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Editorial

August 2010


Getting flexible - the response to challenging times

The news is full of signs that the economic crisis has been bringing about a change in attitudes to the way we work in the UK.  Here are 4 key indicators:

  1. A rise in part-time working - now 27% of the UK workforce

  2. A rise in temporary work - an 8% rise since 2008, now 5.8% of the workforce

  3. A rise in self-employment - up 4% since 2008, now 13.6% of the workforce

  4. Changes to working beyond current 'retirement age'

The rise in part-time working is the main reason for an overall rise in the number of people in work.  In part, this and the increase in temporary posts are a sign that employers are taking a cautious approach to coming out of the worst days of the recession.

A key element of the figures is that while most people who work part-time or in temporary contracts do so by choice, there is a marked increase in the numbers who are doing so out of necessity rather than choice. The key question is, when good times return, will the number of part-time and temporary workers fall again? Will people who have become self-employed abandon this in pursuit of security as an employee?

There may well be a fall in these categories of workers if we see the economy bounce back strongly.  If faced with full order books and possible labour shortages as good times return, the easiest thing for employers to do is to persuade their existing staff to become full time or permanent.

But there are 3 reasons why we will not swing back strongly to the old ways.

  1. Employers - except those with very short memories - will realise the advantages of keeping their labour costs as flexible as possible.

  2. Many people new to working part-time, temporary or as self-employed contractors will prefer to stick with these working arrangements if they allow them to have more control of their work and a better quality of life

  3. The changing structure of the workforce and the pensions crisis will mean that more people will be working later in life.  But they will want to do so on a more flexible basis.  As a society, we haven't yet worked out how to balance flexibility and security for working towards and beyond 'retirement age' (which will itself become a more flexible concept). But it's something that will emerge over the next few years.

The times demand that we change. The signs are that we are doing so in adversity.  The challenge is to keep it going when prosperity returns.