More Tory disinformation on the economy

Now, Iain Duncan Smith is at it.

More misinformation from another cabinet minister at the Tory jamboree in Cardiff. Iain Duncan Smith told the conference that unemployment was less of a problem than some have suggested. "It's short-sighted to say there aren't any jobs at the moment. The fact is, there are around half a million vacancies in the economy at the moment," he said. "It's not the absence of jobs that's the problem. It's the failure to match the unemployed to the jobs there are."

OK, let's take a look at this dumb claim. It is true that there are two and a half million unemployed people and half a million vacancies; so there are five unemployed people chasing each recorded vacancy. But to put that in context, exactly two years ago, there were two million unemployed and 677,000 vacancies -- or one vacancy for every three unemployed people. So, at the very least, it is harder to find a job than it was two years ago, as there aren't enough jobs. Doesn't take a rocket scientist to work that out.

It turns out that capitalist economies need some unemployment to allow for the rebalancing away from goods that people don't want to goods that they do. That means there is an available pool of labour for these new firms to hire from. It is also efficient for an economy to allow people to move between jobs they don't like to ones that they do. That is why we subsidise search. The problem comes when unemployment durations lengthen, as they have recently. Today, a third of the unemployment durations are more than 12 months long, compared with 22 per cent two years ago. Skills deteriorate when no jobs are available, which is why recessions hurt.

A further problem is that there is a mismatch between the skills the unemployed have and those required for the vacancies. There is also the problem that the vacancies are in one place and the unemployed live elsewhere. There are jobs available as experienced brain surgeons in London but the unemployed are 22 years old, with no experience and no qualifications and live in Middlesbrough. Nearly a million of the total stock of unemployed people are under the age of 25. How exactly are they going to fill the vacancies that require experience? The only way to get a job is to have experience but the only way to get experience is to have a job.

Over the past two years, overall employment fell by 210,000 while employment of those aged between 16 and 24 fell by 351,000. In contrast, the employment of those aged between 25 and 34 increased by 171,000, while that of those who are 35 and over fell by 30,000. This doesn't look like a failure to fill available vacancies. The jobs have gone. Plus, the government is reducing funding for training, so that is going to make it harder to solve the mismatch problem. And there is a public-sector hiring freeze. Too many unemployed, chasing too few jobs.

The problem is the lack of vacancies, not the fact that the unemployed don't want to get on their bikes. It is not their fault, as much as you might like it to be. The unemployed are there involuntarily and not by choice. Sorry Iain, back to the drawing board. There just aren't enough jobs at the moment and things are going to get much worse -- and soon.

David Blanchflower is economics editor of the New Statesman and professor of economics at Dartmouth College, New Hampshire

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear