Reducing unemployment must be a bigger election issue, says TUC
Politicians must be asked harder questions about how they intend to tackle unemployment and secure economic growth the TUC says today (Tuesday) ahead of a week of key economic indicators for the UK.
With unemployment figures published tomorrow, the TUC will be looking at three key ways of judging the health of the labour market:
- Last month saw the number of dole claimants fall by 32,300 - the fastest fall since 1997. Another sharp fall would indicate the UK labour market is recovering well from the recession.
- A fall in the number of economically inactive people (excluding students) to below 5.82 million would show that unemployed people are moving back into work rather than becoming permanently detached from the labour market.
- The number of full-time jobs fell towards the end of 2009. It is hoped the latest figures will show a recovery in full-time employment.
The TUC is calling for more resources for Jobcentre Plus and for the extension of Job Guarantees so that everyone out of work for at least 12 months is offered a real job for at least six months. This offers unemployed people the best possible chance of a permanent return to work, the TUC believes.
A TUC analysis of real terms spending on unemployment benefit shows how tackling unemployment can save money. During the 1980s, when there was very little intervention to help those out of work, government spending on unemployment benefit peaked at £4.8 billion in 1981/82 and remained above £3 billion for much of the decade. Spending peaked at £2.7 billion after the 1990s recession.
Spending after the recent recession is projected to peak at £1 billion and is forecast to fall during the current financial year, largely as a result of action taken by policy makers very different to previous recessions, says the TUC.
Figures published on Thursday are expected to confirm that public borrowing in 2009-2010 was below the Chancellor's original forecast. This, the TUC argues, shows that investing in jobs, which result in both higher tax receipts and lower benefit spending, is the best way to tackle to tackle the deficit.
The preliminary estimate of first quarter 2010 UK GDP growth, to be published this Friday, is expected to show modest growth and a further rise in manufacturing output. With the economy fragile and still reliant on public investment, early spending cuts could plunge the UK back into recession, says the TUC.
TUC General Secretary Brendan Barber said: 'Unemployment is lower in this recession than in previous ones, but that does not mean that it is no longer a problem - and it is disappointing how little it has featured in the election campaign.
'Of course the UK cannot keep a deficit of this size forever, but the sustainable way of reducing it is to encourage growth and get people back to work so they start paying taxes again and no longer have to claim the dole.
'Recent public investment has helped to keep unemployment down. But we are not out of the woods yet. The economy is still reliant on public investment. Cutting back now could plunge the economy back into recession and send unemployment soaring.'
NOTES TO EDITORS:
Public spending on unemployment benefit 1978/79-2010/11 (real terms, 2010/11 prices)
|
Financial year
|
Total unemployment benefits (millions)
|
Financial year
|
Total unemployment benefits (millions)
|
|
1978/79
|
£2,715
|
1995/96
|
£1,588
|
|
1979/80
|
£2,399
|
1996/97
|
£1,278
|
|
1980/81
|
£3,975
|
1997/98
|
£643
|
|
1981/82
|
£4,821
|
1998/99
|
£629
|
|
1982/83
|
£3,973
|
1999/00
|
£597
|
|
1983/84
|
£3,789
|
2000/01
|
£574
|
|
1984/85
|
£3,791
|
2001/02
|
£590
|
|
1985/86
|
£3,615
|
2002/03
|
£631
|
|
1986/87
|
£3,822
|
2003/04
|
£600
|
|
1987/88
|
£3,060
|
2004/05
|
£512
|
|
1988/89
|
£2,160
|
2005/06
|
£549
|
|
1989/90
|
£1,336
|
2006/07
|
£524
|
|
1990/91
|
£1,469
|
2007/08
|
£452
|
|
1991/92
|
£2,558
|
2008/09
|
£757
|
|
1992/93
|
£2,723
|
2009/10 (forecast)
|
£1,079
|
|
1993/94
|
£2,487
|
2010/11 (forecast)
|
£893
|
|
1994/95
|
£1,927
|
|
|
Source: Benefit expenditure tables and caseload tables, DWP http://research.dwp.gov.uk/asd/asd4/expenditure.asp
Source - TUC
Posted Date: 20th Apr 2010