The coalition is wrong to be complacent about unemployment

The latest fall in unemployment becomes a rise if you take out the massive drop in London.

The DWP select committee has given its verdict on the government’s much-heralded Youth Contract. And it’s not good news. The scheme compares poorly to previous projects and is in danger of missing its targets. You might not be surprised – after all there are still over a million young people out of work and long-term youth unemployment has more than trebled in the last year. You hardly need a report to tell you things aren’t going well.

So why is unemployment falling? What is going on behind the headlines? Well, closer study of the figures reveals that new employment minster Mark Hoban was perhaps a little rash to describe the state of the labour market as "very encouraging." What we are really seeing is that in great swathes of the country Britain’s jobs crisis is becoming deep set. For Britain’s women, there has been no let up – women account for 80% of the rise in long-term unemployment since the election. And our construction industry, a sector we need roaring back to life if we are to rebuild Britain, has seen nearly 120,000 jobs wiped out since the election. Whilst in eight out of twelve regions across the country , unemployment is higher than it was in May 2010.

In fact, the latest fall in unemployment becomes a rise if you take out the massive drop in London as it prepared to host the Olympic Games. Even for those in employment, the glass is emptier than you might think. Two-thirds of the increase in employment since the election is due to a rise in people becoming temporarily employed, or working part-time - now at record highs. And that rise is almost entirely down to people who would rather be in full-time work. They are being forced to take part-time jobs because no full-time jobs are available.

So how do these figures square with ministers’ claims that their flagship Work Programme is doing the job? Well the signs aren’t good – earlier this year DWP downgraded its projection for their flagship scheme by almost half. The sad truth is ministers refuse to tell us how they are getting on. The figures remain tethered behind a depressingly familiar wall of secrecy along with the truth about their Youth Contract and the blueprints for the increasingly beleaguered Universal Credit. David Cameron once told us that sunlight is the greatest disinfectant, but if something is rotting in DWP, it seems ministers aren’t ready for the cure.

The time for secrecy and excuses has long past. Britain desperately needs a change of course. We are now in the longest double-dip recession since the Second World War,  the government’s failing economic plan has pushed borrowing up by a quarter already this year and programmes to get people off benefits and into work seem to be stuck in neutral. The select committee’s report should act as a wake-up call. Thanks to research done by Acevo we know that today’s youth unemployment emergency is set to cost our country £28bn in the coming decade – that’s money we can’t afford to waste.

We now need decisive action – not more tinkering round the edges. Ministers should listen to the International Labour Organisation and urgently bring in a jobs guarantee, like Labour’s Real Jobs Guarantee. They should pay for it with a sensible tax on bankers' bonuses and create a fund that'll help us get 100,000 young people back to work.

Work and Pensions Secretary Iain Duncan Smith arrives for a Cabinet meeting at 10 Downing Street. Photograph: Getty Images.

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.

Photo: Getty
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Zac Goldsmith has bitten off more than he can chew

In standing as an independent, Goldsmith may face the worst of both worlds. 

After just 48 years, we can announce the very late arrival of the third runway at Heathrow. Assuming, that is, that it makes its way past the legal challenge from five local councils and Greenpeace, the consultation with local residents, and the financial worries of the big airlines. And that's not counting the political struggles...

While the Times leads with the logistical headaches - "Heathrow runway may be built over motorway" is their splash, the political hurdles dominate most of this morning’s papers

"Tory rebels let fly on Heathrow" says the i's frontpage, while the FT goes for "Prominent Tories lead challenge to May on Heathrow expansion". Although Justine Greening, a May loyalist to her fingertips, has limited herself to a critical blogpost, Boris Johnson has said the project is "undeliverable" and will lead to London becoming "a city of planes". 

But May’s real headache is Zac Goldsmith, who has quit, triggering a by-election in his seat of Richmond Park, in which he will stand as an anti-Heathrow candidate.  "Heathrow forces May into Brexit by-election" is the Telegraph's splash. 

CCHQ has decided to duck out of the contest entirely, leaving Goldsmith running as the Conservative candidate in all but name, against the Liberal Democrat Sarah Olney. 

What are Goldsmith's chances? To win the seat, the Liberal Democrats would need a 19.3 per cent swing from the Conservatives - and in Witney, they got exactly that.

They will also find it easier to squeeze the third-placed Labour vote than they did in Witney, where they started the race in fourth place. They will find that task all the easier if the calls for Labour to stand aside are heeded by the party leadership. In any case, that Clive Lewis, Lisa Nandy and Jonathan Reynolds have all declared that they should will be a boost for Olney even if she does face a Labour candidate.  

The Liberal Democrats are fond of leaflets warning that their rivals “cannot win here” and thanks to Witney they have one ready made.  

Goldsmith risks having the worst of all worlds. I'm waiting to hear whether or not the Conservatives will make their resources freely available to Goldsmith, but it is hard to see how, without taking an axe to data protection laws, he can make use of Conservative VoterID or information gathered in his doomed mayoral campaign. 

But in any case, the Liberal Democrats will still be able to paint him as the Brexit candidate and the preferred choice of the pro-Heathrow Prime Minister, as he is. I think Goldsmith will find he has bitten more than he can chew this time.

This article originally appeared in today's Morning Call, your essential email covering everything you need to know about British politics and today's news. You can subscribe for free here.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.