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
Self-employment accounts for 44 per cent of the net rise in employment since mid- 2010, with pensioners, part-time workers and ‘odd-jobbers’ the fastest growing groups of Britain’s new self-employed workforce, the TUC says today, ahead of the latest employment figures published later this week.
The TUC analysis shows that despite self-employment being a relatively small part of the UK jobs market – just one in seven workers are self-employed – it has accounted for 44 per cent of all employment growth since the last election.
Workers aged 50 plus account for half the increase in self-employment, with self-employed workers aged 65 and over the fastest growing group in the labour market (increasing by 29 per cent since the end of 2010).
Over 40 per cent of all the self-employed jobs created since mid-2010 are also part-time. The TUC is concerned that many people are only taking this kind of work because they are unable to find good quality employee jobs which provide the stable employment they really want.
The TUC’s analysis also shows that the number of people starting their own businesses has fallen in recent years, in spite of rising self-employment. The biggest growth areas of self-employment since mid-2010 have been people working for themselves (up 232,000), freelancing (up 69,000) or sub-contracting (up 67,000).
The number of self-employed people who either run a business, or are a partner or sole director in one (positions usually associated with entrepreneurship) has actually fallen by 52,000. These figures show that rising self-employment is part of a wider shift towards insecure employment, rather than as a result of a growing number of people starting up new companies as ministers like to claim, says the TUC.
Self-employment has been going up steadily since early 2008, even when unemployment was rising sharply, and has increased even more in recent years.
The TUC is concerned that the growth of self-employment is at the expense of more secure employee jobs. Many newly self-employed workers do the same work as employees but with less job security, poorer working conditions and often less take-home pay, says the TUC.
Other forms of self-employment – for example selling goods online or registering as self-employed to do the occasional ‘oddjob’ – tend not to pay enough to make a decent living, says the TUC. Recent figures from Citizens Advice suggested that self-employed workers are as likely to have debt problems as unemployed people.
Self-employed workers also have no right to paid sick, holiday, maternity or paternity leave, redundancy pay or protection against unfair dismissal – a particular problem for self-employed workers who are sub-contracted to another employer.
The government is also planning to exempt most self-employed workers from vital health and safety protections in the Deregulation Bill currently making its way through way through Parliament.
Self-employed workers are often poorly paid, says the TUC. Recent Resolution Foundation research found that earnings from self-employment fell by a fifth between 2006 and 2010, while official figures published by Parliament found that the average annual income from self-employment is less than £10,000 for women.
The TUC is concerned that insecure work including self-employment, agency work and zero-hours contracts are becoming a permanent feature of the labour market, even as the economy recovers. The growth of casualised work is likely to continue to hold back wages, and prevent people from having the kind of secure employment they need to pay their bills, save money and plan for the future, warns the TUC.
TUC General Secretary Frances O’Grady said: “Self-employment accounts for almost half of all the new jobs created under this government.
“But these newly self-employed workers are not the budding entrepreneurs ministers like to talk about. Only a tiny fraction run their own businesses, while the vast majority work for themselves or another employer – often with fewer rights, less pay and no job security.
“While some choose to be self-employed, many people are forced into it because there is no alternative work. The lack of a stable income and poor job security often associated with self-employment makes it hard for people to pay their bills, arrange childcare, plan holidays or even buy or rent a home.
“The economy is finally back in recovery yet people’s wages are still shrinking and many are unable to find stable employment. Until we see decent pay rises and better job security, working people will continue to feel that the recovery is passing them by.”
Source – TUC, 14 April 2014