WORKERS in rural Scotland are more likely to be in low-paid jobs than their urban counterparts, figures show.
According to the Office for National Statistics (ONS), almost one in five Scots is paid less than the Living Wage of £7.85 per hour.
However, that figure rises significantly in some rural areas where more than one quarter of employees struggle in jobs paying less than this figure.
In Angus, the worst-affected area, 33 per cent of jobs pay less than the Living Wage, amounting to 10,000 posts.
The situation is little better in East Renfrewshire, where 30.6 per cent of jobs are low paid, making up 5,000 positions.
And in third place is Dumfries and Galloway where 16,000 jobs – 28.8 per cent of all posts – are remunerated at less than the Living Wage.
Higher than the £7.20 National Living Wage proposed by Chancellor George Osborne, the figure for the Living Wage is based on research into the basic costs of life in the UK and more than 300 organisations are currently signed up to the scheme.
The Scottish Government aims to persuade 500 employers to sign up by March, lifting staff up from the current minimum wage of £6.50 per hour for over-21s and £5.30 for those aged 18-20.
However, the new ONS figures suggest there is still some way to go in easing in-work poverty, particularly in rural areas. In contrast, just 13.6 per cent of jobs are paid at lower rates in Scotland’s capital, amounting to 45,000 posts in Edinburgh.
Dundee had the second lowest rate at 15.1 per cent, or 12,000 jobs, while in Glasgow the level was 16.5 per cent, or 65,000 jobs. Frank McAveety, leader of Glasgow City Council, said: “If you are working then you should be able to afford to look after yourself and your family.
“It is obviously welcome that our city has one of the lowest rates for jobs that do not meet the standard; but we must not rest on our laurels.”
Angus Council did not respond to a request for comment, and East Renfrewshire Council said it would not comment on the actions of local businesses. However, Dumfries and Galloway Council Council said 4,000 people within its boundaries are affected by multiple aspects of deprivation, including income, employment and access to transport.
The local authority rolled out an anti-poverty strategy in June, when it became a Living Wage employer, and has pledged to encourage local firms to join up.
Council leader Ronnie Nicholson said: “Dumfries and Galloway is the lowest paid region in Scotland. I am proud that this council is playing its part in tackling that problem by delivering a Living Wage for our staff.
“But I want to see that rolled out to as many workers across our region through our partners and contractors. Therefore, we will be promoting Living Wage accreditation to all organisations in our region across the public, third and private sectors.”
A Scottish Government spokesperson said: “From a handful of accredited employers a little over a year ago, Scotland now has almost 350 organisations that guarantee an hourly rate of £7.85 for their staff aged over 18. This marks excellent progress in our aim to have 500 employers signed up by next March, but there is still more to be done.
“Today’s report is primarily about a changing methodology, but Scotland still compares well to other parts of the UK with over 80 per cent of employees paid the Living Wage or higher.”
THE BEST
City of Edinburgh, 13.6 per cent, 43,000 jobs
Dundee City, 15.1 per cent, 12,000 jobs
Glasgow City, 16.5 per cent, 65,000 jobs
Aberdeen City, 17 per cent, 25,000 jobs
South Lanarkshire, 17.9 per cent, 19,000 jobs
THE WORST
Angus, 33 per cent, 10,000 jobs
East Renfrewshire, 30.6 per cent, 5,000 jobs
Dumfries and Galloway 28.8 per cent,16,000 jobs
Perth and Kinross, 26.7 per cent, 16,000 jobs
Clackmannanshire, 26.3 per cent, 4,000 jobs
COMMENT: Figures prove that more bosses must start getting on board
THESE figures highlight the need to have more employers paying the Living Wage in Scotland. As new jobs are created it is important they are enough to provide people with a decent standard of living. It would appear from these figures that this is not the case.
We have seen real success with the number of accredited Living Wage employers in Scotland increase at a faster rate than any other part of the UK. This shows that many employers can and do want to improve the position of their lowest-paid employees. But we need more to step up and do the right thing.
The higher rate of national minimum wage for those aged over 25 will help some people, but it will not provide people with a real Living Wage. When the cuts to tax credits are considered then it is clear than many employers will have to do more to help their lowest paid employees. It is also clear from these figures that workers in more rural parts of Scotland are more at risk of being low-paid. It is critical that we do more in Scotland to address the needs of low paid workers in rural communities. These figures show that there are very clear patterns of low pay in Scotland, patterns that have existed for some time.
Not only is low pay more prevalent in rural parts of Scotland, but women and young workers remain at far higher risk of being paid less than the Living Wage. Around 29 per cent of women and around 58 per cent of 18-24 year olds outside of London were paid less than the Living Wage.
This is partly about the kinds of jobs and sectors that women and many young workers carry out. In ‘accommodation and food services’ 70 per cent of jobs outside of London paid less than the Living Wage, this is a sector that many young workers are employed.
The new analysis also found that 50 per cent of jobs in the care sector outside of London were paid less than the Living Wage. This updated analysis confirms the persistence of the patterns of low pay that we have seen for decades.
Women and young workers are at high risk and certain sectors are dominated by low paid employment. These figures should shock us, as they represent the failure of our economy to provide a decent standard of living for everyone.
We know the Living Wage can help provide that decent standard. We also know hundreds of employers across Scotland have signed up to guarantee the Living Wage to their staff. If we are to break this cycle of low pay then it is clear many more employers have to recognise the benefits of investing in their workforce through the Living Wage.
Peter Kelly, director of The Poverty Alliance
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