How unemployment is different this time around

The last time I was unemployed was 1998. Now, the reality is that there are not enough jobs.

Unemployment is up. As a jobseeker, this comes as no surprise. But what has surprised me about being unemployed this time around is how different things have become, and how much harder it is to find work.

I was last unemployed when I graduated from university, in 1998. To find work, I simply popped into an employment agency, showed I could use a computer and type things, and was offered a series of placements, despite having hardly any work experience. It was pretty straightforward, and I managed to hack a living quite merrily until the fateful day I started working as a journalist. What was the big deal about unemployment? It seemed to be a simple task to find a job, and earn a half-decent living.

This time around, I thought it would be that simple again, so before I was made redundant I popped into a few employment agencies, CV in hand. With much more experience and a wider range of skills than I had back in 1998, I thought it would be even easier this time to glide into temping, or some kind of work. I was wrong.

I knew things had changed when I couldn't even see a human being. "Send in your CV by email," said the weary receptionist at the first place I tried.

"But I've got it here, in my hand, here it is."

"No, it needs to be on email."

So I stood there, in reception, and emailed it using my phone, to someone who was sitting three feet away.

"We'll get back to you," they said. They didn't. And they weren't the only ones who didn't. I must have applied to every employment agency around here, and applied for every job that I think I could reasonably do. Nothing. I've filled in dozens of application forms, repeating the same information again and again, and sent my CV off enough times to kill a few trees, if they'd been printed out. It's been like having a job, but without the money. But still, nothing. It's got to the stage where I regard the terse "Dear Candidate" rejection email as a kind of near miss.

I thought it was something to do with the stigma of being a journalist, as if working in a poorly respected industry meant people perceived you as hacking phones and upsetting grieving relatives all day. But it wasn't that. This is the reality for a lot of people out of work at the moment; there just aren't the jobs to go around. As well as that, for those lucky enough to be on the books of an agency, they're being paid almost the same rate for work as they were paying me all those years ago, when I had a full head of hair. It's as if all the time in between never happened, but I look in the mirror and I realise it has.

So, it's the Jobcentre every two weeks to collect the 60-odd quid I get for having paid national insurance for the past 13 years. They call it Jobcentre Plus nowadays -- I think the "plus" is "plus a sense of grinding ennui and despair". The people inside are helpful and kind, and do their best for me, I know, but I have grown to feel sick about my fortnightly visits to sign on. That building is Svidrigailov, taunting me, teasing me, forcing me to confess... confess to a sense of hopelessness. You can't hide it when it's staring you in the face. Those who have been doing this for some time tell me I'll face pretend applications, literacy and numeracy tests, training courses to show I know how to use a computer, all to ensure I'm really trying my best to get a job. The humiliation will be complete, although I don't feel sorry for myself. I'm just disappointed that I can't do any better.

All that said, I think I'm extremely lucky. It could be so much worse. I'm fortunate enough to be able to scrape a couple of hours' work here and there, and my partner works hard to pay the mortgage (you don't get housing benefit if you've got a mortgage) and the bills while I dick around at home, doing nothing except writing and applying for jobs that I won't ever get. There will come a time, quite soon, when I will do something -- anything -- rather than this.

But I am lucky to have that choice. I hear stories from others about how much worse it is if you're disabled, or claiming long-term sickness, and are facing the barrage of suspicion and contempt from those who think you're faking it, or putting it on. Compared to which, me being on Job Seekers Allowance is really a small, and hopefully temporary, inconvenience. But it's an inconvenience that a few more people are having to go through than before. And it's an inconvenience that seems a lot harder than it used to be.


Patrolling the murkier waters of the mainstream media
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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/