The lesson Cameron needs to learn from Birgitte Nyborg

Our Scandinavian friends have much to teach us.

David Cameron has been in Stockholm this week, expressing his love for all things Nordic from economic openness, to free schools, and the Danish TV series The Killing.

Based on his pronouncements today he's doubtless also been attracted to Borgen, the political drama in which a female prime minister juggles coalition politics and the demands of a young family at the same time as driving through her commitment to equality in the corporate boardroom.

It's a welcome sign as we have a lot to learn from our Scandinavian friends -- and not just about increasing the number of female directors. We could also learn a lot when it comes to supporting the vast majority of working mothers.

As a new report from the Resolution Foundation today shows, motherhood in modern Britain still carries a heavy price in the workplace. More than nine out of ten of those surveyed, switched from full-time to part-time work since having children. Of course, for many women this is a positive choice with mothers wanting the flexibility to work fewer hours, especially when their children are young.

But here's the rub: it also shows that even when making a positive choice, working part-time still carries a very heavy cost. An incredible 44 per cent of women reported that they'd had to take a lower-skilled job when switching to part-time work.

 

By working part-time, do you feel you've had to take a lower skilled job than you would have if you worked full-time?

Working part-time

 

And while these trade-offs affect people in all income groups, those on low to middle incomes are far more likely to face constrained choices and tougher penalties. Compared to more affluent women, those on low to middle incomes are almost twice as likely to feel that they have no choice but to work part-time, and when they do they are 33 per cent more likely to be forced to take a lower skilled job.

Millions feel constrained, having to choose between a more fulfilling and well paid career and family life. As one respondent put it: "I guess just have to accept that career progression is impossible now because I chose to work part-time, employers won't admit it but this is the reality for part-time working mums."

And we're not just constraining parents' choices, we're also harming our economy. Overall the UK ranks 15th in the OECD in terms of levels of female employment. If we caught up with the highest performing countries, up to one million more women would be in the workplace.

The chart below shows the gap between our female employment rate and better performing countries for women of different ages. The story is clear -- it's at the peak years of childbirth that we really fall behind, with mothers having to drop out of the workforce.

 

Female employment gap between UK and better performing countries

Female employment

Given that the UK has the second most expensive childcare in the OECD this is hardly a surprise - nor is the fact that almost half of working mothers say that the lack of affordable and quality childcare is a key barrier preventing them from increasing their working hours.

Here's hoping that there is a sequel to Borgen in which Birgitte decides to highlight the plight of ordinary working mothers and the role that universal childcare plays in enabling them to work: and that someone makes David Cameron watch the box-set.

 

Gavin Kelly is a former adviser to Downing Street and the Treasury. He tweets @GavinJKelly1.

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Theresa May wants a Global Britain? Then stay in the single market

The entrepreneur Lord Bilimoria argues the Prime Minister risks both the prosperity and reputation of the UK. 

Since coming to the UK as a student in the early 1980s, I have witnessed the shattering of its glass ceiling and the birth of one of the world’s most enterprising nations. Much of this progress is now under threat due to the great uncertainty Brexit is causing.

It has been six months since the referendum, and we are still presented with no clear strategy except a blind leap of faith out of the single market. By continuing to pursue a closed and inward-looking Brexit, Theresa May risks both the prosperity and reputation of this country. 

Last week I joined with thirty other entrepreneurs and business leaders in urging the Prime Minister to keep Britain within the EU single market. In the coming months Mrs May will face having to make a trade-off between immigration control and loss of single market access. The decision she makes will determine whether we retain much of our economic strength. 

That is why I was disappointed to see May’s most recent comments simply reinforcing the message that the government is pursuing a "hard" Brexit. Over the weekend her big interview sent the pound plunging – yet again. 

It is clear the government is solely focused on delivering stricter immigration regulation, regardless of whether it leaves Britain stranded outside the single market. To fall into the trap of calling the PM "Theresa Maybe" masks the decisive nature of her emerging strategy – which is to head for the hardest of exits.

We know that neither Council President Donald Tusk nor chief negotiator Michel Barnier will accept access to the single market without freedom of movement being part of the deal. This is incompatible with the vision set out by the government.

Yet, movement and access to the single market are vital to the future interests of British business. The PM must do more to reassure those set to be affected. We are currently part of a 500m-strong single market; this is good for British business. Although I believe the whole of Europe needs to reform the current free movement of people, not least for security reasons, we nevertheless must continue to have the ability to move freely within the EU for tourism, business and work.

It is becoming unequivocally clear that the PM is willing to pay any economic price to achieve stricter immigration controls for political gain. Driven by the fear that the far-right will use immigration in future election battlegrounds, the issue of immigration is undermining our ability to negotiate an exit from the EU that is in the best interest of businesses and the nation as a whole. 

The government’s infuriating failure to prioritise continued movement of people means we are set to lose a hugely competitive edge, reducing access to talented employees, and undermining the UK’s rich history of an open, diverse, and welcoming nation.  

To achieve the government’s absurd immigration control, we will have to leave the European single market. In doing so 44 per cent of our exports, the current percentage that go to Europe, will be jeopardised, as they will no longer have free access to their original markets. 

In tandem with an exit from the world’s largest single market, British business will also lose access to one of the strongest international talent pools. This has the potential to be even more devastating than the forfeiture of markets and trade.

Access to skilled workers is critical to future success. As a nation we have the lowest level of unemployment in living memory with less than 5 per cent currently out of work, and that’s in spite of 3.6m people from the EU working in Britain.

Britain will continue to need the expertise that free movement currently provides, regardless of whether Brexit happens or not. You cannot simply replace the skilled doctors, nurses or teachers living and working here overnight. 

The focus on immigration has also strayed into more dangerous territory with the government persisting in including international students as immigrants when calculating net migration figures, whilst having a target to reduce net migration to the tens of thousands. The PM’s insistence on this policy not only stifles encouragement of talent flows, but also sends an incredibly negative message to the international community. It is a policy that I have continually called on the PM to change and I will continue to do so.

Our competitor countries, the United States, Canada, and Australia, do not categorise international students as immigrants and, in fact, they also provide generous incentives to stay in their countries to work after graduating. In comparison, we removed our popular two year post-study work visa in 2012.

Brexit poses an increasingly dangerous reality that we are destined to be viewed as an inward-looking, insular and intolerant nation. That is not the Britain I know and love. That is not the Britain that has attracted enterprising individuals. The UK needs to establish itself once more as an outward-facing nation that welcomes international talent and entrepreneurship. This starts with retaining membership of the single market.  

Lord Karan Bilimoria is a leading British businessman and the founder of Cobra Beer.