quality of employment as
an imperative for the 21st century multi-generational workforce. We integrate evidence from
research with insights from workplace experiences to inform innovative organizational
decision making. Collaborating with business leaders and scholars in a multi-disciplinary
dialogue, the Center develops the next generation of knowledge and talent management.
The Sloan Center on Aging & Work is grateful for the continued support of the Alfred P.
Sloan Foundation.
Matt Flynn is a senior lecturer at Middlesex University. His research focus is on workplace age diversity.
He has carried out work for the European Union and UK government on the subject. He has written the
age diversity good practice guide for the UK Trades Union Congress and Chartered Institute for Personnel
and Development, and is currently conducting a study for the British Council comparing the experiences of
older workers in the UK and Japan. His work can be found at www.agediversity.org
agework@bc.edu
13
For additional Sloan Center publications, visit our website at www.bc.edu/agingandwork
Global Statistical Profile 01 - Japan
Global Statistical Profile 02 - United States
Global Statistical Profile 03 - Pakistan
Global Statistical Profile 04 - South Korea
Global Statistical Profile 05 - China
Global Statistical Profile 06 - Greece
Global Statistical Profile 07 - Armenia
Global Statistical Profile 08 - Italy
Global Statistical Profile 09 - Singapore
14
http://www.bc.edu/agingandwork
Global Statistical Profile 10 - Denmark
Global Statistical Profile 11 - South Africa
Global Statistical Profile 12 - India
Global Statistical Profile 13 - Kenya
Global Statistical Profile 14 - Australia
Global Statistical Profile 15 - Germany
Global Statistical Profile 16 - France
Global Statistical Profile 17 - Sweden