Jobless figure is rising

Submitted by Anon on 26 September, 2008 - 10:53 Author: Tom Unterrainer

As the economic crisis generalises — creeping out of the financial markets and into the productive economy — material effects on working-class lives begin to hit home. Along with rocketing costs of living and house repossessions, unemployment looks set to increase.

According to predictions from the TUC, the number of people out of work for more than one year will double by the end of 2009. Long-term unemployment (as measured by the government) could increase to 700,000 and the total unemployment levels will increase to over two million.

Official figures show that in the three months up to June unemployment rose by 5.4% to 1.67 million, 5.5% of the total working population. According to the Office for National Statistics, in the three months up to July nearly 140,000 people lost their jobs.

These newly unemployed workers face one of the harshest benefit regimes since the foundation of the welfare state. The “Job Seeker Allowance” scheme involves a series of interviews, a six-month “trial” and then re-assessment. Those between the ages of eighteen and twenty four receive lower payments. If you happen to have savings — as many workers do, after years of being told by Tory then Labour governments that this is the “responsible” thing to do — you may not be entitled to benefits at all. And if you haven’t been paying National Insurance contributions for long enough, you are penalised further.

At the same time, the employment rate is falling: down 0.2% to 74.7%. Although this is still a fraction of a percent above the employment rate at this point last year, there is every reason to believe it will dip further.

In the previous period, the overall number of job vacancies was high — meaning that those out of work had a reasonable chance of finding a job. That many of these jobs are low paid, in poor working conditions and, of course, with no union representation didn’t bother the government. But the effects of the economic crisis have a dual effect.

As workers are being laid-off, shrinking the workforce, the pool of available jobs also starts to shrink. Employers are recruiting fewer and fewer workers as the prospects for the economy continues to darken.

Both of these factors contribute to a growing pool of unemployed labour and intensified competition of the job market. Those in work will feel less secure about their jobs and the bosses will put the pressure on — intensifying work and attempting to worsen pay and conditions.

This situation is not inevitable. A combative labour movement can ensure that jobs are saved and that those in work continue to win improvements in pay and conditions. The labour movement should fight all threats of redundancies, demand that firms “open their books”, subjected their finances to the scrutiny of the workers and their unions and oppose massive pay-off’s to the bosses.

At the same time, there should be a campaign against the current stringent benefits system, a simplification of the processes, decent education and retraining and a living wage for the unemployed.

This website uses cookies, you can find out more and set your preferences here.
By continuing to use this website, you agree to our Privacy Policy and Terms & Conditions.