Britain’s reputation as a job-creating machine was burnished a little more this week. Official figures showed joblessness in the UK at its lowest for 42 years. Not since 1975, when cinema-goers were terrified by Jaws and the nation voted to stay in the European Community, has the unemployment rate been as low as 4.3 per cent.
The numbers are even more remarkable for women. Almost 71 per cent of women aged 16-64 are in work, the highest proportion since records began in 1971, when the figure was less than 53 per cent. Of the net new 379,000 jobs created over the past 12 months, 239,000 of them were taken by women.
Women are taking paid full-time jobs as never before, and they are bagging six out of every ten new jobs on offer. Moreover, the trend has further to run. The OECD is projecting that by 2030 Britain will have as many women as men in work. The male employment rate, which was 92 per cent in 1971, is currently 80 per cent.
British women are significantly more likely to work than the majority of their sisters in the rest of Europe. By 2010 Britain ranked 8th out of 27 European nations for the proportion of women in work, according to Eurostat. The Scandinavian nations and Germany were higher, but the UK outpaced big economies such as France, Spain and Italy. Since then the gap is likely to have widened.
For some, it’s a bit of a paradox. Britain’s record in childcare provision and cost is regarded as relatively poor, especially compared with northern European nations. That makes it harder for parents with dependent children, usually mums, to work, but the figures show they are doing so as never before.
“The costs of childcare are diabolical compared to other countries,” Rachel Marangozov, senior research fellow at the Institute for Employment Studies, says. “We are one of the most expensive in Europe for childcare. Yet we do pretty well in terms of women in work. Only a few countries like Japan and Germany do better.”
For some, the figures mask the true picture of the kinds of jobs women are doing. Women are more likely to be in low-paid jobs with poor security, according to the TUC, which says that they account for 58 per cent of the increase in zero-hours contracts, agency work and other insecure jobs since 2011. “Whilst employment levels might be high, we are concerned about the quality of the jobs for women,” says Matt Creagh, a TUC employment rights policy officer.
Most economists view the increased participation rate of women as overwhelmingly positive for the economy. “It’s been the biggest driver of growth in household incomes over the past 20 to 30 years,” says Matt Whittaker, chief economist at the Resolution Foundation think tank.
Many factors have driven the rise in women in the workforce over the past few decades. Better opportunities, less gender discrimination, a change in attitudes and the desire of women for economic independence have all played a part. Economists say that the death of so much heavy industry and manufacturing — trades that favoured male muscle — and the rise of the service sector have had a big effect too.
Technological changes have helped. The internet has made it much easier to work from home, while the flexible working practices, though frustrating some people and concerning the TUC, have at least been a boon to mothers who want to set their own hours.
According to Mr Whittaker, government policy has played a big part too. Most of the growth in female employment over the past few decades has come from women with dependent children, in particular single parents. Tax credits, especially for those working more than 16 hours a week, have been especially potent. Changes to the qualification rules for jobseeker’s allowance have also boosted the number of single mums in work, while changes to maternity leave and the right to ask for flexible working have been significant too.
While the world of paid work has liberated women, not all of the increase is voluntary. The rising cost of living and the low level of wages has meant the arrival into the labour market for some women is far more down to economic necessity. Many couples and families have no choice if the mortgage or rent is to be paid. “How many households can survive on one income? Not many,” says Dr Marangozov.
Another notable factor has been the increase in the state pension age for women. The gradually raised age from 60 to 65 in recent years has forced some in their early 60s to postpone retirement. Women who expected to be able to afford to give up work at 60 are prolonging their working lives into their early 60s and sometimes beyond. According to the Office for National Statistics, that is a significant factor in raising women’s employment levels. Economic necessity as well as ambition and opportunity are pushing more women back into the country’s workplaces.
