Co-op has become the first retailer to publish a socioeconomic pay gap report, after finding seven in 10 people from a lower socioeconomic background have missed out on job or education opportunities.
From a sample of 1,001 UK respondents who fall into a social grade classification that refers to semi-skilled and unskilled manual occupations, as well as unemployed and lowest-grade occupations, the retailer found 70% had missed out on a career or education opportunity because of their background.
With ONS data putting 10.6 million people in the category, the 70% equates to 7.42 million people UK-wide.
Co-op’s research revealed the top 10 barriers that individuals from disadvantaged backgrounds say they face in moving up the social and economic ladder, with the biggest being a lack of access to financial support for further education and training (21%).
Other reasons included the cost of accessing unpaid internships or work experience (14%), growing up in a region with fewer opportunities (13%), and limited access to professional networks or contacts (9%).
Six per cent said they also felt they could not relate to the lived experiences of colleagues, such as holidays or hobbies like skiing, while a further 6% said they experienced bias or discrimination in the recruitment process.
As a result, over a quarter (27%) said they downplayed or hid their backgrounds in a job interview or workplace.
Co-op chief people and inclusion officer Claire Costello is urging businesses and government to see the new findings as a “wake-up call”.
“Millions of people are being held back from reaching their true potential or accessing the opportunities everyone deserves,” she said. “We know that promoting social mobility isn’t just the right thing to do, but a huge economic opportunity which could boost UK GDP by billions.
“It is no coincidence that countries with greater levels of social mobility are much better at promoting job matching success and greater productivity. That is why the government must make socioeconomic background a protected characteristic as a matter of urgency.”
Co-op is launching a new campaign called ‘Backgrounds into the Foreground’, which calls on government to accelerate its commitment to make socioeconomic background the 10th protected characteristic under the 2010 Equality Act.
“From this campaign we hope to inspire long-lasting change at a societal level, so that everyone can thrive no matter their background,” Costello said.
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