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Past, present and the future of living standards in the Sheffield City Region

Slides presented at Resolution Foundation event in Sheffield Town Hall 19 January

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Past, present and the future of living standards in the Sheffield City Region

  1. 1. Forging ahead or falling behind? Past, present and the future of living standards in the Sheffield City Region Craig Berry, Deputy Director at SPERI Dan Jarvis, MP for Barnsley Central Julie A Kenny CBE DL, Entrepreneur Emma Stone, Director of Policy and Research at Joseph Rowntree Foundation Stephen Clarke, Research and Policy Analyst at the Resolution Foundation Torsten Bell, Director of the Resolution Foundation @resfoundation // #MetroMayor
  2. 2. Forging ahead or falling behind? Past, present and the future of living standards in the Sheffield City Region Stephen Clarke January 2017 @stephenlclarke / @resfoundation 2
  3. 3. A disclaimer 3 In this research we have included in the Sheffield City Region the original four areas: • Barnsley • Doncaster • Rotherham • Sheffield And • Bassetlaw • Chesterfield
  4. 4. THE PAST 4
  5. 5. Industrial upheaval had a big impact upon the region, but by the early 1990s employment rate was similar to those in other cities 5
  6. 6. The 2000s was a period of strong economic growth 6
  7. 7. Growth was powered by service industries in particular 7
  8. 8. Growth was powered by service industries in particular 8 Health, social work, construction and education were all big contributors to economic growth during the period Manufacturing shrank, but less so than the in the rest of the country
  9. 9. THE PRESENT 9
  10. 10. Sheffield’s recovery from the crisis has been sluggish 10
  11. 11. People are in work, but pay is low 11
  12. 12. The typical worker in the region takes home £43 less a week than a typical employee in the UK. A pay gap that is present in most parts of the region 12
  13. 13. THE PAY GAP 1. WHO WORKS AND WHERETHEY WORK 2. HOWTHEY WORK (PRODUCTIVITY) 13
  14. 14. The pay gap is partly because the region has relatively more firms that tend to pay low – dragging down overall pay 14 Manufacturing is a big employer in the region. 1.6% more people are employed in the sector compared to other city regions
  15. 15. The pay gap is partly because the region has relatively more firms that tend to pay low – dragging down overall pay 15 Hourly pay in manufacturing in the region is about £2 lower than the pay of the average UK worker
  16. 16. It is also because the region has more workers with lower education levels, who tend to be paid less 16
  17. 17. Productivity explains the other half of the pay gap 17
  18. 18. Productivity is lower in most sectors 18
  19. 19. Productivity is lower in most sectors 19 The majority of sectors contribute to the region’s productivity deficit, but particularly the large sectors of retail, manufacturing and office admin Only in education is productivity significantly higher
  20. 20. Low pay acts as a drag on household incomes, although employment and low housing costs offset this 20
  21. 21. Although as with pay, household incomes vary across the region 21
  22. 22. THE FUTURE? 22
  23. 23. The NLW will reduce the number of low paid workers in the region 23 ‘Low paid’ refers to anyone paid below two-thirds of the median wage
  24. 24. But will bring with it new challenges – particularly the need to help workers progress off the wage floor 24
  25. 25. In some sectors nearly 7 in 10 workers may be paid the legal minimum by 2020 25
  26. 26. MISSING OUT ON THE NORTHERN POWERHOUSE? 26
  27. 27. The region needs to get devolution back on track and take steps to raise pay 27 Priority 1: The form, powers and geography of devolution is a local decision, but opportunity should not be missed. Priority 2: Set up Sheffield Low Pay Commission to tackle low pay in the retail and leisure sectors in particular. Priority 3: Build on existing strengths, particularly growing student population
  28. 28. Forging ahead or falling behind? Past, present and the future of living standards in the Sheffield City Region Craig Berry, Deputy Director at SPERI Dan Jarvis, MP for Barnsley Central Julie A Kenny CBE DL, Entrepreneur Emma Stone, Director of Policy and Research at Joseph Rowntree Foundation Stephen Clarke, Research and Policy Analyst at the Resolution Foundation Torsten Bell, Director of the Resolution Foundation @resfoundation // #MetroMayor

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