Two million unemployed now, three million unemployed later?

The Left Economics Advisory Panel reacts to the latest bad economic news:

Unemployment figures released today show that more than 1.92 million people were out of work by the end of November 2008. This figure is the highest since the year Labour came to power in 1997.

John McDonnell MP, LEAP Chair, said:

“On this basis, unemployment today is over two million. This is a depression not just a recession, and the Government’s measures have failed to protect people and preserve their jobs.

“A lack of planning and radical action makes it almost inevitable that unemployment will hit 3 million with the consequent human suffering.”

Graham Turner, author of The Credit Crunch and LEAP economist, said:

“The remorseless rise in unemployment continues and looks set to accelerate sharply in 2009. In addition to the job cuts, workers are seeing their pay squeezed. Average earnings growth slowed again in November to 2.7% y/y, the lowest increase since February 2003, and well below the headline inflation rate of 4.1% for that month. Real earnings continued to fall”.

“And the recession continues to take its toll on the public sector finances, with the current budget deficit rising from £25.9bn in the year to November, to £33.3bn in the year to December. The rate of deterioration in the deficit number is accelerating.”

Women workers will be hit especially hard by this recession, compared to the last one, reports the TUC:

During the downturn women’s redundancy rate has increased more quickly than the male rate. From January – September 2008 the female redundancy rate increased by 2.3 percentage points, almost double the rate of male increase (1.2 percentage points). It remains to be seen whether this trend will continue, leading to an even higher rise in the redundancy rate for women, or whether it will now level off to the same rate of increase as men.

TUC General Secretary Brendan Barber said: ‘This is going to be an equal opportunities recession. Job losses in sectors where men predominate such as manufacturing and construction are now being balanced by job losses in retail and hospitality where more women than men work.

“But job losses among men are still more likely to hit the headlines as women tend to work in smaller workplaces where redundancies go unnoticed by the media.

“But with so many households absolutely dependent on women’s wages the Government must ensure that women benefit in full from programmes to help those facing redundancy and the long term unemployed.”

Yesterday’s Guardian had a letter signed by Labour MPs, trade union leaders, and anti-poverty campaigners, calling on the government to increase Job Seekers’ Allowance by 15 pounds a week:

A single person over 25 years old receives £60.50 per week, dropping to £47.95 for those under 25. The UK is near the bottom of the western European league table in comparative rates of unemployment benefit.

The gap between benefits and earnings has widened significantly over the past 30 years because jobseeker’s allowance (JSA) has increased at a rate below inflation. If it had increased in line with earnings, an unemployed person would receive in excess of £110 per week.

Politicians and government advisers argue that higher benefits would be a disincentive to work, but a wealth of evidence suggests that the descent into poverty has been a greater cause of economic inactivity. Benefit rates must be high enough to allow people to live a healthy lifestyle for physical and mental wellbeing. To achieve this, our long-term aim must be to substantially improve the miserly rates paid at present.

The government has rightly made a priority of increasing demand to maintain employment at as high a level as possible, and recognised the importance of measures that will have a speedy impact. Unemployed people, because of their low benefits, are particularly likely to spend any increases they receive as soon as they receive them – pound for pound, raising JSA levels will do more to fight off the recession than any other fiscal stimulus.

The Morning Star gets to The root of the problem:

THE most misleading statements that any government makes regard the problem of unemployment.

Certainly, unemployment is rising at an appalling rate and, given that the figures released on Wednesday relate to the quarter to November, the jobless count is undoubtedly over 2 million now.

And that only relates to those who the government hasn’t managed to sweep under the administrative carpet by reclassifying them, sticking them on makeweight, irrelevant courses in jobseeking or otherwise losing them in the flurry of apparently contradictory figures.

Include them and the jobless figure could easily double.

Add on those who, when they become unemployed, are immediately expunged as being too near retirement to count, allow for those who are forced into McJobs at insulting rates of pay and do not use the skills that they have acquired over a lifetime of work and you could probably double that figure again.

Manufacturing jobs are vanishing at an alarming rate, with 86,000 disappearing in the last quarter.

Around 225,000 people became redundant across the economy in the same period and almost every indicator shows that Britain is not in a recession but a full-scale depression, as MP John McDonnell has pointed out so clearly.

The misleading element comes in several guises. When Employment Minister Tony McNulty attempts to harangue young people about the “half a million vacancies that are available right now,” he fails to add that they are out there because they are either not in the same places as the jobless, do not match their skills profile or are so appallingly badly paid that only the starving and desperate would touch them with a bargepole.

He also fails to point out that, even taking government statistics as gospel, there are now over four people unemployed for every vacancy and that employers are seizing the opportunity to downgrade wages even further.

Nor does anyone in government admit that its disgraceful neglect of the state pension has driven hundreds of thousands of pensioners to continue working past retirement age since that is their only way to keep body and soul together, which cuts job availability even further.

But the worst misinformation is the statement that unemployment is the root problem.

Quite simply, it is most certainly not. It is an effect, not a cause. At the centre of the problem is the lack of finance for business due to the disgraceful conduct of the banks in clamping down on lending so far that it is strangling the economy and any chance of recovery.

And right at its heart is a government which refuses to force the banks into compliance, despite the fact that they are now largely owned by the taxpayer.

As GMB general secretary Paul Kenny acutely observed: “Putting taxpayers’ money into the banks is not working in terms of getting that money to companies. A change of approach is urgently needed to save job losses in the pipeline.

“The government must take control of the banks already in state hands and use them to do this job.

“The lesson has to be learned quickly that banks are just another public utility that the economy requires to function effectively.”

Mr Kenny, we really couldn’t have put it better ourselves.

Advertisements

Robbie for President!

From this week’s edition of The Socialist:

Vote for Robbie Segal

Stop jobs cuts

Robbie Segal

Robbie Segal

Tens of thousands of retail workers are being laid off. These workers are facing a bleak future, many of whom have been working on low wages for the big retail companies for years. Woolworths is now closed, yet all those workers are getting is the statutory redundancy payments of a measly few hundred pounds.

Robbie Segal

Gordon Brown is promising schemes to create new jobs. But what will these jobs be like? Will they be on decent wages with good working conditions and pensions, or will this be another New Labour gimmick?

Woolworths and other retail workers deserve better than empty promises from Gordon Brown, after all our union Usdaw subsidises New Labour to the tune of hundreds of thousands of pounds.

All companies threatening redundancies should be nationalised but under democratic workers’ control and management. We should open the books and find out where all the profits have gone – profits made by the workers.

I am standing for election to become president of Usdaw because our union needs to be a fighting union. We should be building a mass campaign against job losses but also demanding a minimum wage of £8 an hour without exemptions. The union should be taking workers’ wages and conditions forward, not watching them go backwards.

And why are mainly female and part-time shop workers treated as if they are only earning pin money by the trade union leaders? It is time for all shop workers to get active to build Usdaw as a democratic and independent campaigning trade union.

I’ve been a trade unionist since the age of 19, a Tesco union rep for 21 years; and a member of the Usdaw executive council for nine years.

The election runs from 19 January to 13 February.
Get in touch at:
shopworker@socialistparty.org.uk
for leaflets and other material to help with Robbie’s campaign.

Find out more at Robbie’s site.

Sign the petition against women’s no pay day

Will Peter Mandelson pay any heed? I mean, this is an issue of workers’ rights…

Perhaps his replacement will be more sympathetic (yes, I am betting he’ll not last ’til the new year…)

From the Fawcett Society:

It’s No Pay Day! The day that women receive their last payslip of the year and start working for free is here, so let’s do something about it.

Here’s our quick FAQ to No Pay Day 2008:

What’s the significance of October 30th?

We’ve labelled October 30th Women’s No Pay Day because it signifies the day that women start working for free while men get paid year-round – if you apply the 17% gender pay gap for full-time work to the average salary, it’s the equivalent of women working the last two months of the year for free.

What’s the cause of the pay gap?

Discrimination: it’s estimated by up to 40% of the pay gap is due to straightforward discrimination – so, women being paid less to do work of an equal value or skill level to their male colleagues.

Jobs traditionally done by women are paid less: Society has put a low value of women’s work, even when it’s a skilled job. For instance, we pay people more to look after cars than to care for our children or elderly people.

Few senior or skilled jobs offer flexible working: Mothers often work below their skill level because lower skilled jobs are more likely to give them the flexibility to balance work and home. We need more highly skilled and senior jobs to be available with flexible hours.

Isn’t it just because women work part-time?

No – the pay gap figures are broken down into full-time and part time:

  • Women working full-time earn on average 17% less per hour than men working full-time

 

  • Ethnic minority women working full-time earn on average 20% less per hour than men working full-time

 

  • Women working part-time earn on average 36% less per hour than men working full-time

 

  • …and women working part-time in London earn on average 45% less per hour than men working full-time.

What’s the solution?

Our Women’s No Pay Day campaign is calling for two main things:

Health checks for companies: Mandatory pay audits which would require all organisations to compare the earnings of women and men doing similar work to see if there is a gap

Help for women challenging their pay: Changes to the law to make it much easier for women to take cases to court, and to allow women to take such cases as a group, with the support of unions.

What can I do?

Sign our letter to Peter Mandelson! We’re almost at 1000 signatures – please add your voice to our letter asking for bold reforms to prevent pay inequality taking place. Follow the link below to add your name.

Fawcett supporters across the UK will be holding events to raise awareness of the pay gap today. Watch this space for photos and updates!

For more information about our equal pay campaign, please use the links on the right of this page.