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Sunday, 21 April 2013

The true story behind Britain’s unemployment figures

We were told this week that official unemployment jumped-up this week to over 2.5 million in Britain but this is a false figure in many ways. You are classed as employed if you do two or three hours a week that is so called employment. If you are self employed and sell a few things a week that is seen as employed. Also if you don’t sign on for Jobs seakers allowance JSA you are not picked up by the system so effectively not classed as unemployed even though clearly you are the government simply are not aware of you. All this is designed to mask the true figures of unemployment in this country. For a long time the official unemployment figures have defied gravity with the real economic situation seeming to not fit with the labour market figures. I’ve blogged before how much business’s m may be hoarding labour as the cost of re hiring and retraining would be extensive. As the crisis deepens and no sign of a recovery of any real magnitude is forthcoming these workers will be let go. unemployment could be as high as 6.3 million in the UK if a different counting measure was used, highlighting the true scale of joblessness, according to a new report from the TUC. The TUC said the higher figure - more than twice the official total - was revealed using an American measure, which includes people in part-time jobs because they cannot find full-time work and recent redundancies. The jobless total increased to 2.5 million last week and is expected to rise again in the coming months as the cuts deepen. But the TUC study suggested the actual number of unemployed people in the UK could be 6.3 million, which would be higher than any point since the early 1990s. Under-employment, which counts those doing temporary or part-time jobs because they cannot find permanent, full-time work, has risen to a record 1.9 million, according to the research. The TUC said temporary jobs were better than unemployment, but added that they tended to be low paid, insecure and offered little or no career prospects. Officials called on the Government to acknowledge the scale of the jobs "crisis" rather than repeat the "ill-informed" claim that there were plenty of jobs available. This jobs crisis is not confined to those out of work. Nearly two million people are being forced to take low-paid, insecure, short hours jobs because of the lack of proper full-time employment. This means people are taking home much less pay, which is putting a real strain on family budgets. "When ministers say there are plenty of jobs out there, they are ignoring the sheer numbers of people looking for work, as well as the suitability and location of the jobs available. "Rather than seek to blame unemployed people for being out of work, the Government should start helping them by putting proper resources into employment schemes. The report followed a study by the Chartered Institute of Personnel and Development which showed that job prospects are set to worsen in the coming months as firms make workers redundant. A survey of 1,000 employers also revealed a further widening of a North-South divide in the jobs market. There are 600,000 more people working part-time who say they want to work full-time, compared to three years ago, said the organisation. Graeme Cooke, IPPR Associate Director, said: "Every month that goes by, the urgent need for the new Youth Contract continues to grow. It is now almost a year since the Future Jobs Fund stopped giving young people a job guarantee after a year of unemployment. "The next priority should be areas of the country experiencing the combination of both high unemployment and a low number of vacancies, while the prospects of those over 50 and unemployed for more than a year are also of serious concern. "The longer someone is unemployed, the less likely they are to ever return to work. Being out of work for more than a year can have a scarring effect, making it harder to get a job as well as having a negative impact on one's health and well-being. This means that even when employment starts to pick up again, they will find it hard to compete with other jobseekers and could find themselves permanently shut out of the jobs market.

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