Unemployment

How can employment and unemployment go up at the same time?

The employment level has risen since the election, according to today’s figures — albeit only slightly, from 29.0m to 29.1m. But unemployment’s up too: from 2.46m to 2.67m. So how come we’ve seen both more jobs and lengthening dole queues? Well, that’s because the ‘economically active’ population (people who are in work or ‘have been actively seeking work and are available to start work if a job is offered’) has grown faster than employment has. There are now 31.8m people in the UK who fit that description, an increase of 320,000 since the coalition came to power. But with only a 110,000 rise in employment, that means the number of

The Tories are extending their lead on the economy

It looks like Dave’s still made of Teflon. Even after the economy shrank by 0.2 per cent and the unemployment rate rose to its highest point since 1995, the public still think his party is better at handling the economy than Labour. And the Tories’ lead on what is by far the most important issue to voters hasn’t just survived all this bad economic news — it’s actually grown. Before Christmas, 31 per cent said the Tories would best handle the economy, against 27 per cent for Labour. In today’s YouGov poll, that four point lead has trebled to become a 12 point lead — the biggest since autumn 2010:

The bias towards migrant workers

Why are you never served by a Londoner in a London branch of Pret A Manger? I asked this in the Telegraph recently, and yesterday’s Evening Standard had a great piece tracking down four who applied, and were rejected without an interview. Some suspect there is a bias in favour of immigrants: if your name doesn’t sound exotic, game over. I doubt that a company like Pret, whose most valued ingredient is the famous enthusiasm of its staff, can afford to discriminate in any way. But the wider point is a very serious one: that British employers have come to prefer immigrants, believing that they work harder. And that a

Why the government shouldn’t be confident that employment’s rising

No two ways about it: today’s employment figures are difficult for the coalition. The unemployment figure’s up for the seventh month in a row, and now stands at 2.68 million — the highest since 1994. And the unemployment rate — up to 8.4 per cent — is at its highest since 1995. It doesn’t look like getting better anytime soon, either: unemployment’s predicted to carry on rising at least until the end of the year, possibly matching the three million peak of the early ‘90s. In its defence, the government claims that employment is rising too. Today’s figure of 29.1 million in employment is about 150,000 higher than it was

Lloyd Evans

The lesson from today’s PMQs? Unemployment makes Cameron uncomfortable

What’s the point of Ed Miliband? Does the Opposition leader have any purpose in life other than to provide ritual entertainment for the Tory wrecking crew at PMQs? Having spent the New Year listening to lethal attacks from his dearest supporters, Mr Miliband has now seen his leadership shrivel to a pair of policy statements which rival each other in desperation and barminess. The first, outlined by Liam Byrne this morning, is a fantasy tax on banking, ‘to create 100,000 jobs’. The second is Labour’s new position on the government’s austerity programme. This would baffle the dippiest and trippiest resident of Alice in Wonderland. We hate the cuts. We back

James Forsyth

Cameron endures his monthly unemployment grilling

Downing Street is painfully aware that one PMQs in four is going to be about unemployment. Today, with the monthly figures having come out this morning, Miliband led on the subject. The Cameron-Miliband exchanges were not particularly enlightening. Miliband said ‘it really is back to the 1980s’ and Cameron mocked Miliband for being ‘so incompetent, he can’t even do a U-turn properly’. In the backbench questions, Cameron wasn’t put under much pressure. The news of the session came when he said in response to a question from Andrew Rosindell that the National Security Council had devoted a whole session to the Falklands yesterday. At the end of the session, there

Cutting immigration won’t help youth unemployment

Reading the papers today, you could be forgiven for thinking that MigrationWatch’s new report was a smoking gun against immigration. Here we have a study that links immigration to unemployment, in the face of nearly all previous research that has found no such link. However, looking at the MigrationWatch piece itself, it quickly becomes clear how implausible these claims are. The MigrationWatch report centres on a comparison of rising youth unemployment and rising immigration from the ‘A8’ countries – the Eastern European states that joined the EU in 2004. The correlation between the two is remarkably weak. During the initial rise in immigration between 2004 and the end of 2008,

The Autumn Statement: What you need to know

We’ve been posting some of these charts on Twitter, but here they are, collected, for CoffeeHousers. You can expect more as we mine deeper into the OBR’s supplementary document. Do shout out, also, if you spot anything yourself. 1. Weaker growth — except for a very optimistic figure for 2015 2. Higher debt — both in real terms and as percentage of GDP   3. Osborne borrowing more than he’d hoped 4. More persistent — and deeper — ILO unemployment 5. The squeeze continues until 2013

A Clegg-up for young workers?

There was a time when Nick Clegg was the most agile and persistent defender of the coalition’s deficit reduction programme. But now — although he’s still got it in him — he is more often wheeled out to announce some spending wheeze or other. A couple of weeks ago, it was the next instalment of the government’s regional growth fund. Today, it’s a £1 billion scheme, spread out over three years, to encourage companies to take on young people. This latest scheme is one of those that looks very neat on paper. Put aside questions about how it will be funded, and what we have is a plan whereby £2,275

Ed looks more dead than deadly

If Roman Abramovich owned the Labour party, Ed Miliband would be toast by now. The floundering opposition leader gave the sort of inept, predictable and ill-organised performance at PMQs that would get a manager sacked in the Premiership. It scarcely helps that Mr Miliband seems to prepare for these sessions like a deluded psychic. He and his team of prophets at Labour HQ clearly believe they can foretell what the prime minster will say and how best to smash his answers to pieces. Referring to the rise in unemployment, Mr Miliband began by attacking the PM for scrapping the Future Jobs Fund in March. He boasted, rather weirdly, that ‘under

200,000 extra working pensioners

Despite – or perhaps because of – the recession, pensioner employment has increased dramtically over the past few years. In his Telegraph column today, Fraser remarks on this important but largely ignored trend in Britain’s workforce. ‘A million jobs have been lost since the Great Recession began’, he says, ‘but the number of pension-aged people in work has increased by 200,000.’ Here’s that phenomenom in graph form: Why has this happened? Fraser puts his finger on one important factor: ‘Crucially, they pay less tax. A pensioner manning the tills in Tesco will take home 12 per cent more than a working-age colleague on the same salary.’ You see, employees over 65 don’t

Miliband’s ‘responsible capitalism’ requires deregulation

Despite yesterday’s gloomy unemployment figures there is, it turns out, good news for the government buried in current labour patterns: the total number of hours worked in the last three months has risen by three million. The bad news is that employers are currently filling this demand by getting current employees to work longer hours (average weekly hours over this time period rose by 0.3 to 31.5), rather than taking on new workers. Presumably this is because it is so much cheaper, and less risky, to do so.   This should come as an encouragement to the government, as they search for ways to bring about growth. Scrapping or regionalising

Unemployment rate highest in 15 years

Today’s unemployment figures do not make for cheery reading. Youth unemployment is up to over a million and unemployment overall has reached 2.62 million, meaning that the unemployment rate is the highest it has been for 15 years. Laura Kuenssberg tweets one particularly striking statistic: ‘Number of UK Nationals in work fell 280k compared to this time last year, number of non-UK Nationals in work increased 147k over same time’ This suggests that it’s a touch too simple just to say that there are no jobs out there. It also means that we really should think about why non-UK nationals are proving so much more adept at finding work than

If Clegg wants to reduce youth unemployment, then he’s going to have to look at regulation

Nick Clegg’s interview in The Times today presages a major Lib Dem effort to try and promote policies to reduce youth unemployment. With figures out on Wednesday expected to show youth unemployment going over a million, the Lib Dem leader is keen to show that the government is acting. But as The Times reports, the quad—Cameron, Osborne, Clegg and Alexander—are divided on what to do about the matter. The Tories are keen to do Beecroft for young people, removing some of the employment protections that make firms so reluctant to hire new staff. But given how the Lib Dems have set themselves so firmly against the Beecroft review and its principal

Labour aren’t capitalising on the government’s woes

Ipsos MORI’s latest monthly political monitor is just out, and it doesn’t bring much good news for either the government or the opposition. 63 per cent of respondents are dissatisfied with the government and 54 dissatisfied with David Cameron — both the highest proportions since the election. On the public’s number one issue — the economy — just 36 per cent say the government’s done a good job. And even wose, a whopping 77 per cent say they’ve done a bad job of keeping unemployment down — hardly surprising considering unemployment has risen by 100,000 since the election. But while all this presents a great opportunity for Labour, other numbers show how

Time to scrap the minimum wage?

Today’s youth unemployment figures are simply appalling. It’s now 21 per cent amongst the under-25s, above the peak of 18 per cent seen under the 1990s recession. For the first time since then, Britain’s youth joblessness is worse than the European average. This is a tragedy, and not one we should accept as being a grimly inevitable aspect of the recession. Ed Miliband said in PMQs that a million young people are on the dole: a statistic everyone should get angry about. And we can think of what has gone wrong. The above graph shows how Britain has nothing left to boast about in unemployment. Blair used to love heading

The Winter Fuel Allowance is indefensible

Freed from the shackles of elected office, Steve Norris remains an electrifying speaker. He is also refreshingly honest. So, when I met the 66-year-old former mayoral candidate at a Tory conference fringe on the future of London, he was only too happy to admit how spent his Winter Fuel Allowance: “I’m amazed by the Chancellor’s annual gift. I spend it on Claret,” he said. In fact, he said that when paid to the wealthy, the allowance is “a complete waste of money” and “a bribe to older voters”. I mention this only because the Allowance was referred to again in a different context this week: during David Cameron’s own address.

A brutal no score draw at PMQs

Cameron and Miliband went six rounds on the economy at PMQs. Miliband tried to portray Cameron as just another Tory who thinks that “unemployment is a price worth paying”. Cameron, for his part, wanted to paint the Labour leader as someone whose policies would send Britain tumbling into a sovereign debt crisis. At the end, it felt like a bit of a no-score draw. Interestingly, Cameron stressed that “every week and every month, we’ll be adding to that growth programme”. We’ll have to see whether he’s talking about more small-bore measures, or something bigger on infrastructure investment. Labour had a new tactic today, trying to fact-check all of Cameron’s answers

Clegg sounds a dire warning on the economy

Nick Clegg gave a speech on the economy earlier this morning. As Tim Montgomerie notes, Clegg came close to admitting that the economy is nearing crisis. He said, “The economic context is much worse than before. Yes, facts have changed” and added that the “government is not blind to deterioration in economic environment”. These warnings tighten a knot in already sick stomachs; but, with the Eurozone mired in a crisis that is fast becoming existential, banks under mounting strain, rising unemployment, widespread talk of further Quantitative Easing and the very public internal debate in the coalition about the need for tax cuts, Clegg’s comments don’t come as a great surprise.  He also introduced

Right to reply: The impact of immigration on the labour market

Yesterday, we introduced our new “Right to reply” series, where outside writers take on some of the ideas and arguments raised on Coffee House. In that case, it was the IPPR’s Matt Cavanagh replying to Fraser’s recent post on immigration and the labour market. Here’s another reply to the same post, this time by Jonathan Portes of the National Institute of Economic and Social Research: Myths abound when it comes to the effect of immigration on the labour market — and the most damaging of these is that most or all “new jobs” go to migrants. Although I agree with Fraser Nelson’s general views on immigration, he is misleading on this one point.