Low earners have lost their ‘job satisfaction premium’ over higher paid staff

By Nuffield Foundation

Huge changes in the world of work over the past 30 years have led to people having a greater attachment to their work, but also rising levels of stress and falling levels of control, which has coincided with low earners losing their ‘job satisfaction premium’ over higher paid colleagues, according to new Resolution Foundation research.

Work Experiences – the latest report for The Economy 2030 Inquiry funded by the Nuffield Foundation – examines how people have experienced economic change via the jobs they do over the past 30 years, and what has driven these shifts. It notes that with work consuming the majority of many people’s waking hours, their experience of work can shape their wider well-being and living standards.

Despite huge changes over the past 30 years – from the growth of female, graduate and migrant workers, to the decline of manufacturing and overhaul of HR and management practices – the report shows that employees’ overall job satisfaction levels remained resilient at around 60% in the 1990s and 2000s, before falling to 52% immediately following the financial crisis and recovering slightly to 56% by 2017-2019.

However, this relative stability of overall job satisfaction masks a wide range of improvements and deteriorations in people’s experience of work.

Contrary to the popular narrative that people are increasingly trapped in worthless jobs, the report finds that the proportion of employees who say their work is ‘helpful to others’ has actually increased (from 67% in 1989 to 79% in 2015). It goes on to find that more people say their job ‘offers prospects for advancement” (up from 22% to 35% over the same period), and that they are ‘proud of where they work’ (up from 77% to 86% between 1992 and 2017).

However, the report notes that the ‘job satisfaction premium’ that low earners used to enjoy in the early 1990s – 73% reported high job satisfaction in 1991-1992, compared to 59% among high-paid employees – has deteriorated over the past three decades. Today, overall job satisfaction rates have ‘levelled down’ to just under 60 per cent per cent among both high- and low-paid employees.

This sharp deterioration in low earners’ job satisfaction levels is likely to have been driven by rising levels of work intensity and stress, and falling levels of control over their work, says the Foundation. While all workers have been affected by these trends, as more people work in more stressful professional roles, low earners have been particularly exposed to them. 

The report finds that the share of employees who say they work ‘at very high speed’ for most of the time has increased from 23% to 45% between 1992 and 2017, as has the proportion of employees that say they feel ‘used up at the end of the day’ (up from 20% to 29%, with an even bigger increase among female workers).

Over a similar time period (1989 to 2015) stress at work has increased by a quarter (from 30% to 38%).

Work Experiences also identifies a related cause of stress at work, the sharp decline in workers having a say over the decisions that change how their work is done. This decline has been particularly stark for low earners – falling 44% to 27% between 1992 and 2017.

With the 2020s set to usher in another period of change in workplaces – driven by COVID, Brexit, and rising automation among other factors – the Foundation says the impact of workplace shifts should be measured not just in terms of pay and productivity, but workers’ job satisfaction and well-being too.

It adds that policy makers must address issues for low earners beyond the minimum wage, such as the lack of control over the work they do, and that firms looking for productivity gains are unlikely to find them by simply driving their workers even harder.

Krishan Shah, Researcher at the Resolution Foundation, said:

“The world of work has changed completely over the past 30 years – from the decline of manufacturing to the growing use of computers, as well as new HR and management practises.

“While some commentators have decried this as the rise of so-called “B*llshit Jobs”, in fact workers appear to have a greater sense of pride and purpose in the jobs they do today.

“However, work has also become more intense and stressful in recent decades, particularly for Britain’s low earners. This has had a ‘levelling down’ effect across Britain’s workplaces, with low earners losing the ‘job satisfaction premium’ they once enjoyed over higher paid staff.

“As Britain edges towards a post-pandemic economy, we need to focus more on these wider measures of job satisfaction if we’re to boost workers’ well-being, as well as their pay. Low earners in particular need to have a greater say over the work they do.”

Alex Beer, Welfare Programme Head at the Nuffield Foundation said:

“Improving working conditions for employees could increase job satisfaction and reduce levels of work-related stress. In addition to improving employees’ physical and mental health, better conditions might also help to increase productivity.

“As many employers consider changes to their workplace policies in response to the COVID-19 pandemic, this research demonstrates why efforts to support workers’ wellbeing should be a priority.”

Related project


By Nuffield Foundation

Explore our projects

New

Welfare | 2024 - 2027

Gypsy, Roma, Traveller Youth: mitigating exclusions using the digital?

View project
A front view of a father and his two children. He is carrying his young son in his arms and his daughter is riding her scooter along the footpath as he pushes his son's scooter along the way.
New

Justice | Welfare | 2024 - 2026

Challenging justice inequalities with children in conflict with the law 

View project
New

Welfare | 2024 - 2027

Performance Tracker 

View project
Mother wearing hijab holding her toddler son on her knee, smiling at each other
New

Welfare | 2024 - 2025

Afghan resettlement in England: outcomes and experiences 

View project
A woman is sat on the edge of a bed staring at her phone while her daughter is in the background.
In progress

Welfare | 2023 - 2025

Virtual parent support portals: a new research and practice agenda

View project
A middle-aged man sat at home is looking at this phone while sorting pension paperwork.
New

Welfare | 2023 - 2025

Collective defined contribution pensions with investment choice

View project
three women walking along street laughing and smiling
New

Welfare | 2023 - 2025

Revealing social capital

View project
New

Welfare | 2023 - 2026

Universal Credit, good work and progression

View project
Three colleagues smiling and talking at work
New

Welfare | 2023 - 2026

Arthritis, work and wellbeing: a mixed methods study with policy recommendations

View project
Elderly woman and adult daughter out shopping
In progress

Welfare | 2023 - 2026

Connecting pensions, health and care

View project
A group of neighbours walking outside in a green space

Welfare | 2023 - 2026

Just neighbourhoods? Under-representation in UK community-led planning

View project
Teenager hugging their mother
New

Welfare | 2023 - 2025

Juvenile onset rheumatic diseases: education, vocational readiness, & employment

View project
A front view of a father and his two children. He is carrying his young son in his arms and his daughter is riding her scooter along the footpath as he pushes his son's scooter along the way.
New

Justice | Welfare | 2024 - 2026

Challenging justice inequalities with children in conflict with the law 

View project
New

Welfare | 2024 - 2027

Gypsy, Roma, Traveller Youth: mitigating exclusions using the digital?

View project
New

Welfare | 2024 - 2027

Performance Tracker 

View project
Mother wearing hijab holding her toddler son on her knee, smiling at each other
New

Welfare | 2024 - 2025

Afghan resettlement in England: outcomes and experiences 

View project
three women walking along street laughing and smiling
New

Welfare | 2023 - 2025

Revealing social capital

View project
A middle-aged man sat at home is looking at this phone while sorting pension paperwork.
New

Welfare | 2023 - 2025

Collective defined contribution pensions with investment choice

View project
New

Welfare | 2023 - 2026

Universal Credit, good work and progression

View project
A woman is sat on the edge of a bed staring at her phone while her daughter is in the background.
In progress

Welfare | 2023 - 2025

Virtual parent support portals: a new research and practice agenda

View project
A group of neighbours walking outside in a green space

Welfare | 2023 - 2026

Just neighbourhoods? Under-representation in UK community-led planning

View project
People looking at their mobile phones while waiting for job interview

Welfare | 2023 - 2024

Reliability and validity of crowdsourced workplace wellbeing data

View project
Teenager hugging their mother
In progress

Welfare | 2023 - 2026

The long-term effects of being a young carer

View project
Elderly woman and adult daughter out shopping
In progress

Welfare | 2023 - 2026

Connecting pensions, health and care

View project
A woman is sat on the edge of a bed staring at her phone while her daughter is in the background.
In progress

Welfare | 2023 - 2025

Virtual parent support portals: a new research and practice agenda

View project
Teenager hugging their mother
In progress

Welfare | 2023 - 2026

The long-term effects of being a young carer

View project
Elderly woman and adult daughter out shopping
In progress

Welfare | 2023 - 2026

Connecting pensions, health and care

View project
Male and female apprentices looking at car engine
In progress

Education | 2022 - 2025

Work or study? Gender and the transition from school to work

View project
Mother, father, son and daughter standing in front of their house
In progress

Welfare | 2023 - 2025

A regional regeneration index to track socioeconomic ‘Levelling Up’

View project
Man working on a laptop using sign language on a video call
In progress

Welfare | 2023 - 2024

Designing inclusive remote and hybrid working to support disabled workers

View project
Children walking with their parents in the countryside
In progress

Welfare | 2022 - 2024

Children’s lives in changing places

View project
Older man working from home on a video call
In progress

Welfare | 2022 - 2023

The impact of pension auto-enrolment and COVID-19 on saving behaviours

View project
Worried woman alone in a room, resting her head on her arms
In progress

Welfare | 2022 - 2024

Links between cognitive impairment and exploitation in England

View project
A man working as a delivery driver sits in the driver's seat, checking his list on a tablet
In progress

Welfare | 2022 - 2023

Redesigning labour market policies for the future of work

View project
Older people drinking tea at a meeting at a community centre
In progress

Welfare | 2022 - 2024

Using administrative data to understand community well-being

View project
Two cheerful farmers standing outside a farm building looking at a tablet
In progress

Welfare | 2022 - 2024

Rural assets: policy and practice insights from the devolved nations

View project
New

Welfare | 2024 - 2027

Gypsy, Roma, Traveller Youth: mitigating exclusions using the digital?

View project
New

Welfare | 2024 - 2027

Performance Tracker 

View project
Mother wearing hijab holding her toddler son on her knee, smiling at each other
New

Welfare | 2024 - 2025

Afghan resettlement in England: outcomes and experiences 

View project
three women walking along street laughing and smiling
New

Welfare | 2023 - 2025

Revealing social capital

View project
A middle-aged man sat at home is looking at this phone while sorting pension paperwork.
New

Welfare | 2023 - 2025

Collective defined contribution pensions with investment choice

View project
New

Welfare | 2023 - 2026

Universal Credit, good work and progression

View project
Three colleagues smiling and talking at work
New

Welfare | 2023 - 2026

Arthritis, work and wellbeing: a mixed methods study with policy recommendations

View project
A man driving a van at work
New

Welfare | 2023 - 2025

The PAW Trial: feasibility and acceptability of the Pain-at-Work Toolkit

View project
Two older women swimming in their local pool
New

Welfare | 2023 - 2025

The psychological, social and economic impact of musculoskeletal conditions

View project
Older woman using a tablet to make a video call
New

Welfare | 2023 - 2025

Remote osteoarthritis peer-mentorship for socioeconomically underserved people

View project
Teenager hugging their mother
New

Welfare | 2023 - 2025

Juvenile onset rheumatic diseases: education, vocational readiness, & employment

View project
Older woman at work using a laptop
New

Welfare | 2023 - 2026

Extending working lives for people with musculoskeletal conditions

View project
Grandparents having fun outdoors with their granddaughter, who is eating an apple and laughing: Understanding family and community vulnerabilities in transition to net zero
Reported

Welfare | 2021 - 2023

Understanding family and community vulnerabilities in transition to net zero

View project
Father and son using laptop at home
Reported

Welfare | 2021 - 2024

Developing a minimum digital living standard for households with children

View project
Close up of a young girl and her father wearing protective face masks during the COVID-19 pandemic outside.
Reported

Welfare | 2021 - 2023

The Economy 2030 Inquiry: navigating a decade of change

View project
Young boy draws and plays with a globe as part of nursery education
Reported

Education | 2020 - 2022

COVID-19 and childcare: local impacts across England

View project
Toddler-gleefully-eats-baked-beans-How-COVID-19-is-affecting-food-security-proj
Reported

Welfare | 2020 - 2021

How the COVID-19 crisis is affecting food security

View project
Teenage-girl-looks-at-smartphone-next-to-laptop-Growing-up-under-COVID-19-PROJ
Reported

Education | Welfare | 2020 - 2022

Growing up under COVID-19

View project
Mother carrying daughter outside their home
Reported

Welfare | 2020 - 2022

COVID realities: families on low incomes during the pandemic

View project
Woman-looks-at-smartphone-screen-How-the-UK-public-gets-information-about-COVID-19-PROJ
Reported

Welfare | 2020 - 2020

How the UK public gets information about COVID-19

View project
Woman-medical-professional-treats-patient-impact-MSK-conditions-outcomes-other-illnesses-PROJ
Reported

Welfare | 2020 - 2022

The impact of musculoskeletal conditions on outcomes of other illnesses

View project
A middle-aged teacher sits at her desk and helps a female student with a problem in her textbook.
Reported

Education | Welfare | 2020 - 2020

Measuring the disadvantage attainment gap in 16-19 education

View project
Reported

Welfare | 2013 - 2017

IFS Green Budget 2013 – 2016

View project
Reported

Welfare | 2013 - 2016

Data about fathers in birth cohort studies (Life Study)

View project
Search projects

We improve people’s lives by funding research that informs social policy, primarily in Education, Welfare and Justice. We also fund student programmes that give young people skills and confidence in science and research.

We offer our grant-holders the freedom to frame questions and enable new thinking. Our research must stand up to rigorous academic scrutiny, but we understand that to be successful in effecting change, it also needs to be relevant to people’s experience.

Profile