The Commissioners

Chair’s Foreword

Executive Summary

Recommendations

List of Figures

List of Tables

1. Introduction

2. National Minimum Wage in a Recession

3. Low-paying Sectors and Small Firms

4. Particular Groups of Workers

5. Young People

6. Apprentice Minimum Wage Rate

7. Compliance and Enforcement

8. Setting the Rates

Appendices

Abbreviations and Glossary

Select Bibliography

2.1

Comparison of Output Growth in Previous Recessions, UK, 1979–2009

2.2

Price Inflation, UK, 1998–2009

2.3

Median Pay Settlements, GB, and Price Inflation, UK, 1998–2009

2.4

Distribution of Pay Settlements, UK, 2000–2009

2.5

Average Earnings Growth, GB, and Price Inflation, UK, 1998–2009

2.6

Annual Change in Output, Employment, Jobs and Hours, UK, 1979–2009

2.7

Growth in Productivity and Unit Labour Costs, UK, 1977–2009

2.8

Employment, ILO Unemployment and Standardised Claimant Count, UK, 1997–2009

2.9

Average Earnings Growth, GB, and Price Inflation, UK, in Previous Recessions, 1979–2009

2.10

Private Sector Financial Balances, UK, 1990–2009

2.11

Total Profit Share and Non-oil Non-financial Profit Share, UK, 1955–2009

2.12

Insolvency Level and Rate, England and Wales, 1984–2009

2.13

Increases in the Real and Relative Value of the Adult National Minimum Wage, UK, 1999-2009

2.14

Hourly Earnings Distribution for Employees Aged 22 and Over, UK, 2009

2.15

Annual Increase in Hourly Earnings for Employees Aged 22 and Over, by Percentile, UK, 1992–2009

3.1

Characteristics of Minimum Wage Jobs, UK, 2009

3.2

Number and Proportion of Minimum Wage Jobs, by Low-paying Industry, UK, 2009

3.3

Proportion of Employee Jobs Held by Those Aged 18 and Over Paid Below, At and Above the Adult National Minimum Wage to £6.00 Per Hour, by Sector, UK, 2009

3.4

Proportion of Employee Jobs in the Retail Sector Held by Those Aged 18 and Over Paid At the Adult National Minimum Wage, UK, 2008–2009

3.5

Output Growth, UK, and Employee Jobs, GB, in the Hospitality Sector, 2007–2009

3.6

Proportion of Employee Jobs in the Hairdressing Sector Held by Those Aged 16 and Over Paid Below, At and Above the Adult National Minimum Wage, by Firm Size, UK, 2008–2009

3.7

Output Growth, UK, and Employee Jobs, GB, in the Textile and Clothing and Food Processing Sectors, 2007–2009

3.8

Change in the Number of Employees, by Firm Size, UK, 2007–2009

4.1

Proportion of Workers Covered by the October 2009 National Minimum Wage Upratings, UK, 2009

4.2

Hourly Median Gender Pay Gap of Full-time Workers, by Age, UK, 1998 and 2008–2009

4.3

Proportion of Workers Covered by the October 2009 National Minimum Wage Upratings, by Age, UK, 2008–2009

4.4

Hourly Pay Gap Between White and Ethnic Minority Workers, UK, 2008/09

4.5

Change in Employment, Unemployment and Inactivity Levels Throughout the Recession, by Ethnic Group, UK, 2008–2009

4.6

Change in Employment Rate and Level Throughout the Recession, by Country of Birth, UK, 2008–2009

5.1

Employment Rate of 18–22 Year Olds Not in Full-time Education, by Age, UK, 1999–2009

5.2

Unemployment Rate of 18–22 Year Olds Not in Full-time Education, by Age, UK, 1999–2009

5.3

Change in Employment Level and Rate, by Age, UK, 2008–2009

5.4

Quarterly Change in Employment Rate, by Age, UK, 2008–2009

5.5

Economic Activity of 16–17 Year Olds Not in Full-time Education, UK, 1993–2009

5.6

Economic Activity of 18–20 Year Olds Not in Full-time Education, UK, 1993–2009

6.1

Distribution of Apprenticeship Starts, by Sector and Country, 2007/08

6.2

Average Duration of Apprenticeships, by Sector and Level, England, 2006/07

6.3

Median Weekly Pay for Apprentices, by Country, Age, Level and Year of Study, UK, 2008/09

6.4

Average Apprentice Pay Rates and Gender Split, by Sector, England, 2007

6.5

Apprenticeship Hours Spent Working and Training (On- and Off-the-job), England, 2007

6.6

Distribution of Apprentice Weekly Gross Pay, by Age, Level and Sector, England, 2007

A3.1

Adult Minimum Wages Relative to Median Earnings, by Country, 2009