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Number of businesses using zero-hours contracts rises 6%

2nd Sep 2015 - 15:47
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Businesses using zero-hours contracts rises 6%
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The number of businesses using zero hours contracts in the hospitality industry has dropped from 45% to 39% in new figures released by the Office for National Statistics today.

Overall, the data shows a 6% increase in the use of zero hours contracts by UK businesses, to 1.5 million.

The data compares the number of businesses using zero hours contracts in January 2015 to the previous January. The ONS said that it is the first data that can be directly compared to a previous point in time, but also claims the rise in usage is ‘not statistically significant’.

It is also estimated that the number of people employed on zero hours contracts has risen by 19% to around 744,000, or 2.4% of the working population. However, the ONS has warned that this may reflect greater recognition of the term rather than new contracts themselves.

In the accommodation and foodservice sector, which encompasses the hospitality industry, figures fell for the number of businesses using the contracts, whereas in the education and production sectors figures rose to 25% and 8% respectively.

Of those working on zero hours contracts, 54% were women, 20% were in full time education, 34% were aged 16 to 24 and 6% aged 65 and over. Companies who employed 250 or more workers were more likely to use zero hours contracts.

The data also showed a worker on a zero hours contract worked an average of 25 hours a week, but 40% said they wanted more hours from their current job, rather than a different or additional one.

Paul Kenny, GMB general secretary, said: “All across the economy the deal employers are offering workers is seriously decreased while workers often have little alternative but to accept what is on offer but workers are fighting back.

“One example is the kitchens at Staverton Park Hotel near Daventry owned by the De Vere Group. GMB had to fight for permanent hours contracts for some of them who were on zero hour contracts for nearly four years.”
 

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PSC Team