Shrinking mid-wage jobs market forcing people into debt?

People may be being forced into debt because they are only being offered low-wage jobs, it has been suggested.

According to the Work Foundation, th…

People may be being forced into debt because they are only being offered low-wage jobs, it has been suggested.

According to the Work Foundation, the shrinking number of opportunities in the mid-wage range is causing competition for positions with less healthy salaries die to lack of options.

However, these low-skill jobs – such as food service handlers, customer service advisors and domestic cleaners – do not pay well and for those used to higher earnings, the reduced monthly pay could lead to people seeking loans to stay afloat financially.

At the same time, over-qualified candidates are being offered these roles over those better suited to them – causing more unemployment and debt risks.

The organisation revealed office administration and secretarial posts have been in decline, as have technical roles in plant processing and metal machine work – traditional mid-wage jobs.

Meanwhile, low wage positions such as those in the caring industry are on the rise.

Researcher at the Work Foundation and author of The Hourglass and the Escalator: Labour Market Change and Mobility Dr Paul Sissons said: "Those losing middle-skilled jobs and 'bumping down' into lower-wage work can experience both a loss of income and an under-utilisation of skills."

He added: "Workers who move into low-wage work often find it difficult to move up the career ladder. While for those with the fewest skills, the increased competition for low-wage jobs means many struggle to find employment at all."

This follows a report by the Consumer Credit Counselling Service, which revealed millions of UK households have been identified as financially vulnerable and at risk of debt.

By James Francis

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