Trade Union Congress (TUC) Press Release:
Inner London is the only area of the country to have a higher rate of job starts than before the recession, while job creation in some parts of the country is down 31 per cent on pre-recession levels, according to a new TUC report published today (Monday).
The TUC Touchstone pamphlet Equitable Full Employment: A Jobs Recovery For All (pdf) shows that the recent rise in employment is being driven by fewer people leaving their jobs, rather than more people finding new work.
Job starts – the number of people starting a new job within a three month period – are currently around 20 per cent below pre-recession levels across the UK, and are still falling in parts of the country. The fact that fewer people are leaving their jobs helps to explain why the employment rate for older workers is increasing so much faster than for young people, says the TUC.
The report, written for the TUC by Tony Wilson and Paul Bivand of the Centre for Economic and Social Inclusion (Inclusion), compares job start rates before the recession, at the height of the crash and during the recent recovery. It finds that metropolitan areas such as London, Birmingham and Tyne and Wear are recovering faster than their neighbouring rural areas.
Inner London is the only area of the country where jobs are being created at a faster rate than before the crash. Outer London, the South East and Eastern England have recovered since the crash but job starts are still 11 per cent, 16 per cent and 21 per cent below pre-recession levels.
Job creation across the rest of the country is more mixed, says the TUC. Job creation in Tyne and Wear is recovering (though still 11 per cent below pre-recession levels) but getting worse across the rest of the North East.
> In fact, as a whole, North East unemployment continues to rise…
Job creation in the West Midlands metropolitan area is recovering but the rest of the region continues to decline (down 31 per cent), while South and West Yorkshire are both performing far better than the rest of Yorkshire and Humberside. Job starts in Greater Manchester have fallen slightly since the height of the crash but the city is still doing far better than Merseyside and the rest of the North West, where job starts are 30 per cent down on pre-recession levels.
Strathclyde is the only major metropolitan area that is performing worse than its neighbouring area, with job creation across the rest of Scotland recovering faster.
The report shows while the UK’s employment rate is rising, there are huge swathes of the country – particularly rural areas – where job creation remains depressed and is getting worse, say the TUC.
The report also looks at job starts across different age groups, qualification levels and types of work. It finds that while job creation rates for graduates are back above pre-recession levels, the number of people with lower-level qualifications starting new jobs declined during the boom and has continued to deteriorate since the crash.
The proportion of jobs starts to non-permanent work is now higher than it was before the crash, with three in ten job starts in temporary work. Fixed-term contacts are the most popular form of temporary work.
The continuing shift from permanent employee jobs to self-employment and temporary work, such as fixed-term contacts and agency work, suggests the nature of the UK jobs market is changing permanently, rather than being a short-term response to the recession, says the TUC.
> The final victory of Thatcherism – smash the unions and the rest can be exploited…
The rate of people moving from unemployment to work is still lower than pre-recession levels across all age groups, say the report. ‘Hiring rates’ have recovered fastest for older workers, but they remain far less likely to move from unemployment to work than any other age group.
Hiring rates for 16-24 year olds, who traditionally have moved from unemployment into work at a far quicker rate than all other age groups, have declined considerably over the last 17 years. People in their late 20s and early 30s are now finding work as quickly as younger people, says the report.
The report makes a number of recommendations to boost job creation and raise employment levels further, including:
• Offering targeted employment support programmes, such as a job guarantee for any young person out of work for at least six months.
• Identifying low skills as a reason to provide more intensive employment support.
• Establishing bodies in each industrial sector so that government, unions and employers can work together to identify skills gaps, promote decent workplace standards and fair pay.
TUC General Secretary Frances O’Grady said:
“Many people assume that rising employment levels are simply down to more people getting new work. In fact, the recent recovery in our jobs market is mainly due to people holding onto their jobs, rather than finding new ones. This is great news if you want to keep earning as you approach retirement, but less positive if you’re trying to take your first step on the career ladder.
“Job creation is as important for people looking for work as it is for those already in work and looking to boost their incomes. It’s worrying that across huge swathes of the country – and particularly in rural areas – job creation levels remain depressed and that where jobs are being created far more are temporary positions than before the crash.
“We need to see far more high-quality jobs being created, not just in our cities but across the UK, if we’re going to achieve full employment and a return to healthy pay rises.”
CESI Associate Director Paul Bivand said:
“What we are concerned about is inclusion, which isn’t just our name. Growth in employment should help to close gaps in our society. We don’t want a rising tide to lift just the most buoyant, while leaving others behind. We want all areas and groups to benefit and we need to close gaps.
“We are already hearing that there is a risk of the Bank taking action because of overheating high-end London house prices. For the economy to benefit all, then rises in jobs have to occur in the rural areas as well as the cities, and Glasgow and Merseyside as well as the South East.”
Source – Welfare News Service, 23 June 2014
Trade Union Congress (TUC) Press Release:
Young people not in full-time education are now less likely to be in work than people of other ages and their prospects are declining, despite the recent recovery in the jobs market, the TUC warns today (Sunday) ahead of a new report on full employment to be published tomorrow.
But this improvement is not being felt by young people who aren’t in full-time education, or who have basic or no qualifications. Their prospects have deteriorated rapidly over the same period.
The job situation facing young people outside full-time education is particularly alarming, says the TUC. Back in 1998, three-quarters of young people who weren’t studying were in work – higher than the employment rate for all workers at the time (71 per cent). However, these youngsters’ job prospects fell behind that of other workers in mid-2005 and have continued to decline ever since.
The job chances of young people not in full-time education converged with workers aged 50-64 last summer – a remarkable turnaround given that they were 25 per cent more likely to be in work than older workers back in 1998.
The TUC report also shows that fewer than half of those who have no qualifications are in work, while the employment rate for those who only have basic (level 1) qualifications has fallen to around 63 per cent.
Unless action is taken, the prospects for low-skilled youngsters and unqualified people of all ages will continue to deteriorate, warns the TUC. This will make it impossible for any government to achieve full employment, despite all mainstream political parties now being committed to it.
> Are they ? They say they are, but unemployment keeps wages down and generates opportunities for eroding worker’s rights – which is what the big businesses who ultimately call the shots really want.
Maybe we all should start getting our heads around the idea that full employment is impossible, and use that as our starting point ?
The reduction in the ‘jobs disadvantage’ facing lone parents, disabled, black, Asian and older workers in the last two decades shows that strong growth and targeted government support can make a huge difference, says the TUC. It would like to see the government increase investment in schemes to unemployed and poorly qualified youngsters so that their fortunes can be turned around too.
> Oh no, not another unemployed course ! The only winners there are the poverty pimp organizations who make a mint running them.
The report makes a number of recommendations to help raise employment rates for young people not in full-time education, including:
- Offering targeted employment support programmes, such as a job guarantee for any young person out of work for at least six months
- Identifying low skills as a reason to provide more intensive employment support
- Establishing bodies in each industrial sector so that government, unions and employers could work together to identify skills gaps, promote decent workplace standards and fair pay.
TUC General Secretary Frances O’Grady said:
“All the mainstream political parties now support unions’ long-held commitment to full employment.
“But with job prospects for many young people, and poorly qualified people of all ages, deteriorating it will be impossible for any government to achieve this goal unless radical action is taken.
“Over the last two decades, we’ve learnt that strong growth and proper investment in employment programmes can make a huge difference to people’s job chances. But ministers seem keener on kicking struggling youngsters when they’re down and removing the safety net they need to learn new skills and find work.
“We need to increase funding for employment programmes, for example by guaranteeing a job or training to any young person who’s been out of work for six months or more. Spending more money on jobs support now will save money in the long run by getting more people in work and paying taxes.”
Source – Welfare News Service, 22 June 2014