PPIW Report Publication: Growth sectors have a significant impact on poverty but need to be part of a wider economic approach which considers place specific factors

PPIW Report Publication:

Growth sectors have a significant impact on poverty but need to be part of a wider economic approach which considers place specific factors

A new study report funded by the PPIW and ESRC demonstrates that the sector which an individual works in has a significant impact on their income but that the level of local demand for labour is also important.

The research undertaken by Professor Anne Green, Dr Paul Sissons and Dr Neil Lee highlights low pay as a feature of the accommodation/food services, residential care, wholesale/retail, and the agriculture, forestry and fishing sectors.

Three of these sectors (accommodation / food services, residential care, wholesale and retail) are likely to have the highest employment demand in the medium term.

The authors suggest that we therefore need policies which focus on upgrading skills and developing career ladders in these sectors in order to help reduce low pay and in-work poverty.

However, they also found that local conditions also affect wage growth. The authors report that it is the aggregate level of local labour demand change, rather than sector-specific employment change, which is most likely to drive wage increases.

Therefore policies which focus on growth sectors alone are unlikely to have a significant impact on poverty. Sector based policies need to be part of a broader economic framework which considers place specific factors if they are to have an impact on efforts to reduce poverty.

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Cyhoeddi Adroddiad Sefydliad Polisi Cyhoeddus Cymru (PPIW):

Mae sectorau twf yn cael effaith sylweddol ar dlodi ond mae angen iddynt fod yn rhan o ymagwedd economaidd ehangach sy’n ystyried ffactorau penodol lleoliadau.

Dengys adroddiad astudiaeth newydd a ariennir gan PPIW a’r Cyngor Ymchwil Economaidd a Chymdeithasol fod y sector y mae unigolyn yn gweithio ynddo yn cael effaith sylweddol ar ei incwm, ond bod lefel y galw lleol am lafur hefyd yn bwysig.

Mae’r ymchwil gan yr Athro Anne Green, Dr Paul Sissons a Dr Neil Lee yn amlygu cyflog isel fel nodwedd ar y gwasanaethau llety/bwyd, gofal preswyl, cyfanwerthu ac adwerthu, a’r sectorau amaethyddiaeth, coedwigaeth a physgota.

Tri o’r sectorau hyn (gwasanaethau llety/bwyd, gofal preswyl, cyfanwerthu ac adwerthu) sy’n debygol o weld y galw uchaf am gyflogaeth yn y tymor canolig.

Mae’r awduron yn awgrymu felly bod angen polisïau arnom sy’n canolbwyntio ar uwchraddio sgiliau a datblygu llwybrau gyrfa yn y sectorau hyn er mwyn helpu i leihau cyflogau isel a thlodi yn y gwaith.

Fodd bynnag, daeth i’r amlwg iddynt hefyd fod amodau lleol yn effeithio ar dwf cyflog hefyd. Mae’r awduron yn crybwyll mai’r lefel gyfunol o newid mewn galw lleol am lafur, yn hytrach na newid cyflogaeth sector-benodol, sydd fwyaf tebygol o godi cyflogau.

Felly, mae polisïau sy’n canolbwyntio ar sectorau twf yn unig yn annhebygol o gael effaith sylweddol ar dlodi. Mae angen i bolisïau sy’n seiliedig ar sectorau fod yn rhan o fframwaith economaidd ehangach sy’n ystyried ffactorau penodol lleoliad os ydynt am gael effaith ar ymdrechion i leihau tlodi.

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