Don’t get carried away with headline fall in unemployment

Subtantial progress may not come until 2013

The drop in the latest unemployment figures is good news. It is the first time unemployment has fallen in ten months. But underneath the headline fall is bad news for women and some worrying trends that make substantial progress over the next year very unlikely.

Today’s fall in the overall jobless count masks a continuing rise in female unemployment, now higher than at any point since 1987. Since last month’s figures, there are an extra 8,000 women unemployed and 27,000 more women out of work for more than a year. In total, there are now more than a million women (1,136,000) unemployed, the highest since 1987 and a rise of 100,000 over the last year. Of those, over a quarter (29 per cent) of women (327,795) have been unemployed for more than a year.

Long term unemployment continues to rise, reaching its highest level since 1996. Overall, long term unemployment rose 26,000, the highest level since 1996, to a total of 882,821. While 1,000 men have left long-term unemployment, there are now 27,000 more women who have been out of work for more than a year. IPPR predicts there will be almost a million unemployed for more than a year by the end of 2012. There is a real risk that these people will struggle to take advantage of any upturn in the economy.

While youth unemployment has fallen by 9,000, there are still more than a million (1,033,440) young people (aged 16-24) unemployed, the second highest since comparable records began in 1992. Of those, 263,000 young people (aged 16-24) have been unemployed for more than a year. The Youth Contract has now begun, but it has a huge job to do.

Almost half a million (430,672) people over 50 are now unemployed, up 42,000 in the last year. More than 40 per cent of unemployed over fifties have been out of work for more than a year, up 13,000 over the last year to 189, 593. It’s going to be very tough indeed for over 50s out of work for more than a year to fund new jobs, even when the economy bounces back.

There has also been a rise in part-time work, which rose by 80,000 while the level of full-time employment fell by 27,000. There are now 1.4 million people working part-time because they say they cannot get longer hours.

Public sector employment contracted by 270,000 last year, while private sector employment increased by just 226,000. The resulting gap means rising unemployment. The economy is not being rebalanced by public sector job cuts because growth in the private sector continues to lag. There are actually 19,000 fewer vacancies in the economy than there were a year ago. Looking ahead, there is going to be a rise of 100,000 in unemployment this year, according to IPPR analysis of the latest forecast from the Office for Budgetary Responsibility.

This is already hitting the north of England hard. Over the last year, unemployment is up 22 per cent in the North West (an extra 57,000 out of work) and up 11 per cent in the North East (an extra 14,000 out of work). The chancellor is wasting the opportunity to boost national prosperity by ignoring the economic potential of the north.

The priority for the government must be to prevent long term unemployment, with a job guarantee, and to support women to get back to work, by prioritising childcare. There is light at the end of the tunnel, but that tunnel stretches well into 2013. Before it gets substantially better, it’s going to get worse.

Boarded up shops wait for redevelopment in the Hanley Shopping Centre in Stoke-On-Trent. Credit: Getty

Richard Darlington is Head of News at IPPR. Follow him on Twitter @RDarlo.

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Jeremy Corbyn's speech on terrorism will do him more good than harm

The Labour leader's criticism of police cuts and western foreign policy will resonate with voters.

The election campaign, if there was any doubt, has resumed. In his speech responding to the Manchester attack, Jeremy Corbyn did not limit himself to expressions of sympathy and solidarity. He squarely targeted Theresa May on her home turf: policing and security.

The Conservatives' repeated warning is that Corbyn is a "threat" to his country. But the Labour leader countered that only he could keep it "safe". Austerity, he declared, "has to stop at the A&E ward and at the police station door. We cannot be protected and cared for on the cheap." May, having been warned by the Police Federation while home secretary of the danger of cuts, is undoubtedly vulnerable on this front. Under Labour, Corbyn vowed, "there will be more police on the streets" (despite Diane Abbott's erroneous arithmetic), while the security services would receive whatever resources they need.

Corbyn swiftly progressed to foreign policy, the great passion of his political life. Though it is facile to reduce terrorism to a "blowback" against western interventionism (as if jihadists were Pavlovian dogs, rather than moral agents), it is blinkered to dismiss any connection. As Corbyn noted: "Many experts, including professionals in our intelligence and security services have pointed to the connections between wars our government has supported or fought in other countries, such as Libya, and terrorism here at home" (the Tory-led Foreign Affairs Select Committee is among those who agree).That the former Stop the War chair has long taken this view absolves him of the charge of crude political opportunism.

Corbyn was also more careful than his pre-briefed remarks suggested to caveat his criticisms. He emphasised: "Those causes certainly cannot be reduced to foreign policy decisions alone. Over the past fifteen years or so, a sub-culture of often suicidal violence has developed amongst a tiny minority of, mainly young, men, falsely drawing authority from Islamic beliefs and often nurtured in a prison system in urgent need of resources and reform.

"And no rationale based on the actions of any government can remotely excuse, or even adequately explain, outrages like this week’s massacre."

But he maintained his central charge: western intervention has made the world more dangerous, not less. "We must be brave enough to admit the war on terror is simply not working," he said. "We need a smarter way to reduce the threat from countries that nurture terrorists and generate terrorism."

Though Corbyn's arguments have appalled Conservatives (and some in Labour), they are ones that will likely find favour among the public. Polls have consistently shown that most voters oppose western adventurism and believe it has endangered the UK. Corbyn's words will resonate among both the anti-interventionist left and the isolationist right (this is, after all, a country which has just voted to retreat from even its closest neighbours).

The speech, given at 1 Great George Street (in the room where Ed Miliband gave his resignation address), was marred by Corbyn's refusal to take questions. But it was unarguably well-delivered. "Let’s have our arguments without impugning anyone’s patriotism and without diluting the unity with which we stand against terror," he warned in a pre-emptive strike against the Conservatives.

Corbyn's decision to give an overtly political speech four days after the Manchester attack is being widely described as a "gamble" or even a profound error. But the election will now rightly focus more closely on the issue of security - nothing should be beyond democratic debate.

Many of Corbyn's life-long stances, such as unilateral disarmament, do not find favour with the electorate. But there was little in his speech today that the average voter would contest. The Conservatives will hope to turn the heightened security debate to their advantage, ruthlessly quoting Corbyn against himself. But on this front, as on others, the Labour leader is proving a tougher opponent than they anticipated.

George Eaton is political editor of the New Statesman.

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