Guest Blogpost from Richard Lynch: Another bad year for jobs?

Unemployment
Unemployment (Photo credit: born1945)

2011 was a bad year for unemployment and underemployment and, if the latest Labour Market Statistics are any guide, 2012 looks like being at least as bad. These statistics, which mainly cover the three months to end January 2012, show that:

Unemployment was 2.67 million, up 28,000 over the quarter and 148,000 over the past year. The unemployment rate was 8.4% of the economically active population, up 0.1% on the quarter and at a level which was last exceeded in October 1995 (when John Major was Prime Minister).

Unemployment amongst JSA claimants was 1.61 million in February, up 7,200 on the previous month and 162,000 on the previous year. This left the claimant rate at 5%, unchanged from January but up 0.5% on the previous year.

Youth unemployment was 1.04 million, up 16,000 over the three months to end January and equivalent to 22.5% of economically active 16-24 year olds. However, separate figures showed that the unemployment rate for black youth has been rising at almost twice that for white youth and that unemployment amongst young black men has risen from 28.8% to 55.9% in the past three years.

Underemployment also increased with the number of people working part-time because they couldn’t find full-time jobs up 110,000 to 1.3 million, the highest figure since comparable records began in 1992.

On the slightly less negative side, there was a fall in long-term unemployment – by 12,000 in the number of those unemployed for over a year and by 25,000 in those unemployed for over two years. However this still left 855,000 in the former category and 405,000 in the latter. There was also a fall in the economically inactive rate for 16-64 year olds not working but not included in the unemployment figures. Numbers in this group fell by 27,000 to 9.3 million, giving an inactivity rate of 23.1%. However, the fall was largely due to the effects of a government campaign which contributed to cutting the number of people in the long-term sick category by 67,000 to 2.09 million. In addition to this, the number of job vacancies increased by 15,000 to 473,000 but this still left an average of 5.6 unemployed people chasing every vacancy.

Unfortunately these crumbs of good news appear unlikely to presage a downturn in unemployment, as the economy is still flat-lining, consumer spending and business investment are at historically low levels, companies are still going bust and the recent budget did little to change the situation. The public sector, which cut 270,000 jobs last year, is also continuing to make cutbacks and recent Office for Budget Responsibility projections indicate that a total of 700,000 jobs will have gone by 2015 and 880,000 by 2017. There is also likely to be a post-Olympics jobs cull in certain sectors, including in Balfour Beatty where an estimated 1,500 jobs are believed to be at risk.

Richard Lynch is a Dudden Hill resident. He is a retired Unite the Union official and currently conducts voluntary work on employment rights for the Brent Community Law Centre. He also acts as an accompanying representative for the GMB union.

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Guest Blogpost from Richard Lynch: Job destruction shows no sign of easing

Unemployment is now higher than it was at the worst point of the recession and odds are shortening that it will match Thatcher’s three million in the next year. The latest figures, from the January Labour Market Statistics, are for the three months to the end of November 2011 and show the following:

 

Overall unemployment increased by 118,000 (1,300 a day) to 2.68 million, giving an unemployment rate of 8.4% – the highest since John Major was Prime Minister 17 years ago.

The number unemployed for over a year was 857,000 and the number unemployed for over two years was 424,000.

 

Youth unemployment continued to rise, with an increase of 52,000 to 1.04 million, making the unemployed rate for 16-24 year olds 22.3%.

 

The number of unemployed people claiming Jobseeker’s Allowance rose, although by a more modest 1,200, to 1.6 million, giving a claimant count of 5%.

 

The inactivity rate (16-64 year olds who are not working but are not included in the unemployment figures) fell slightly to 23.1% but that still leaves 9.29 million people, including home makers, long term sick, early retirees and those who have simply given up trying to find work, in this category.

 

The number of people in part time employment rose to 7.86 million, and the number working part–time because they couldn’t find a full-time job rose to 1.31 million, the highest figure for 17 years.

The number of self-employed people also rose, to a record 4.14 million, as more people are forced to go self-employed after failing to find a job or because employers are increasingly changing employees’ contracts to self-employed, so they can get out of paying the minimum wage, statutory holidays, sick pay and NI contributions.

The word “rose” features a lot in this article but there’s nothing rosy about the picture it paints on unemployment and under-employment in Britain today. And all the signs are that things are going to get a lot worse.

Richard Lynch is a Dudden Hill resident. He is a retired Unite the Union official and currently conducts voluntary work on employment rights for the Brent Community Law Centre. He also acts as an accompanying representative for the GMB union.

Guest Blog Post: Richard Lynch on the worst unemployment for 17 years

The announcement, earlier in the winter, that 80,000 people had applied for the 18,000 temporary Christmas jobs advertised by Royal Mail, showed how bad unemployment has become under the coalition – and the latest Labour Market Statistics have confirmed it. These showed, amongst other things, that there are now more people out of work than at any time since 1994, when John Major was Prime Minister, and that youth unemployment is now higher than at any time since the 1980s, when Thatcher was in power. And all the indications are that it is going to get worse.

According to the statistics (which mainly cover the quarter to end September 2011):

  • Overall unemployment increased by 129,000 to 2.62 million, or 8.3% of the economically active population, the highest figure for 17 years.
  • The number of people unemployed for over a year increased by 31,000 to 868,000 and the number unemployed for over two years increased by 13,000 to 422,000.
  • Unemployment amongst 16-24 year olds increased by 67,000 to 1.02 million, giving a youth unemployment rate of 21.9%. This is the highest youth unemployment has been since 1992 when current records began, but previous records suggest that the figures haven’t been this high since the mid 1980s.
  • The number of economically inactive people (not included in the unemployment statistics) increased by 64,000 to 9.36 million, or 23.3% of 16-64 year olds.
  • The number of people claiming Jobseeker’s Allowance (JSA) increased by 5,300 to 1.6 million, giving a claimant count of 5%.
  • The number of job vacancies increased by 7,000 to 462,000, leaving 5.67 unemployed people chasing every vacancy. Haringey in north London (where the summer riots began) is the hardest place in Britain to find a job, with 22.6 dole claimants chasing every vacancy. Lewisham in south London is the second hardest place to find a job, with 21.9 claimants chasing every vacancy.

The coalition is blaming everybody but themselves for this disaster and is shedding bucket loads of crocodile tears for unemployed youth in particular. Their Work Experience Programme is supposed to help young people into work by providing unpaid work experience in supermarkets and other big businesses to young JSA claimants. However, it has recently emerged that anybody accepting an unpaid placement on this scheme will have to continue working for eight weeks, for their JSA payment only, unless they opt out of the programme in the first week. And if they do leave, they can have their Jobseeker’s Allowance cut. So much for slavery being abolished!

*Update: October’s statistics have been published since the above article was written. These show that unemployment has risen again, by 128,000 to 2.64 million.

Richard Lynch is a Dudden Hill resident. He is a retired Unite the Union official and currently conducts voluntary work on employment rights for the Brent Community Law Centre. He also acts as an accompanying representative for the GMB union.