The number of ‘under-employed’ workers in the North East has increased by 16% since the last election, figures reveal.
The underemployed are people who want to work more hours in their present job, like those in a part-time role who want to go full-time.
Analysis by the TUC from the Labour Force Survey shows that since the May 2010 election, under-employment has also gone up more than 20,000, from 127,578 to 148,368 in this region.
The fastest increase, from 9,000 to 11,500, has been among self-employed people who say they are under-employed – a 127% rise.
The TUC says this shows that despite talk of a recovery, continual real wage falls mean more people than ever are looking for extra hours to make ends meet.
North East TUC regional secretary Beth Farhat said:
“Ministers have made much of the UK’s improving jobs figures as a sign that all is now well with the economy. But here in the North East we have suffered the double whammy of rising joblessness and under-employment.
“There are now over 20,000 more people who would like to be working more hours than they are.
“As the squeeze on pay continues, many people don’t have enough money for everyday essentials, let alone the cash to cover any unexpected emergencies.
“With no let up in their financial woes in sight, people are understandably looking to take on more hours just to keep the wolf from the door.
“Without a decent pay rise and the creation of more permanent, secure jobs, under-employment is unlikely to fall any time soon.”
A Department for Work and Pensions spokesman claimed the TUC’s figures were misleading.
“Independent statistics show that there are over 100,000 fewer people who say they are under-employed compared to a year ago, and that full-time jobs account for more than three quarters of the rise in employment since 2010.
“The proportion of part-time workers wanting a full-time job has just seen the biggest annual fall in over two decades.
“The overwhelming majority of those working part-time do so because it suits their circumstances, for example students or those with caring or parenting responsibilities. “
However, when contacted further and asked if the DWP disputed the TUC’s North East figures, there was no further reply.
> I bet there wasn’t… guy’s nose had probably grown so long he couldn’t get near the phone.
Source – Newcastle Journal, 03 Sept 2014
Trade Union Congress (TUC) Media Release:
Unemployment rates and levels of joblessness are higher today than before the recession in every region and nation of the UK and across all working age groups – suggesting that the economy is still less healthy than it was before the recession, the TUC warns today (Monday) ahead of the publication of the latest jobs figures later this week.
Northern Ireland has the biggest gap between its current and pre-recession unemployment rates. Across Northern Ireland unemployment is currently running at 6.9 per cent, 68 per higher today than six years ago, when it was 4.1 per cent. The unemployment rates in Scotland and Yorkshire and the Humber are 50 per cent higher today than before the recession.
The biggest unemployment gap by age group is among young people, with the number of unemployed 16-24 year olds 167,000 higher than six years ago. In the West Midlands for example, there are currently 20,000 more young people out of work than there were six years ago.
In most parts of the UK the jobs gaps for young people are higher than for any other age group. Unemployment levels are only lower now than six years ago amongst 16-24 year olds in the East Midlands and 35-49 year olds in Wales.
Much of the debate around unemployment has been about the rate falling below seven per cent – the trigger set by the Bank of England for possible interest rate rises. However, with over two million people still out of work – half a million higher than before the recession – and many more under-employed it remains far too early for the Bank of England to be considering an interest rate rise, says the TUC.
The number of unemployed people across the UK is still far in excess of pre-recession levels, in spite of the recent upturn in the jobs market, says the TUC. While the size of the economy is likely to return to pre-recession levels soon, unemployment levels are recovering much more slowly and the analysis shows that more needs to be done to get people back into work.
TUC General Secretary Frances O’Grady said: “The recent upturn in the economy has prompted lots of speculation about an increase in interest rates. Those hawks that are keen for interest rates to rise have forgotten that unemployment is still over two million.
“In some parts of the UK, unemployment is 50 per cent higher than it was before the recession. The talk in the City and around Westminster may be about a fast growing economy but the recovery still feels a good way off for millions of people still desperate for work across the rest of the country.
“The government should be doing more to get unemployment down in every part of the UK. High levels of youth joblessness are particularly concerning. The growing talk of an interest rise is a worrying distraction from this far bigger economic and social problem.”
Source – Welfare News Service, 14 July 2014