North East workers at greatest risk of downward mobility

People in the North East are at much greater risk of downward mobility than in any other part of the country, according to new research.

The Resolution Foundation indicated that earnings were the biggest contributor to living standards, but also found that individuals can no longer climb the social ladder solely based on this.

73% of those living in the North east had a greater risk of downward mobility, than individuals living in the capital, a problem attributed to the stagnation of wages, and a fall in the share of national income going to low-to-middle earners.

The report looked at the ‘peak earnings’ phase of a group who were in their 30s and 40s during the 1990s and 2000s.

Gender and experience of the job market were factored into the study, which focussed more on an individual’s ability to work their way up to a better standard of living in their own lifetime, as opposed to generational comparisons that have been made before.

Resolution Foundation suggested that between the 1990s and 2000s, London became the biggest focus for job growth in the types of industries that offer the greatest opportunities for earnings progression.

Experience of unemployment was also found to have a negative effect on wage levels, with spells of youth unemployment leaving a ‘wage scar’ on individuals as they moved into adulthood. 

Share your comments

Share this with a friend

Comments (0)