Managers and professionals dominate new job growth

Relatively well-paying managerial, professional and semi-professional type jobs have grown faster than any other sort of work in the UK over the last decade, a new analysis from The Work Foundation reveals.

The report finds that far from there having been a boom in low-paying, low-skilled service sector work since the mid 1990s, in fact, low paying jobs have grown less significantly than ëgood jobsí at higher levels of the labour market.

The report finds that among men, managerial jobs grew by 12.73%, professionals by 8.13%, and associate professional jobs (such as nurses and computer technicians) by 16.98% between 1995 and 2005.

More striking still is that fact that the decade has seen more women move into managerial and professional work. Among women, the number of managers grew by 29.53%, professionals by 15.01%, and associate professionals by a huge 56.89% (although the overall numbers of workers in these categories remains relatively small ñ for example, women in associate professional roles comprised just 16 per cent of all workers in 2005)*.

Ian Brinkley, director of the knowledge economy programme at The Work Foundation and co-author of the report, said:

ëThe idea that the decline of manufacturing has meant the end of decent jobs paying decent wages for vast numbers of people is clearly unfounded. Economic change is never painless. However, a more knowledge-intensive world of work, where people work with their heads more than their hands, appears from these findings to be a relatively benign development for workers.

ëThe report challenges a hefty number of popular theories. In the 1990s, it was widely claimed that work and society were becoming more divided, while breaking into the elite would be nigh on impossible. That story no longer looks right. Instead, what seems to be happening is that, if anything, the world of work is upwardly mobile.

ëAlthough there has been some polarisation among men, with the growth of shelf-stacking, van-driving type jobs alongside the lawyers, accountants, and management consultants, overall the knowledge economy does not seem to be creating a new class divide. And among women in particular, there seems to have been a fairly smooth transition into higher skilled, higher paying work.í

The report also shows the impact of the spread of information technology on work. Administrative and secretarial work, traditionally the preserve of women, has fallen sharply, while personal service jobs ñ jobs which are by their nature immune to computerisation and off-shoring - have risen. And for men, process, plant and machine operative-type jobs have also fallen.

The chart depicts the principal changes in occupations in the UK (displayed as percentage point changes in employment share)

Insight into the nature of work in the UK can also be seen in the most popular low-paying and high-paying occupations (including both full and part-timers)**.

In 2005:

The top five low-paying occupations for women were: sales assistants; care assistants; educational assistants; kitchen and catering assistants and general office assistants.

The top five high-paying jobs for women were: marketing and sales managers; hospital and health service managers; personnel managers; primary and nursery teachers; and management consultants, actuaries, economists and statisticians.

The top five low-paying jobs for men were: sales and retail assistants; goods handling and storage occupations; kitchen and catering assistants; cleaners and domestics; labourers, builders and woodworking trades.

The top five high-paying jobs for men were: marketing and sales managers; ICT managers; construction managers; medical practitioners; and software professionals.

However, while it is jobs at the top have grown most quickly, the UK still has relatively large numbers of people in low skilled, low-paying jobs. Some 7 million jobs require no qualifications, while 26% of men and 35% of women earn below the median level of income.

Dr Rebecca Fauth, co-author of the report, said: ëThe knowledge economy deserves a reasonably clean bill of health. Contrary to the predictions, it does not appear to be creating a new underclass. From our analysis it seems that more workers are moving towards professional and managerial work over the last decade.

ëBut with labels like ëmanagerí there is always an issue of ëtitle-creepí ñ people calling themselves managers when ëadministratorí or ësupervisorí might be more accurate. Unfortunately, statistics do not really help with such issues.í

- ëEfficiency and labour market polarisationí by Rebecca Fauth and Ian Brinkley is available from The Work Foundation. The report is the third from the knowledge economy programme. Previous reports in the series are available.

- * Percentages computed by per cent in 2005 minus per cent in 1995 divided by per cent in 1995 ñ ie. the difference in percentages divided by the original percentage.

- **High-paying is defined as more than twice the median level of income in both 1995 and 2005. Low-paying is defined as 60% of the median level of income.

Ian Brinkley and Rebecca Fauth are available for interview.

- Media enquiries to Stephen Overell on 00 44 (0) 207 004 7224 or 07966 252724.

- The Work Foundation is an independent research organisation and consultancy.