Poorer U.K. Workers Most Likely to See Income, Hours Reduced

(Bloomberg) --

The U.K.’s lowest income workers have experienced the greatest hit to earnings and hours during the coronavirus pandemic, adding to evidence that the crisis may be exacerbating economic inequalities.

People with an annual income of 10,000 pounds ($12,500) to 20,000 pounds were most likely to have seen that amount fall, according to data compiled by the Office for National Statistics. That could be due to about half of lower paid workers reporting that they are unable to work from home.

By contrast, there was some improvement for high-income individuals. For those on 40,000 pounds or more, only 3.2% could not afford a one-off expense of 850 pounds in the four days to 17 May.

Economic disparities are being exposed and widened by the crisis that has hit some of Britain’s most disadvantaged hardest. Research by McKinsey found that almost a quarter of jobs are at risk due to the virus, with those earning least the most vulnerable, while a report Tuesday showed that the lowest paid industries saw their wages slump in April.

©2020 Bloomberg L.P.