Economic insecurity is ‘new normal’, with only 30% saying they live comfortably
Economic insecurity has become the “new normal” in the UK with at least 70% of the UK’s working population “chronically broke”, according to a study by the thinktank the Royal Society of Arts.
Thriving, striving or just about surviving, the RSA/Populus survey of more than 2,000 workers, found that while about 30% of respondents said they lived comfortably, 40% said their finances were permanently precarious. The remaining 30% said they were not managing to get by.
“Economic insecurity now stretches right throughout our labour market, including within jobs that appear safe on the surface,” said Brhmie Balaram, the author of the report and a senior researcher at the RSA.
According to the report, 32% of the UK’s workers have less than £500 in savings and 41% have less than £1,000. Almost 30% are concerned about their level of debt while 43% of workers do not have anyone in their household they could depend on to support them financially in the event of hardship. Fewer than half of employees (44%) feel they have progressed in their careers over the last five years; only 40% feel they have good opportunities to progress in future.
“From retail workers to warehouse operatives, and from care workers to cleaners, we are beginning to uncover the hidden millions who are chronically broke year in, year out,” said Balaram. “The real danger for this group of workers is a childcare bill unpaid and yet another rent rise around the corner.”
UK labour market statistics released on Wednesday showed employment reaching a record high last year. But, the RSA report makes clear, wider economic trends suggest workers are worse off as real wages fall and in-work poverty rises.
The RSA report identifies what it calls Britain’s “new class structure”. It also launched an online tool that lets people explore which “class” they fall into.
https://www.theguardian.com/money/2018/jan/25/uk-workers-chronically-broke-study-economic-insecurity
