Characteristics of the low paying sectors

[ch 4: pages 23-24]

Activities with large number of workers on the NMW fall into certain specific groups:

• the largest of the groups where the NMW is prevalent, in employment terms, are the sectors dependent on consumer spending — retail, hospitality, leisure and hair and beauty;

• the next group of low-paying sectors are those directly affected by government funding, consisting of childcare and social care;

• the third group of low-paying sectors are more dependent on business-to-business activity. This includes cleaning, employment agencies, security and enforcement, transport, storage and call centres; and

• the final group of low-paying sectors considered are those that are more exposed to international trade, such as textile manufacturing, agriculture, and food and non-food processing.

Many workers in these sectors have indirect or non-standard employment relationships as they are outsourced, agency workers, on zero hours contracts or are other casual workers. This makes it harder for them to organise together and bargain with their employer.