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UK – Number of workers on zero-hours contracts reaches record high 910,000

03 March 2017

The number of people on zero-hours contracts (‘ZHC’s) in the UK has hit a record high of 910,000 according to the Resolution Foundation.

The data from the Resolution Foundation, which analysed the latest ONS (Office of National Statistics) Labour Force Survey figures covering the final three months of 2016 (Q4), shows that the record number of 910,000 is a jump of more than 100,000 since the final three months of 2015 (13% increase). It is also 30% higher than in Q4 2014.

However, the figures also reveal a slowing in the rate of increase in the last six months of 2016.

“While it’s preferable to compare the same quarters in different years to capture seasonal variations, it’s notable that the increase of 0.8% in the second half of 2016 compares to a 7.7% rise over the same period in 2015. Ever since zero-hours contracts hit the headlines the numbers have increased sharply every six months. The latest figures bring this run to an end," Conor D'Arcy, policy analyst at the Resolution Foundation, said.

The Resolution Foundation offers several explanations for the slowdown. Firstly, slower employment growth overall is likely to have played a role. Second, the ONS has frequently pointed to growing awareness among employees on these contracts as a factor in their rise. It may be that the majority of people on a zero-hours contracts now know it.

The Resolution Foundation states that a third explanation could be that, with the employment rate at a record high and the first inklings that firms may think the supply of labour from the EU could be limited after Brexit, it may be that finding people willing to work on these terms is growing tougher.

“Looking past these three potential labour market and statistical factors, it’s hard not to place this slowdown in the context of the consistently negative coverage zero-hours contracts have received,” D’Arcy said. “No employer wants to be the next Sports Direct, with their employment practices slated in the media and Westminster.”

“Whatever their exact contract terms, one trait many people share is a feeling of uncertainty in work, which the government is rightly seeking to address,” D’Arcy said. “Moves that would allow workers on ZHCs to have a contract guaranteeing them a specific number of hours a week, reflecting their typical working pattern, would be a helpful step. When it comes to work and living standards, making the schedules of employees more predictable would be a surprise many workers would welcome.”

The ONS will publish its own report on zero-hours numbers for Q4 2016 on 15 March 2017.