The jobs crisis is worsening

The pace of public sector job cuts means that unemployment is certain to rise this week.

Jobs, jobs, jobs, is the refrain that will echo through Westminster this week. The latest figures are out on Wednesday and unemployment, which currently stands at 2.57m (8.1 per cent), the highest level since 1994, is expected to rise again, while youth unemployment, which currently stands at 991,000, is expected to top a million. The danger of a lost generation is increasing every month.

To add to the gloom, the Chartered Institute of Personnel and Development (CIPD) has warned that the labour market faces a "slow, painful, contraction" with firms delaying recruitment of more staff. Its quarterly poll of 1,000 private, public and voluntary organisations showed that employers in all three sectors intend to add fewer jobs in the coming months. CIPD public policy adviser Gerwyn Davies noted: "recruitment intentions are falling, which will make further rises in unemployment therefore seem inevitable given that public sector job losses are outpacing the predictions made by the Office for Budget Responsibility ... There is no immediate sign of UK labour market conditions improving in the short or medium term." Indeed, in the last quarter, the public sector shed 111,000 jobs, while the private sector created just 41,000.

Interviewed on the Today programme this morning, Mark Hoban, the Financial Secretary to the Treasury, sounded alarmingly complacent. As is now traditional, he began by emphasising the damage the eurozone crisis has done to the British economy ("The crisis in the eurozone casts a long shadow over our economy") ignoring the fact that the growth was falling and unemployment rising long before the current imbroglio. Asked how the government would stimulate growth, he could only point to long-term measures such as "better road networks, better energy infrastructure." Ministers have not adopted one of the pro-growth policies proposed earlier this month in the New Statesman by nine of the world's leading economists.

In times of economic crisis, the state has a duty to act as the employer of last resort but the CPID predicts that 610,000 public-sector jobs will be lost by 2016, 210,000 more than forecast by the Office for Budget Responsibility. For this reason, the CIPD, hardly a hotbed of radicalism, has called for the government to halt its public sector job cuts until the private sector has recovered. But that's a message to which George Osborne, besotted with austerity, remains tone deaf.

George Eaton is political editor of the New Statesman.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.