JOBS
Good Jobs: The key to 80% employment
The UK is facing a significant employment challenge, not just in achieving higher employment rates, but also ensuring job quality and addressing regional disparities.
Ipsos MRP Model
Comparison data
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Key findings
Areas with a high concentration of degree-level jobs, typically around major cities like London, Oxford, Cambridge, Manchester, and Edinburgh, generally report higher satisfaction.
local authorities most satisfied with local job opportunities are clustered in the South East.
of people are satisfied with the availability of secure, well-paying local jobs.
satisfaction among people whose long-term health condition limits their ability a lot.
The Challenge
The UK's employment challenge isn't simply about numbers, but about the quality of jobs and addressing regional imbalances. While employment figures show approximately 33.3 million people in work as of September 2024, with a 75% employment rate for those aged 16-64, the true measure of success lies in providing access to secure, well-paying roles with opportunities for advancement.
Labour's goal of an 80% employment rate requires getting an additional 2 million people into work. This involves supporting the 1.5 million unemployed and engaging a large number of the economically inactive, 2.8 million of whom have long-term health conditions. This latter group has grown considerably since 2019, creating a significant obstacle to reaching the 80% target. Young people are another key demographic for Labour, with almost a million 16-24 year-olds currently NEET (Not in Education, Employment, or Training). This represents a substantial increase from a low of 745,000 recorded in 2021.
The UK faces a threefold employment challenge:
- Quality Jobs: Simply increasing job numbers is insufficient. The focus must be on creating high-quality jobs offering security, good pay, and career progression opportunities.
- Geographical Disparities: Employment challenges vary significantly across the UK. Some areas, particularly those outside major cities, lack high-quality opportunities, while others experience skills mismatches.
- Perceptions of Job Quality: Only a minority of people (22%) are satisfied with the availability of secure well-paying jobs in their local area. How people feel about local job opportunities matters. For example, if people perceive a lack of quality job opportunities, even if such opportunities exist, they may be less motivated to seek employment or invest in skills development. Conversely, a positive perception of local opportunities can boost job search activity and overall economic participation. This subjective element is crucial for policymakers to consider when designing interventions and evaluating their effectiveness.
The focus must be on creating high-quality jobs offering security, good pay, and career progression opportunities.
Job insecurity hotspots
Our MRP reveals significant variations in perceived local job quality and a clear correlation between satisfaction with local job opportunities and the prevalence of degree-requiring jobs.
Areas with a high concentration of degree-level jobs, typically around major cities like London, Oxford, Cambridge, Manchester, and Edinburgh, generally report higher satisfaction. Fifteen out of the top twenty most satisfied local authorities are in the South East. These areas often correspond with ONS classifications such as "Thriving Rural," "rural-urban fringe," and "inner cosmopolitan London", which also exhibit higher satisfaction.
Conversely, areas with a history of manufacturing or mining, or those in more rural locations, often report lower satisfaction, suggesting a lack of access to high-quality work. Net satisfaction is lowest Wales, with nine of the ten most dissatisfied council areas in Wales (-39%), but also in Cornwall (-56%), and some local authorities across the North of England (e.g. Redcar and Cleveland -48%, Hull -45%, Blackpool -44%).
This geographical disparity underscores the need for tailored interventions addressing the specific challenges of different areas. The relationship between job satisfaction and quality of work is also apparent when looking at different worker demographics. Individuals with degrees and higher incomes tend to be more satisfied with local job opportunities. Age follows a less clear pattern but under 25s have higher proportions of both satisfied and unsatisfied than over 25s, suggesting a more polarising experience of local job opportunities. Additionally, dissatisfaction is particularly high (45%) among those with health conditions or disabilities, rising to 56% for those severely limited by their disability. As nearly one in four working-age people have a health condition or disability, ensuring quality work for this group is essential for reaching the 80% employment target.
To achieve an 80% employment rate, one of the highest in the world, it will not be enough just to create job openings. Our analysis shows that Government will need to support ‘good’ jobs throughout the UK. Our research shows that people view good quality jobs to be those that are paid fairly, offer progression, offer flexibility, and have work-life balance. Good work can support sustainable employment. When workers are satisfied with their working conditions, they are more likely to remain working. Research suggests solutions for the three primary obstacles to fulfilling work.
Dissatisfaction with local job opportunities is particularly acute among people with health conditions or disabilities – a key demographic Labour must support to reduce economic inactivity.
SOLUTION 1: Measure ‘good work’ across the UK:
Our MRP reveals stark variations in perceived availability of quality jobs. The government must understand the nature and distribution of job quality across the country. This means:
Measuring the quality and security of work alongside the 80% target. Measures should reflect the wider determinants of quality employment, particularly for low- and middle-income earners. These could include measures of financial security, work-life balance, secure work contracts, and income inequality. In pursuing overall targets, Government should ensure progress is reflected, and measured, across different societal groups and regions.
SOLUTION 2: Responding to in-work poverty and progression challenges
There are 2.4 million people who are working but claiming Universal Credit. Our research into in-work progression highlights a lack of progression opportunities created by employers, a lack of integration between key government services and low motivation among many people to progress. This is a major challenge. Additionally, supporting priority groups, especially those with health conditions or disabilities, to find and stay in work remains crucial. This means:
- Continuing to extend DWP's focus beyond making welfare payments to contributing to economic growth through good work. This refocus should include consideration of inclusion and finding sustainable outcomes for local populations, rather than moving jobseekers into any available work.
- Working across government departmental responsibilities both nationally and locally to enable progression for workers through qualifications and adult learning. Supporting low-skilled workers requires improved cross-government collaboration. DWP might work with the Department for Education and other departments to build digital skills and embed industry-specific qualifications.
- Increasing support for individuals with lower skills, health conditions and disabilities. Discussing access to work and workplace adjustments with employers is essential but employer awareness of support programmes is low. Jobcentre Plus staff could have a greater role in education and promotion of support.
- Using the new Jobs and Careers service to motivate people to progress and create a positive perception of local job opportunities to boost job search activity. The new service must recognise the unique circumstances faced by each individual to support them in considering how to progress within their current circumstances to be most effective.
SOLUTION 3: Engaging employers in creating quality jobs through partnerships
Employers must be engaged as partners in creating quality jobs and supporting career progression. This is essential for addressing both the quality of available jobs and the progression challenges faced by workers.
- Encouraging employers to create progression opportunities, promoting the potential business and workforce benefits through Jobcentre Plus employer and partnerships staff, and as part of a national conversation. As a large employer, government could review how to best enable progression in the public sector and contracted workforce.
- Continuing to decentralise funding and powers to local partners who know their local populations and their needs. The MRP highlights considerable variation in needs and contexts, so local government is well-placed to create initiatives such as The Greater Manchester Good Employment Charter that aims to raise employment standards in regions. Creating effective wider collaboration is also vital, as Ipsos' evaluation of the Plan for Jobs illustrated how crucial relationships between Jobcentre Plus, local authorities, training providers and employers were in moving people into work.
Creating plentiful job opportunities is a cornerstone of the proposed growth strategy. Equally vital is improving the overall quality of all jobs, ensuring good work is accessible to everyone, including individuals facing health challenges. Truly realising economic growth and sharing its benefits necessitates understanding the intricacies of local job markets. This demands an approach that prioritises not just job quantity, but also quality, security, and accessibility. Addressing these key areas will foster a more inclusive and prosperous job market for all.
Employers must be engaged as partners in creating quality jobs and supporting career progression.
Rosie Gloster Associate Director, Ipsos
Jack Watson Research Manager, Ipsos
