Unemployment: the facts and the solutions
Unemployment has rocketed in the past three months. How did it get this way? And what can we do to fix it?
UK unemployment has risen to the highest it has been in 17 years. This has especially affected working mothers and 16-24 year olds. The number of young people unemployed has not been this high since 1992, and it looks as though it will keep rising. But what can the government do to bring numbers back down? Is there anything we can do? Or do we just sit back and wait?
Between June and August 2011, unemployment rose dramatically. The overall number of people out of work has risen to a shocking 2.57 million, which means 117,000 more people unemployed over those three months alone. Reports say that around 32,000 women have had to leave their jobs because they cannot afford the rising cost of childcare, and this has raised the number of mothers unemployed to almost 44,000.[1] For 16-24 year olds, it’s risen by double this; unemployment has hit a record high of 991,000, rising by 74,000 in this quarter alone. Ed Milliband has naturally blamed David Cameron for the rise, commenting that one year ago, “The prime minister justified his economic policy by saying unemployment would fall this year, next year and the year after. Isn't it time he admitted his plan isn't working?"[2] Cameron stands by his plans, however, and is adamant that he can lower unemployment. The number of people without work has shrunk by 1.5 million since the early 90s, but if it keeps growing at the rate it has since June, it could easily pass the 3 million mark in the next ten years.
Unemployment varies in different regions; it is shockingly high in the North East, with 1/10 people unemployed. In the East Midlands, there is high unemployment, but low enthusiasm by job seekers to actually work. A survey carried out by businesses in Derbyshire and Nottinghamshire reports that 43% of employers find recruiting new staff difficult, and that many people do not turn up to interviews on time, if at all, and when they do they lack the basic skills needed to work for them.[3] A survey issued by Newsbeat, completed by 27 of the largest UK employers, also reported that they believe the rise in youth unemployment is down to a lack of basic skills. The results of the survey conclude that a lot of young job
lack of jobs causing the rise in unemployment, but a lack of qualified job applicants. George Cowcher, the chief executive of Derbyshire and Nottinghamshire’s Chamber of Commerce, stated that ‘Businesses want to expand, create jobs and develop their workforce, but are hampered by a lack of skills in the local labour market.’[4] If more job seekers had the skills employers are looking for, unemployment could eventually fall; businesses could expand which would also lead to a higher number of jobs on the market and this could help lead us out of the recession. Another way for businesses to expand is by the government handing small businesses grants to get started, or to improve the flow of the economy generally by cutting taxes.
However, even if on paper it seems as though there are several ways in which the government could reduce the unemployment figures, when it comes to putting it into practise it is not that simple. Cutting taxes would mean we would generally have more money, which would make us more likely to purchase things, which would raise demand and eventually increase the amount of jobs on offer. However, due to the government being in debt, it is highly unlikely they will cut taxes anytime soon. Another option would be for the government to hand out grants to the small businesses, this would raise the amount of people opening their own companies and stores, which would also eventually increase the number of jobs available. The government’s debt is also the reason why this cannot happen. The survey Newsbeat carried out reports that companies suggest training young job seekers so that they have the skills needed to acquire work, but again, this requires money, which the government does not have. The only option which the government could actually consider is cutting benefits. The number of people claiming benefits rose to 1.6million in September, so it is doubtful that this could actually happen until there is a drop in unemployment.
There’s no doubt that unemployment will keep growing unless something changes very soon, the only solution that could actually work without conflict is to train up those looking for work, however, the government cannot afford to do this. To job seekers out there, the only advice to give is to try and learn basic skills needed for the job you are applying to, and turn up on time! There is no easy solution to this growing problem but David Cameron insists that the government ‘is going to do everything it possibly can to help get people into work.’[5]
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[1] Bradley, H ‘We are in a she-cession as women suffer most in downturn,’ http://www.mirror.co.uk/, October 14 2011
[2] (2011) ‘UK unemployment total reaches 17-year high’ www.bbc.co.uk, October 12 2011
[3] Barrow, B (2011) ‘Towns with jobs galore... but no one interested in doing them (and many applicants who can't even be bothered to turn up for interview on time)’ www.dailymail.co.uk, October 20 2011
[4] Ibid. (footnote 2)
[5] Ibid. (footnote 1)
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