Top zero-hour contract Industries (Jan-March 2024)
The accommodation & food industry currently has the highest proportion of people working on zero-hour contracts (27%) followed by health and social work (18%).
Transport, the arts and other service industries come in third, with 19% in employment on zero-hour contracts. With these types of contracts set to be banned, these will therefore be the industries most affected.
|
Industry |
Total in employment on zero-hour contract |
Percentage of people in employment on zero-hour contracts. |
|
Production, including agriculture |
36,000 |
3.5 |
|
Construction |
41,000 |
4 |
|
Wholesale and retail |
88,000 |
8.5 |
|
Accommodation and food |
279,000 |
27 |
|
Information, finance, professional |
41,000 |
4 |
|
Admin and support services |
63,000 |
6.1 |
|
Public admin |
26,000 |
2.5 |
|
Education |
69,000 |
6.7 |
|
Health and social work |
187,000 |
18.1 |
|
Transport, arts, other services |
196,000 |
19 |
Shift working generation (Jan-March 2024)
Data shows zero-hour contract employment is overwhelmingly dominated by 16-24 year olds, making them the so-called ‘shift-working generation’. 10.5% of this age group are on zero-hour contracts, making them over five times more likely than adults aged 35-49 to be in this type of employment.
Some of these employees are likely students, who are unable to commit to a rigid work schedule due to study obligations; zero-hour contracts are therefore ideal for them.
Similarly, those aged 65 and over have the second highest percentage of people on zero-hour contracts (5%). Many people of this age group are retired from their full-time jobs and prefer to participate in flexible jobs without a strict schedule.
The rules coming into effect banning zero-hour contracts may adversely affect students and those over the age of 65 who prefer non-committal jobs to make a bit of extra money or stay busy.
|
Age |
Total in employment on zero-hour contract |
Percentage of people in employment on a zero-hour contract |
|
16-24 |
358,000 |
10.5 |
|
25-34 |
163,000 |
2.2 |
|
35-49 |
224,000 |
2 |
|
50-64 |
194,000 |
2.1 |
|
65+ |
73,000 |
5 |
Regional zero-hour contract hotspots (Jan-March 2024)
3.1% of the UK are on zero-hour contracts; this has increased 288% since 2020 (when it was only 0.8%.
The West Midlands, London and The North East are top three hotspots for zero-hour contracts.
According to Gov.uk data[2], London’s world-leading hospitality sector is worth £46bn as of Jan 2024, so it’s no wonder it is one of the UK’s hotspots for zero-hour contracts. The accommodation and food industry relies on zero-hour contracts to stay agile and reactive to cost of living and customer behaviours, however this is often at the expense of its employees who have to battle with irregular wages.
|
Region |
Total in employment on zero-hour contract |
Percentage of people in employment on zero-hour contract |
|
Whole of UK |
1,033,000 |
3.1 |
|
North East |
42,000 |
3.5 |
|
North West |
92,000 |
2.6 |
|
Yorkshire and The Humber |
83,000 |
3.2 |
|
East Midlands |
72,000 |
3 |
|
West Midlands |
127,000 |
4.4 |
|
East |
89,000 |
2.8 |
|
London |
169,000 |
3.6 |
|
South East |
134,000 |
2.8 |
|
South West |
94,000 |
3.3 |
|
Wales |
43,000 |
3 |
|
Scotland |
71,000 |
2.7 |
|
Northern Ireland |
16,000 |
1.8 |
Andy Elder, Uswitch business insurance expert, gives his advice for businesses preparing to operate without zero-hour contracts:
“Businesses preparing for a world without zero-hour contracts must prioritise flexibility through strategic workforce planning. This involves investing in employee training, fostering a culture of adaptability, and leveraging technology to optimise scheduling.
“By creating clear, predictable work patterns and engaging in transparent communication, companies can maintain operational efficiency and employee satisfaction without relying on zero-hour contracts”.
He has also given his advice for business owners in the meantime on how to protect both the physical and mental wellbeing of their employees on zero-hour contracts, or working shifts:
“Zero-hour contracts may become a thing of the past in the coming years, but in the meantime it’s important you protect the physical and mental wellbeing of employees on zero-hour contracts. This requires a varied approach that addresses the unique challenges these contracts present. Here are some strategies a business owner can implement:
Safe Working Environment
To ensure a safe working environment, all workplace safety standards must be met and regularly reviewed. It is important to provide personal protective equipment (PPE) where required and ensure all employees know how to use it properly. Regular assessments of workspaces should be conducted to prevent injury, especially for roles involving repetitive tasks or heavy lifting.
Training and Education
Comprehensive safety training and refreshers should be offered to all employees. Additionally, health awareness programs should educate employees on maintaining their physical health, including nutrition, exercise, and managing fatigue.
Flexible Scheduling
More predictable scheduling should be provided to help employees balance work and personal life. Adequate breaks must be ensured so that employees do not work excessive hours without rest.
Health Benefits
Consider offering access to healthcare services or benefits, even if not required by law. Provide a clear policy on sick leave and encourage employees to take time off when ill.
Mental Wellbeing
Foster a culture of open communication where employees feel comfortable discussing their concerns. Implement an Employee Assistance Program (EAP) to offer counselling and support.
Job Security and Fair Treatment
Clearly communicate policies and any changes to contracts or work expectations. Ensure zero-hour workers are treated fairly and equitably in comparison to full-time employees.
Training and Development
Offer training and development opportunities to help employees grow and advance. Regularly provide constructive feedback and recognise employees’ contributions.
Work-Life Balance
Allow employees to take mental health days when needed and monitor workloads to prevent burnout.
Community and Inclusion
Organise regular team-building activities to create a sense of belonging. Promote an inclusive culture where every employee feels valued and part of the team.
Practical Steps for Implementation
To effectively support zero-hour contract employees, here are some easy steps business owners can take immediately:
-
Schedule regular check-ins to understand employees’ needs and concerns.
-
Conduct anonymous surveys to gather feedback on their well-being and solicit suggestions for improvement.
-
Regularly review and update policies to ensure they meet employee needs.
-
Partner with local health services to provide resources and support for physical and mental health.
-
Train managers to recognise signs of stress and burnout, and equip them with the tools necessary to support their teams effectively.
