AROUND one in seven workers experience unstable earnings, a new analysis from the Resolution Foundation revealed today.

Erratic earnings were defined as having four or more months annually where earnings are at least 25 per cent above or below average income.

Using data from the HMRC, Resolution Foundation found that young workers are the most likely to receive erratic earnings, with one in four 20-24 year-olds impacted.

One in four working in hospitality were likely to experience erratic earnings, one in seven in retail at 16 per cent and health and social care at 14 per cent — sectors in which zero-hour contracts are prevalent.

Resolution Foundation suggests universal credit could be made more compatible with volatile pay to better support workers.

Nye Cominetti, principal economist at the Foundation, also highlighted that young and low-paid workers are in a “weaker position to bargain for stability, underpinning the importance of the government taking action to improve stability for those workers through its Employment Rights Bill.”