In-work poverty is a major issue in London: more than half of Londoners in poverty are employed. Use this page to explore data on low pay in the capital, in-work poverty, employment and benefits.
Proportion of London residents' jobs paid below London Living Wage by employment type (2005-2023)
This page looks at jobs held by London residents that are paid below the London Living Wage. These jobs may be located within London or outside the capital. For a similar analysis focused on jobs located in London only, please see 'Low-paid jobs in London'.
The London Living Wage was introduced in 2005. It is a voluntary wage rate based on the amount of money that people need to live. The rate in London in April 2023 when the Annual Survey of Hours and Earnings we use for this analysis was conducted was £11.95.
The proportion of low-paid jobs held by Londoners has increased slightly in 2023 (16.4%) compared to 2022 (16.2%); this follows a steady decline since 2018 that partially reflects the distorting effects of the pandemic and furlough in the labour market. There had been a continuous rise in the proportion of low-paid jobs over the dec…
Proportion of jobs in London workplaces that are paid below London Living Wage by employment type (2005-2023)
This page looks at the proportion of jobs in London paid below the London Living Wage by:
- employment type (full-time and part-time)
- industry
- occupation
- borough
Here we focus on workplace based numbers. This means that jobs may be held by Londoners or by people who live elsewhere but commute into the capital. For data on jobs held by London residents only, please see 'Low-paid Londoners'.
The London Living Wage was introduced in 2005. It is a voluntary wage rate based on the amount of money that people need to live. The rate in London in April 2023 when the Annual Survey of Hours and Earnings we use for this analysis was conducted was £11.95.
The proportion of low-paid jobs in London has increased slightly in 2023 (13.4%) compared to 2022 (13%); this follows a steady decline since 2018 that partially reflects the distorting effects of …
Proportion of borough residents' jobs that are paid below London Living Wage (2023)
This page looks at jobs held by borough residents that are paid below the London Living Wage. For jobs located in boroughs, please see 'Low-paid jobs in London', chart four.
The London Living Wage was introduced in 2005. It is a voluntary wage rate based on the amount of money that people need to live. The rate in London in April 2023 when the Annual Survey of Hours and Earnings we use for this analysis was conducted was £11.95.
Barking and Dagenham had the highest proportion of residents who were low paid (24.6%) in 2023 followed by Brent (23.3%) and Enfield (22.8%). By contrast Wandsworth (9.7%), Hammersmith and Fulham (9.9%) and Kensington and Chelsea (10%) has the lowest proportion.
Barking and Dagenham also had a significant increase compared to 2022 in the proportion of low-paid residents of 5 percentage points, closely following Bar…
Proportion of London residents' jobs paid below London Living Wage by sex (2005-2023)
Women have consistently been more likely to be in low-paid work than men. In 2023, 17.8% of female Londoners were in low-paid work, which was a slight reduction compared to 2022 (18.2%). By contrast 14.8% of male Londoners were in low-paid work, but this was an increase compared to 2022 (14%).
This gender gap in low-paid employment is driven by the number of women who are in part-time work. There is no significant difference in the proportion of men in full-time work who are in low-paid jobs (9.6%) and the proportion of women in full-time work (9.7%), but 50% of men in part-time work are low paid compared to 39.2% of women. Despite this, women overall are more likely to be paid below the London Living Wage.
Proportion of London residents' jobs paid below London Living Wage by ethnic group (2021)
Special-license data from the Labour Force Survey (LFS) makes it possible to analyse how different demographics groups of Londoners suffer from low-pay. It is important to note, nonetheless, two important caveats in relation to this data source. Firstly, because of reduced sample sizes, for some groups the estimations have rather wide confidence intervals (at 95%), which call for a careful interpretation of the data. Secondly, because of the different characteristics of LFS (a survey of residents) and ASHE (based on a sample of administrative data), the London average associated to the figures below differs from the one represented above.
Notwithstanding the limitations explained above, data appears to show important difference in low-pay according to Londoners’ ethnicity. In fact, white Londoners appear to be the only group that have a b…
Proportion of London residents' jobs paid below London Living Wage by disability status (2021)
Disabled Londoners in work are more likely to be low-paid than Londoners who are not Disabled and are in work. The proportion of working Londoners with a disability that are low-paid is above average, and 7 percentage points higher than their neighbours without a disability.
80:20 hourly wage ratio by London borough (2013, 2019 and 2023)
There are many ways of measuring pay inequality. This indicator considers the 80:20 hourly wage ratio, which shows how much greater hourly pay is for those at the 80th percentile of the hourly pay distribution than for those at the 20th percentile. The larger the ratio, the more unequal hourly pay.
Based on this measure, pay inequality is significantly higher in London than in England. In London, the 20% highest paid earn at least 2.5x more per hour than the 20% lowest paid. In England, the figure is 1.72.
Since before the pandemic, wage inequality has decreased in every borough where data are available, except Wandsworth. Every borough has a higher level of pay inequality than the England average.
Gross household income for small areas (MSOA) (2019/20)
Last updated: August 2024
What does this indicator show?
This indicator shows the average gross household income (before tax) in each London borough. By clicking on a borough, you can also see the average income in each MSOA. MSOAs are small areas or neighbourhoods, usually of around 2,000-6,000 people.
We can use this to see how income differs across London's boroughs and neighbourhoods, which helps us to understand levels of inequality.
What does it tell us?
By comparing the average household income across London boroughs and neighbourhoods, we can see the level of pay inequality across the capital. For example in Wandsworth, the average household income is £74,000 - more than 60% higher than in Barking and Dagenham (£46,000).
We can also see the level of inequality within boroughs. Although Wandsworth has the highest average income (excludi…
Indexed gross hourly pay in London and England (2002-2023)
This indicator shows how hourly pay for Londoners’ in employment (before tax, adjusted for inflation) has changed over time, using 2008 as a baseline. On average, Londoners are paid 8.5% less per-hour (as of 2023) than in 2008 - lower than any point since 2015.
Hourly pay for lower earners
Hourly pay for lower earning Londoners at the 10th income percentile has grown significantly since 2014. Londoners in this group are paid 11.5% more per-hour (as of 2023) than they were in 2008. This rise is even more extreme in the rest of England, where those at the 10th income percentile earn 19% more per hour than they did in 2008.
This rise is likely driven by increases in the minimum and Living Wages. However, when we look at weekly and yearly pay - instead of hourly - we don’t see the same increase in earnings for those on lower incomes.
Hourly pay…
Indexed gross weekly pay in London and England (2002-2023)
This indicator shows how weekly pay for Londoners in employment (before tax, adjusted for inflation) has changed over time, using 2008 as a baseline.
On average, Londoners are paid nearly 10% less per week (as of 2023) than they were in 2008. This means Londoners’ average weekly pay is now lower than at any point since 2015.
This indicator also shows how weekly pay has changed over time for Londoners on lower and higher incomes. Londoners at the 10th percentile of weekly pay (those with incomes below 90% of other Londoners) are paid 7% less than they were in 2008. Londoners at the 90th percentile (those with incomes above 90% of Londoners) are paid 13% less.
This is significantly different to the rest of England. On average, workers in the rest of England are paid 2.8% less than in 2008. Lower income earners at the 10th percentile are pai…
Indexed gross annual pay in London and England (2000/01 - 2022/23)
This indicator shows how yearly pay for Londoners’ in employment (before tax, adjusted for inflation) has changed over time, using 2008 as a baseline. On average, Londoners are paid 8.9% less (as of 2023) than they were in 2008.
Yearly pay for lower earners
Over the last 10 years, annual pay for Londoners at the lower 10th percentile has increased by 9%. This group are also paid slightly more per year (2.2%) than they were at the start of the pandemic.
However, Londoners at the 10th percentile are still paid significantly less (11.2%) per year than they were in 2008. This is despite earning more per hour than in 2008, as shown by our hourly pay over time indicator.
Yearly pay for higher earners
Londoners at the 90th percentile (those with incomes above 90% of other Londoners) are paid 8.3% less than they were in 2008.
Before the pandemic, t…
Employment status of all adults aged 16+ in poverty (2011/12 - 2022/23)
Last updated: May 2024
Next estimated update: May 2025
What does this indicator show?
This indicator shows the employment status of all Londoners in poverty. By looking at the percentage of people in poverty who are employed, we can see the prevalence of in-work poverty in London.
What does it tell us?
More than half (51%) of working-age Londoners in poverty are employed. Just below half (44%) of those aged 16 and over who are in poverty in London are economically inactive (retired, long-term sick, studying or looking after the home). Another 5% are unemployed.
The proportion of people (aged 16 and over) in poverty who are working is higher in London (51%) than it is in the rest of England (43%). In the last decade, the proportion of people in poverty who are employed has gone up slightly - from 46% in 2012/13 to 51% in 2022/23. The proportion…
Proportion of people in London in poverty by type of working household over time (1998/99 - 2022/23)
Last updated: May 2024
Next estimated update: May 2025
What does this indicator show?
This indicator shows the percentage of people in poverty, split by their household working status. It focuses on families where at least one adult is in work, to explore the nature of in-work poverty in London. For example, we can see the percentage of people who live in a household where all adults are in full-time work that are in poverty.
What does it tell us?
Household work status is closely related to the likelihood of the household being in poverty. This indicator shows that, on average, the fewer adults who are in work, the more likely the household is to be in poverty:
- Households where one or more adult works part time (and none work full time) have the highest poverty rate. Nearly half of people (43%) living in such households are in poverty.
- In contr…
Number of children, adults, and pensioners in London in poverty by working status (2012/2013, 2017/2018 and 2022/2023)
Last updated: May 2024
Next estimated update: May 2025
What does this indicator show?
This indicator shows the number of people living in poverty in London, split by life-stage (children, adults and pensioners) and the working-status of their household. A ‘working household’ is one where at least one adult is in work and a ‘workless household’ is one in which no adults are in work.
What does it tell us?
We can see that more Londoners living in poverty are in working households than in workless households. This has been consistently the case for the last decade. In 2022/23 we find some 930,000 people in poverty are living in working households. By contrast, 380,000 people in poverty are living in working-age workless households.
A similar pattern is true if we look at children in poverty. 480,000 children in poverty live in households where som…
Main industry categories for those in in-work poverty (2022/23)
Last updated: May 2024
Next estimated update: May 2025
What does this indicator show?
This indicator looks at the industries in which those experiencing in-work poverty are most likely to work. It shows the proportion of Londoners in in-work poverty that are working in each of the ONS’ Standard Industry Classifications.
What does it tell us?
In London, the most common industry for people in in-work poverty to work in is human health and social work activities. This group accounts for 13% of Londoners in in-work poverty.
The second most common industry for people in in-work poverty to work in in London is administrative and support service activities. This group accounts for 11% of Londoners in in-work poverty.
By contrast in the rest of England the most common industry for people in in-work poverty to work is wholesale/retail and motor repair (…
Unemployment rate over time (2005 Q1 - 2024 Q1)
Last updated: August 2024
Next estimated update: November 2024
What does this indicator show?
This indicator shows the unemployment rate over time for London, the rest of England, and for Inner and Outer London.
What does it tell us?
The picture now
Outer London’s unemployment rate is 4.9%, which is below the rate in Inner London of 5.3%. Both Inner and Outer London have higher unemployment rates than the rest of England (3.6%).
How this has changed over time
Unemployment peaked following the financial crash, and then steadily declined from 2012 until the beginning of 2020. In Inner London, the unemployment rate more than halved from 2010 to 2020, from 10.7% to 4.5%. It recovered to pre-financial crisis levels in 2014. In Outer London, it declined from its peak of 9.3% in 2012 to 4.9% in 2020, and did not recover its pre-crisis levels until 201…
Unemployment rate by London borough (2023 Q1 and 2024 Q1)
Last updated: September 2024
Next update: April 2025
What does this indicator show?
A person is considered ‘unemployed’ if they are out of work, but looking for or available to work. This indicator shows the unemployment rate - the proportion of economically active people (that is those either employed or unemployed) age 16+ who are unemployed - in each London borough. View a map of the data at the bottom of the page.
What does it tell us?
The unemployment rate varies across London boroughs with the highest rates in 2024 Q1 around 3 percentage points higher as the lowest. Barking and Dagenham (7.0%), Hillingdon (6.8%) and Camden (6.6%) contrast with Hackney, Southwark, and Harrow (all 4.1%).
How this has changed in the last year
Compared to the previous year, most boroughs saw increases, some quite large - Hillingdon, Camden, Islington, Westmin…
Unemployment rates in London for men and women (Jun 1992 - Jun 2024)
Last updated: August 2024
Next estimated update: October 2024
What does this indicator show?
This indicator shows the proportion of Londoners that are unemployed, split by sex.
What does it tell us?
Women are slightly more likely to be unemployed than men in London. 5.8% of women in London were unemployed in June 2024, compared to 4.7% of men.
For both sexes, this is slightly higher than two years ago. The unemployment rate is also higher than it was before the COVID-19 pandemic - but lower than it was during its pandemic peak of 2021, and much lower than the peak during the financial crisis of around 10% (in 2011).
The unemployment gap
Over the past three decades, the gender split has become more even overall. In 1993 the unemployment rate was more than 50% higher amongst men compared to women, but by the late 2000s the numbers were broadly si…
Employment rate of 16-64 year olds by highest qualification level (2023)
Last updated: September 2024
Next estimated update: April 2025
What’s this indicator?
This indicator shows the percentage working-age adults in London that are employed, split by their highest qualification level. It shows the employment rate for people:
- With no qualifications
- Whose highest qualification is RQF1 (GCSE grades 3-1, or D to G)
- Whose highest qualification is RQF2 (GCSE grades 9-4 or A* to C)
- Whose highest qualification is RQF3 (A levels and equivalent)
- Whose highest qualification is RQF4+ (apprenticeships, degrees and above)
- With other qualifications (such as those from other countries)
What does it tell us?
Employment rates are, on average, higher amongst people with higher levels of qualifications. For example, in 2023 89% of Londoners aged 16-64 with qualifications higher than A-levels (such as university degrees) were employed comp…
Work status of London households (2004-2022)
What does this indicator show?
A household is considered “workless” when at least one member of the household is aged between 16 and 64 and none of its adults are in employment. This indicator shows the proportion of households in London where no adults are in work, and the proportion where some or all adults are in work.
What does it tell us?
In 8% of London’s working age households, no adults are in work. That's 501,000 households across the city. The proportion of workless households has almost halved since 2004 when 15% of households contained nobody in employment. There was a slight increase to 9% in 2021 likely as a result of the COVID-19 pandemic, before returning to 8% in 2022. This means that in 2022, at least one adult does some work in 92% of working-age households in London.
In 2022, there were over 3.2 million households in Lond…
Work status of London households by net income quintile (2022/23)
Last updated: June 2024
Next estimated update: September 2024
What does this indicator show?
This indicator shows the work status of London households, split by income quintile. We can use it, for example, what percentage of London households on the lowest 20% of incomes have all adults in full-time employment.
What does it tell us?
This indicator tells us that household work status is closely related to household net incomes. Overall, households with lower net incomes are more likely to include inactive, retired or unemployed adults.
For example, just 8.5% of households on the 20% lowest income live in households where all adults work full time. By contrast 63.3% of those in the top 20% of the net income distribution live in households where all adults work full time.
Nearly one in five of those in the bottom net income quintile live in econ…
Economic activity status of Londoners aged 16 and over (2024 Q1)
Last updated: August 2024
Next estimated update: November 2024
What’s this?
This indicator shows the labour market activity of all adult Londoners. We can use it to see how many Londoners are employed or not working, and the reasons for not working.
What does it tell us?
More than 4.7 million Londoners – 66% of the adult population – were in work of some kind in the year to March 2024. This is higher than the 60.3% of adults who are employed in the rest of England.
Just over one third of adults in London are classed as economically inactive (34%) - which means they are not employed, and not looking for a job or able to start work. There are many reasons someone might be economically inactive, such as because they are too ill to work, retired, or a student.
See our Reasons for not Working indicator for more detail.
Economic activity status of London men aged 16 and over (2024 Q1)
Last updated: August 2024
Next estimated update: November 2024
What’s this?
This indicator shows the labour market activity of all adult Londoners, split by sex. We can use it to see how many men and women in London are employed or not working, and the reasons for not working.
What does it tell us?
There are over 338,000 more men in work in London than women. Men who live in London are also more likely to be self-employed than women – 14.1% compared to 8.1%.
Women are significantly more likely to be economically inactive than men, with 39.2% of women not working compared to 29.2% of men. For some types of inactivity, women and men have very similar rates, including long-term sickness and temporary sickness.
However, women were significantly more likely to not be working because they were looking after the home or family, with 7.7% of women – …
Worklessness for men and women in London by country of birth (2021/22 Q1)
Just under two-thirds (63%) of working-age women in London who were born in Bangladesh did not work in the year to March 2021/22, the highest rate of any nationality. Pakistani women are not far behind with 61% not working. Of men in London who were born overseas, those from China have the highest rate of worklessness (28%).
Women originally from Portugal had the lowest rates of worklessness (2%), while those from Sri Lanka had the lowest rate for men (9%). For most countries, the worklessness rate is higher for women than men, although this trend does not hold true for countries such as Lithuania, Portugal, France, Romania, Poland and Italy.
Proportion of Londoners aged 16-64 receiving out-of-work benefits by benefit type (2014-2023 Q4)
Last updated: June 2024
Next estimated update: September 2024
What does this indicator show?
This indicator shows the proportion of working-age Londoners out-of-work and receiving benefits.
What does it tell us?
13.2% of working-age Londoners are out-of-work and on benefits - a slight increase since last year (12.3%).
The number of out-of-work benefit claimants aged 16-64 jumped in 2020 in the wake of the COVID-19 pandemic, peaking at 14.5% in 2020.
The types of benefits claimed by those out of work has also changed in recent years, as Universal Credit has rolled out across the capital. For example, 0.7% of working-age Londoners were out of work and claiming Universal Credit in 2016. By 2023, this proportion had risen to 10.2% of the working-age population.
Compared to the rest of England
London now has a similar proportion of its working-age p…
Percentage of people on out-of-work benefits by London borough (2024 Q1 and 2023 Q1)
People on out-of-work benefits, by London borough
London households affected by the benefit cap (2014 - 2024 Q1)
What does this indicator show?
The benefit cap limits the amount of money that most working-age people can receive from benefits. In Greater London the limit is £25,323 per year or £16,697 for single adults with no children. This was reduced in November 2016, and recently increased in April 2023. The benefit cap is applied by either reducing Universal Credit or Housing Benefit (for those not claiming Universal Credit).
What does it tell us?
More than 27,000 households in London had their income reduced by the benefit cap in February 2024. This has increased by more than 55% since before the pandemic (February 2020). However, the number of households affected by the benefit cap has been steeply reducing since a peak of 61,000 households during the pandemic.
The data refers to the month of February for each year spanning 2014 to 2024, and inc…