"Jobs must be our number one focus"

Barack Obama's words ring true in the UK, too, as 2,250 fresh job losses are announced.

Employment -- or, more accurately, the lack of it -- was at the forefront of the international news agenda today when Barack Obama focused on joblessness in his first State of the Union address. As he said:

People are out of work. They are hurting. They need our help. And I want a jobs bill on my desk without delay. Jobs must be our number one focus in 2010.

The words ring true on this side of the Atlantic, too. Perhaps less widely reported than the Obama speech were two bleak pieces of news for British workers.

Shop Direct, a home shopping group, said that it is to close three call centres in Sunderland, Burnley and Newtown in Powys, at a cost of 1,500 jobs. Toyota also announced that it will axe up to 750 jobs from its main UK factory, the Burnaston plant near Derby. These are large-scale losses in communities where jobs were already in scarce supply.

And the picture for those communities particularly hard hit by the recession looks set to darken further. A recent report by the Institute for Public Policy Research explains:

It appears that those areas where there has been the largest increase in unemployment have above-average reliance on employment in manufacturing, in particular in those low value-added manufacturing industries that are most vulnerable to competition from low-cost companies in emerging economies elsewhere in the world. Unemployment was already high in these areas because companies were closing and cutting costs as a result of this competition. The recession has accelerated the process.

Other analysis shows that housing-led regeneration efforts in northern city-regions have been adversely affected by the recession and that some city-regions are likely to be badly hit when the government starts to cut public spending. For deprived communities in the northern city-regions, this could, therefore, represent a "triple whammy".

Figures earlier this week showed that the economy has returned to growth (just), and last week that unemployment did not rise as much as predicted (largely because more people are working part-time).

Amid these tentative signs of recovery, today's announcements were further evidence that the reverberations of the recession will continue to be felt for many months to come. Short-term help for these communities is vital, but even more important is long-term regeneration to fill the gaping hole left by the decline of UK manufacturing.

Both of the main political parties would do well to follow Obama's lead and place jobs at the centre of the agenda.

 

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Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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