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Is IDS nervous about getting unemployed Britain back to work?

The government would prefer to blame unemployment on immigration than on their economic policies.

It is hard to see what Iain Duncan Smith will gain from his call today for employers to hire indigenous British workers over migrants. The short-term politics of it are fairly straightforward: the government would rather people blamed unemployment on immigration, which for the time being can still be portrayed as a Labour legacy, than on their own economic policies.

But commercial enterprises aren't generally minded to set their recruitment drives to spare ministers' blushes. It is their job, so they say, to hire the best people and it is government's task to run an education and training system that turns out credible candidates.

David Frost of the British Cambers of Commerce put it pretty bluntly on the Today programme this morning:

[Employers] expect young people to come forward to them who are able to read, write, communicate and have a strong work ethic, and too often that's not the case ... And there's a stream of highly able eastern European migrants who are able to take those jobs, and that's why they're taking them on.

IDS's point is essentially that the government -- through the Work Programme, which got up and running this month -- will change all of that, and businesses should take note. No doubt they will, if the Work Programme does what it is supposed to. The idea is that private sector firms will prepare unemployed people for work and get money from the DWP budget if they manage it. It is arguably the most ambitious "payment by results" system for welfare-to-work policies anywhere in the world.

But the point that IDS seems to be ignoring is that the system is explicitly designed to function as a market. Government shouldn't have to intervene to direct employers' hiring policy. The Work Programme providers only get paid if they place people in work. So if the policy is a success, there will be no need for businesses to start actively favouring indigenous Brits -- they'll have them on the books already. And if they don't, then something will have gone badly wrong with the Work Programme model. The rate at which under-educated and under-skilled British workers get back into the labour market is clearly a test of IDS's policy. He can't start blaming businesses in advance in case it doesn't work.

Of course, success in that respect depends most of all on the rate of job creation in the economy as a whole. The Office for Budget Responsibility (using models from the Treasury) forecasts the appearance of 1.3m new jobs by 2015, which are presumed to come from increased private sector investment. That assumption follows from the broader expectation that GDP growth will bounce back to just under 3 per cent over the same period.

Most economists I speak to think those forecasts are pretty optimistic. And some of the unsuccessful bidders for Work Programme contracts (and some successful ones) have told me they think the whole thing will falter because there simply won't be enough jobs out there -- and they suggest a number of providers have been naïve or lazy in their estimates of how much it actually costs to rehabilitate someone after a long period of unemployment. So the ingenious market mechanism could malfunction. Result: the DWP in dispute with private sector contractors who aren't delivering the goods, and stubborn joblessness.

It looks as if IDS is getting nervous about his ability to get unemployed Britain back to work. If he fails, it won't be the fault of immigrants or business.

25 comments

peejay's picture

Many countries practice protectivism - where native born people are favoured for jobs over foreign born applicants. We used to do it in Britain - it used to be the normal 'patriotic' thing to do! Patriotic - that's a word we don't hear very much these days.

Indu Pendent's picture

The advantage of protectionism is that it traps income and skills investment costs within the native economy which enhances growth.

So long as business faces an austere harshly competitive environment where wages can fall to the world market rate, labor protectionism works. Unfortunately in theis country the wrong kinds of employment protectionism have taken a grip and have ruined the economy.

Indu Pendent's picture

@matthew fox
Ever though of finding a left wing party like the Libdems to support that has core values and does not exist just to chase votes for the benefit of a small elite?

SR819's picture

Why not stop all immigration altogether until we achieve full employment and all domestic workers are found decent work? Isn't this what the so called Labour party used to strive for? However, now you mention such policy you're called a bigot in our PC dominated world.

JamesB1's picture

Governments don't care about the future any more. As long as they can be seen to sort out the present, that's enough for them. Anything else is collateral damage and somebody else's problem.

After all, they probably won't be around (or at least in power) when these problems really do become critical.

Black Guardian's picture

It isn't going to work and it's dawning on him.

Bonus: his acts of cruelty against the sick and disabled are going to stack up the JSA figures big-time. Of course, he won't die in poverty. They might.

matthew fox's picture

@ Indu Pendent

Do you mean " I have ever thought "

Thinking has never been your strong point has it?

Indu Pendent's picture

In France the French may be French. In America, the Americans may be American. In Holland its OK for the Dutch to be Dutch.

But in Labour is it still biggoted for the British to be British?

Robert Taggart's picture

IDS... nervous ?... hope so !
Look, it be like this...
Some of us scroungers have been 'playing the system' for so long - it has become our 'employment' !
Some of us will happily settle for less (materially) so long as the giros keep coming !

frenetic's picture

The technocratic way this article is written with its lack of compassion is an insult to the millions of Uk citizens who now face an ever more brutal welfare regime while competing for joblets with motivated migrants who in many cases accept or are forced to tolerate much lower wages/standards of h/s, etc.

In fact, imo, , I’m on the left, but I think the left position on all this is untenable: basically leaving the hundreds of thousands of young British people(of all colours remember) to swing: they will now face competing with confident fit and motivated migrants(the best from around the world) and who will accept much lower H/S standards, housing conditions, etc for low/minimum wage jobs/joblets or face benefit sanctions/no benefits.

It’s a damn race to the bottom, and no Leftie should be defending this situation especially with knee jerk cries of racism, no wonder the left gets nowhere. Globalisation is making the U.K one big labour transit camp with all the consequences for all its citizens and the Left offers just platititudes and in a bizarre turn makes moral somersaults and defends what is basically neo-liberalism..

SR819's picture

IDS is absolutely right to focus on immigration, which has denied young British workers the chance to get their foot on the employment ladder. Businesses are talking rubbish by claiming British workers aren't good enough. The reality is that businesses choose foreigners over idigenous workers because foreign workers undercut the wages of local workers, and are willing to live in cramped, single bedroom accommodation along with 10 other migrant workers. How can a domestic worker cope with that? Their living costs are much higher, and therefore they can't afford to work for the wage that immigrants can work for.

Globalisation is going to destroy this country. We've already seen industry destroyed by free trade, large scale immigration has damaged community spirit and societal bonds, and now British workers are being consigned to the scrapheap because the previous government embraced migrant labour as a way of damaging the conditions of the white working class.

We have some extremely talented, skilled young British workers, who are being sold down a river because of Politically correct government policies that pander to immigrants.

The only solution is for the UK to implement import controls so that our markets aren't flooded with cheap imports from China, destroying our industry. Immigration from developing countries must be stopped, because it's workers from the third world that undercut wages and deprive British workers of jobs. Only the most highly skilled workers from developed countries should be allowed into the country, because they won't work for below the market rate, and also there's likely to be a shortage of workers in that industry (e.g. it should be okay to bring in Canadian neuroscientists or American physicists if the need arises)
A return to common sense economics will return this country to a stable footing economically. It's time someone put British people first, not pander to interest groups for votes.

matthew fox's picture

Sounds like " British Jobs for British Workers "

I can remember the unchartiable response to that statement, from the Conservative Party.

Martin L's picture

what a load of rubbish.

Companies will hire the best person for the job. My friend has degree from Poland and a masters from an English uni. She is not being exploited for 'slave wages' and has a good civil service job. She has earned it. Likewise, there are many people working in my local fields for minimum wage .i I have met people who are skilled ie engineers in their own country.

People say British people are too proud to take lower jobs - thats not pride - thats selfish, arrogant, contemptible behaviour. Pride is working in a factory and bringing home a low wage rather than starve. Pride is improving things for yourself and your family, not expecting others to help you or blaming everyone else for your predicament.

As for 'cheap imports' - would you rather pay more for your products ? Would you hell as like!!

The point is that do people really want us to go back to manufacturing? The truth is that people are too lazy to improve themselves.

The civil service is sponsoring me through university - the opportunities are out there - even in these times.

I'm fed up with the loons that blame everyone else.

If you are stuck in a town where theres 20 jobseekers for evey job, I've got an idea (radical) - either be the best candidate, improve yourself or move.

I finished planting my orchard this morning - britain is a beautiful place- so move from your inner cities and enjoy heaven on earth- but be assured unless you have rich parents, or win the lotto - accept THAT YOU WILL HAVE TO WORK HARD FOR IT!!!!!

SR819's picture

@ Martin L, British politicians are elected by the British people, and they should be expected to represent British people. So yes, I believe that instead of going abroad and looking for foreigners, businesses should be looking at indigenous workers, and should be prepared to offer training if these workers don't have all the requisite skills.

This nonsense about British people being lazy needs to be debunked. Many towns and cities in this country used to be the industrial powerhouses of the world. Birmingham was called the workshop of the world, and then there were places like Manchester, Stoke on Trent, Dagenham, etc which have seen manufacuturing jobs offshored to Asia, and to compound matters, the few jobs that remain are taken by immigrant workers willing to undercut wages. How is this fair?

The reason why there is such youth unemployment is not because of a lack of skills, but because our flexible labour market has allowed floods of immigrants to come into the country, and reduce wages. It's basic economics: Increase the labour supply, and price (wages in this case) will decrease. For whatever reason Labour (the party of the working class apparently) seemed happy with this situation.

Yes, we need to improve the skills of the young people in this country, but that alone is not enough. We must say no to globalisation, no to immigration and no to free trade. Then we can maybe become a world superpower again, and restore some pride in Britain.

If immigration (and migrant labour) is not controlled, a far right party with more organisational skill than the BNP will make major inroads in white, working class contituencies like Birmingham, Stoke on Trent and Dagenham. The BNP, despite their ineptitude and Fascist policies, had excellent results in the three areas mentioned, because the people there have been abandoned by Labour, who have chosen to chase the votes of immigrants and left these people to fend for themselves, which is a shocking dereliction of duty.

Luddite's picture

Half of all new jobs this year alone have been taken by foreigners HALF our young unemployed don't even get a look- in. The employers say British kids don't have the skills and don't want to work, that's fucking crap!! foreign workers simple work for less take more shit and are easy to hire and fire... This issue is tiring the Labour movement apart. Milliband must cut the left-wing crap, and start looking after our own.

SR819's picture

What a surprise that we don't hear a word about this grave injustice done to our youth from the trade unions. Where's Bob Crow now? He would be completely justified if he complained about foreign workers being employed on the Olympics site in East London (his hometown) and on London Underground, but do you hear him complain? Of course not, because he (like all other trade union leaders) believe in globalisation and are staunchly pro mass immigration. It's like the turkeys voting for christmas.

maganajarice's picture

You can't have it both ways either immigrants are lazy and only here to scrounge benefits or they are stealing jobs from British people, it cant be both, it has to be one or the other @frenetic and @SR819 immigrants are not taking jobs away from British people, they do the work that British workers cannot or will not take, and which has to be done. I work with a care company and most of the staff are foreigners, who have no recourse to any benefits or public funds, they all have to be in constant employment to survive. The few British people working there are constantly moaning about the job, pay and everything else under the sun. When there are opportunities for training and development they bicker about it being in the evening or on weekends. The worst time is on Friday nights and over the weekends, where there is a sudden raft of sickness and weird and wonderful stories just to avoid work. I work with a young man of 25 who refuses to work on Wednesday and Friday's because he has to play world of war-craft online, he is constantly complaining about being broke, but will not work on those two days.

You have to also remember that British people also take people jobs in other countries - especially the most lucrative jobs - when the Libya crisis happened there were reports of British workers earning as much as £7000 -15,000 per month, that is at the expense of local people.

IDS knows that this new work programme will fail and is rushing to everybody's default position in this country - blame it on the immigrants - leaving people to once again shy from taking responsibility for their lives. The govt has finally killed any chance of economic growth and is looking for someone to blame, when things go wrong. More investment is needed in education and training, lower taxes and job creation, creative, constructive leadership, not playing the ever popular game of blame it on the immigrants. Immigrants contribute enormously to this country and add to its rich tapestry and history, elected ministers should not be advocating what amounts to discrimination in employment.

Anton Jury's picture

All this and the pathetic specimen of the humen race (evil Ian Duncan Smith) is kicking the sick and diabled out of their wheelchairs making us believe that they are capable of imaginary work when nobody wants to employ them.

Every stage of Duncans welfare reforms is going to end up like all the other Tory policies that are half baked and unworkable, A Diabolical Mess!

The difference with all these pathetic, unworkable, unfair welfare reforms is that everyone enjoys watching and kicking the vulnerable that do not have a voice and everyone is going to happily push through these reforms because the Government has its hands on the purse strings which makes it an easy target.

I wish someone would wipe that pathetic smile of Duncan Smiths face and soon because I believe that he is enjoying inflicting misery upon the vulnerable and poorest in society.

matthew fox's picture

Luddite seems to be contradicting himself again.

One minute working folk won't vote for him, the next Miliband should look after his own.

hugh markey's picture

Some are surprised that those Eastern Europeans whose countries have entered the European Union should seek to split from nations which have successfully shaken off the chains of Soviet control.
With consummate ease, Lech Walesa took to Western ways: Poland's best dressed man and a pop star son to boot. Why not whole populations?
Before both World Wars Eastern Europeans emigrated to Western Europe and the USA.
Having all that entrepreneurial spirit quashed out of them by the Soviet Union and their own home grown communists, the opportunity to express their aspirations abroad is too good to be true.
After all, Iain, Margaret Thatcher went down a bundle on the other side of the Iron Curtain. Iron Lady - geddit?
Why wait a hundred years for Eastern Europe to catch up with the West. British employer certainly know which side their bread is buttered on and will continue to engage the most willing and the most skilled. Stop nannying!
GottinHimmel, Iain! What vas the Cold War all about? There was an English Pope - yes?

Slavonic Suite

Eddy S's picture

There's thousands of eastern European workers who find work here, the question we have to ask ourselves is how these people find work here, they may work hard they may have entrepreneurial spirit but they come from so far away, do our kids have less get up and go? Under labour many thousands have come to this country to find work succesful work opportunities.

Voice Of Moral Outrage's picture

Unfortunately @MartinL and @hughmarkey are completely correct. I happen to know a factory owner in the Midlands who would love nothing more than to employ indigenous British people. He offers a good wage - certainly way above the minimum. The work is physical and hard. He bemoans the fact that the young white working class Brits won't last 2 weeks in the job because it involves hard physical labour, and he has to employ people from Poland and Romania the whole time because they last for years im the positions. He would prefer young Brits, because sometimes the Poles and Romanians can't work after having the crap beaten out of them by the local unemployed British born. It also means he gets a reputation for employing Eastern Europeans which also makes the local hostile to his company, and makes it harder to employ people. He's always looking for new workers. However even the indigenous Brits who take the jobs there are lazy, often off sick and never last. I don't like lazy generalisations, but this is one example which unfortunately lends itself to them.

I don't believe there are easy answers, however and I also don't like to see wages reduced because of globalisation, my line of work in IT means if I was contracting I couldn't compete with the wages quotes offered by young, able and intelligent Indian or Russian programmers. But rather than go out and moan about it, I have to change my modus operandi. I am sick of tired of this sentimental self-mythlogising by the white working class as an excuse for racism and indolence and self pity. Yes there are times, they won't get work because other people will work for wages lower than some are prepared to accept, but that isn't the case all the time. If they really can't get work at all, then become councillors, politicians and start making a change that way instead. There is a huge gap in the market for intelligent, articulate and honest politicians in case anyone hadn't noticed, and plenty of things that need changing.

If IDS is correct how come the businesses have immediately retaliated by saying they don't want to have to pass over the best skilled people? I thought Britain wanted to compete on a world stage, in sports, in business, in the arts, instead of telling everybody about how good things were when there was an empire.

mary8's picture

IDS's scheme is a carcrash waiting to turn into a major motorway pile-up. The companies involved in the scheme, are not using their own funds but money borrowed from the Welfare budget. What happens when they are unsuccessful; don't get the unemployed into work; and do not get their government payments? They can simply default on the loans and leave the taxpayer to foot the bill.

David Lindsay's picture

Iain Duncan Smith united his party over Europe, made it the largest party in local government, and took it to parity and beyond in the opinion polls. The 2005 Election threatened to turn into a proper contest, and that not only between colours of rosettes, but between ideas.

So, in a lesson to Ed Miliband, a putsch was staged, with almost all Conservative MPs as much spectators as the rest of us while the thing was played out on the rolling news channels. Remind me, how well did the Conservative Party then do in 2005?

But IDS did not go away. He did sterling work on poverty, and in the run-up to the last Election he gave at least one interview saying that he did not care which party implemented his preferred policies in government, just so long as they were implemented. And now, he is in a position to implement them.

From that platform, he has today repudiated the capitalist system, which corrodes to nought everything that conservatives exist in order to conserve. There cannot be an unrestricted European or global movement of goods, services and capital without an unrestricted European or global movement of labour, i.e., of people; or vice versa.

Now, will IDS recognise that the most obvious solution is also the best? There would be none of this trouble if workers were still required, as a condition of employment, to produce their union cards.

Paul Mingus's picture

IDS is right about something for the first time in his life. Businesses argue they're hiring the best for job, and that Brits can't read or write. This is grossly untrue, there are millions of smart young unemployed British graduates looked over for cheaper foreign labour.

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