New analysis of economic outcomes by social class
The Centre for Analysis of Social Exclusion at LSE has published new analysis by social class of the impact of the financial crash in 2007 and the subsequent economic downturn.
The analysis shows that average household income for Londoners in all classes has fallen since the 2007 crash. However, the falls were more significant for households headed by someone from the small employers, semi-routine and routine occupational groups (with falls of between 20% and 23%) than for households headed by someone from class 1 (7% fall).
There has also been downward pressure on earnings among the least well-off, increasing the proportion earning less than the London Living Wage. Employees from routine occupational groups experienced the largest increase (14 percentage points) followed by those from lower supervisory and technical and intermediate occupations (10 and 12 percentage points respectively).
Perhaps the greatest social class divides in London are observed in the context of wealth. The average total wealth was £300,000 amongst households headed by someone from the larger employers and higher managerial/professional occupational groups (Class 1) in 2010/12. This figure contrasts sharply with £25,000 and £15,100 for households headed by someone from the routine occupational group. Amongst households headed by someone from the "Never worked/long term unemployed" group, average total household wealth was as low as £8,100. This is very low considering that this figure covers physical wealth (the value of physical assets such as computers, TVs and cars), property wealth (the value of property minus mortgages) and financial wealth (that is financial assets and liabilities such as savings, stocks and shares, borrowing, overdrafts and arrears) for everyone in the household.
The analysis uses the Office for National Statistics NS-Sec classifications. Although not identical to the concept of social class, NS-Sec is widely used official statistics and in research that focusses on patterns of stratification and differences in outcomes by socio-economic position.
Read the full blog here.