The Office for National Statistics (ONS) last week reported an increase of 19 per cent in the number of employees on zero-hours contracts over the last year.
Its latest estimate shows that in the period April to June 2015, 744,000 people reported that they were employed on zero-hours contracts, representing 2.4 per cent of people in employment. This is 120,000 (19 per cent) higher than the reported figure from the same period in 2014 when 624,000 or two per cent of people in employment were employed on these contracts. However, the ONS adds the caveat that it is not possible to say how much of the increase is due to greater recognition of the term “zero-hours contracts” rather than an upsurge in new contracts.
People on zero-hours contracts are more likely to be women, in full-time education or in young or older age groups when compared with other people in employment. On average, someone on a zero-hours contract usually works 25 hours a week. Around 40 per cent of people on a zero-hours contract wanted more hours, with most wanting them in their current job, rather than in a different or additional job.
The estimate from the third ONS survey of businesses also indicates that there are around 1.5 million contracts (about 4 per cent of all contracts) that do not guarantee a minimum number of hours (NGHCs), measured on work carried out in the fortnight beginning 19 January 2015.
These latest results can be compared with those for January 2014, providing an indication of the change in the number of NGHCs over a one year period for the first time. This latest estimate is about 91,000 higher than the 1.4 million estimate for January 2014, an increase of 6 per cent.
There is no single agreed definition of what “zero-hours contracts” are. While some contracts are explicitly called zero-hours contracts, there are other definitions available and used in published statistics. The common element to the definitions is the lack of a guaranteed minimum number of hours.
Iain Birrell of Thompsons Solicitors commented "The two figures in this report measure different things and cannot easily be compared – one counts contracts and the other counts people. The ONS warn that the increase to 744,000 may not be a real increase, but may simply represent more accurate reporting and the fact that two-thirds of those people have now been employed for over a year on these contracts. This is noteworthy of itself as it has always been a key response of business to say that zero hours contracts are used mainly to address short-term staffing needs. Also of interest is that the 1.5 million figure relates to jobs where work was actually done under these contracts in a specific fortnight. The report notes that there were another 1.9 million jobs where no work was done in that fortnight which suggests that zero hours contract arrangements actually cover up to 2.5 million jobs. The devil here is very much in the detail."
To read the ONS report in full, go to: http://www.ons.gov.uk/ons/dcp171776_415332.pdf