The ‘Dear Leader’s Children’

A major political headache is how to ensure the recession doesn’t claim another lost generation. Official figures suggest that nearly 1 million people under the age of 25 are already on the dole, with a further 1.5 million being economically inactive. These figures will only get worse. Polly Toynbee thinks that Germany is pulling out of recession because they have the answer:

‘Labour’s efforts are directed towards getting people into work. But Germany focuses on stopping people falling out of work, by contributing to wages. A study this week says a ¤6bn scheme prevented a major rise in unemployment, and helps explain why Germany is already pulling out of recession.

Closer to home, Wales has a similar, though smaller scheme: ProAct has paid 88 employers to keep on 5,577 workers so far, in viable firms on short-time working. At a cost of £13m, job for job that is cheaper than Whitehall schemes.