A research by the Joseph Rowntree Foundation found that five million workers are paid below the living wage. There are now more working families living in poverty than non-working ones, the research has found.
"While the labour market has shown signs of revival in the last year, the number of people in low-paid jobs has risen and average incomes have fallen," the report said.
The report also says job insecurity is increasingly common in the UK. It says one in six members of the workforce has claimed Jobseekers' Allowance at some point in the last two years.