1.4 million on zero hour contracts

Graham_Devon

The original esitmate by the ONS was 583,000. However, the actual study reveals there are 1.4 million zero hour contracts out there.

One in five health and social care jobs are now zero hour contracts.

There are also a further 1.3m contracts where no work is undertaken. The ONS said some of these will probably need to be added to the total zero hour contracts, but include agency staff, incorrect records, people on sick leave etc.

The contracts are more commonly used by large companies over smaller business.

http://www.theguardian.com/uk-news/2014/apr/30/zero-hours-contracts-uk-over-one-million-people

What's slightly concerning is that the numbers (should say estimates really) have risen 800% in just a couple of years.

vivatifosi

30.39m people in the UK work (latest stats release):

http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/april-2014/sty-employment.html

Not ideal, but not a total disaster either as its 4-5% of workforce. Plus some people prefer zero hours contracts. If only 14% of those surveyed with zero hours contracts were looking for another job, perhaps some people are happy with them, or not sufficiently unhappy to want to change.

http://www.bbc.co.uk/news/business-27219654

My personal view is that underemployment is the bigger issue.

antrobus

Graham_Devon wrote: »

... The contracts are more commonly used by large companies over smaller business.

The contracts are more commonly used by large public sector organisations rather than companies.

Graham_Devon wrote: »

...What's slightly concerning is that the numbers (should say estimates really) have risen 800% in just a couple of years.

Probably down to the exact definition of what constitutes a 'zero hour contract' and the fact that many employers 'don't know' whether a particular contract qualifies or not (and don't particularly care one way or another) and have therefore given the 'wrong answer' in previous surveys.

For example, the Guardian claims that it doesn't employ staff under zero hour contracts. However it does however employ casual workers who are paid a daily rate if they accept the offer of work for that day, which would be a zero hour contract in many people's books. It certainly meets the defintion that HMG uses.

Bantex_2

Is a person on a zero hours contract who is given no work, counted as employed or unemployed in the stats?

antrobus

The ONS report itself is available here
http://www.ons.gov.uk/ons/rel/lmac/contracts-with-no-guaranteed-hours/zero-hours-contracts/art-zero-hours.html

Which is useful, as it brings home a number of points that the Guardian has chosen not to understand.

The provisional estimate from the ONS survey of 5,000 businesses indicates that in January to February 2014 there were around 1.4 million employee contracts that do not guarantee a minimum number of hours, which provided work in the survey reference period of the fortnight beginning 20 January 2014.

So the ONS figure of 1.4 million is for employee contracts that do not guarantee a minimum number of hours and not what they regard as zero hour contracts.

The most recent estimate, published on 19 February 2014, of the number of people who are employed on “zero-hours contracts” in their primary employment, from the Labour Force Survey (LFS) of individuals in households, is 583,000, for the period October to December 2013. This relates specifically to the individual’s perceptions of whether they are employed on the specific type of contract – a “zero-hours contract”.

So the two figures of 1.4m and 583k are measuring different things and may well be consistent with one another. And most importantly;

In comparing both figures, it must be noted that they are both ‘point-in-time’ estimates, and that whilst the LFS data exists for several years back, the business survey data is the first estimate of its type. It is not, therefore, possible to say from the business survey whether the number of employee contracts without a guaranteed minimum number of hours of work is increasing or decreasing.

I wonder if the ONS will issue another rebuke to the Guardian?:)

antrobus

Bantex wrote: »

Is a person on a zero hours contract who is given no work, counted as employed or unemployed in the stats?

According to the ONS;

The employed are defined as those aged 16 or over, who are in employment if they did at least one hour of work in the reference week ..., and those who had a job that they were temporarily away from (for example, if they are on holiday).

I'd therefore conclude that a zero hours contract plus no work equals unemployed.

wotsthat

Graham_Devon wrote: »

What's slightly concerning is that the numbers (should say estimates really) have risen 800% in just a couple of years.

Percentages in excess of 100% and short timeframes should set off a BS alarm. I'd never use an increase of 800% to compare two numbers for fear of getting the sums wrong.

Such a number should alert us to problems with interpreting what a zero hours contract is rather than a stratospheric increase in their use.

Carl31

My wifes pretty much on zero hours, i think shes contracted for about 3 hours a week, but works about 20-25 it works out pretty well to be honest, i dont think its all bad, plus the industry she works in struggles to find staff, even though 'there are no jobs'

wymondham

In effect people on zero hour contracts could be said to be sort of self employed??

noh

I have three zero hours contracts with three different employers. They are all with small private sector companies.
I have these contracts because I asked for them rather than full time or fixed term. It works well for me.
Was I counted 3 times in the stats?

mayonnaise

Carl31 wrote: »

My wifes pretty much on zero hours, i think shes contracted for about 3 hours a week, but works about 20-25 it works out pretty well to be honest, i dont think its all bad, plus the industry she works in struggles to find staff, even though 'there are no jobs'

noh wrote: »

I have three zero hours contracts with three different employers. They are all with small private sector companies.
I have these contracts because I asked for them rather than full time or fixed term. It works well for me.
Was I counted 3 times in the stats?

See? It works for people.