There are loads of jobs - but only for those who already have one

Why the rise in vacancies won't help the unemployed.

There was a 21-month high in job vacancies in January - caused by a "reduction in candidate availability", according to Tom Hadley, REC director of policy who spoke to the Telegraph today. "Good news for workers", he concluded.

It is good news for workers - but only for workers. The currently unemployed (who are, for the most part, untrained) are unlikely to benefit from the growth in demand. Workers, on the other hand, will be fought over. Hadley's most telling word, here, is "candidate": it's not that there aren't enough people to fill the jobs - it's just that there aren't enough with the right skills.

The gap between the unskilled unemployed and the skilled employed is starting to become unbridgeable. Despite growing youth unemployment, the Economist reported last December that more than a third of employers worldwide had trouble filling jobs. This is likely to get worse, too. At one end the number of unemployed will continue to expand - unhired and unskilled, and at the other employers will be fighting over the most desirable employees, causing wage inflation in some places.

Last year I wrote about this finding from Mckinsey, which seems to show extra education is a good idea right now, in terms of your future employment prospects. Here's a handy visual guide:

Now is certainly the time to skill up. But they have to be the right kind of skills. There seems to be a disconnect between educators and employers - the sectors crying out for workers (IT, engineering), match the university courses with the empty lecture halls.

How do you address this? Well, one idea is to pour money into apprentice schemes and funded places at technical colleges - which the government is, to some extent, doing. (For example, there's the Employer Ownership Pilot, a 250m funded training scheme for employers).

It's possibly worth mentioning that South Korea are a little ahead of the game here - they have created a series of new "meister" schools - well funded technical colleges that aim to address the country's machine operator and plumber shortage. (The word "meister" is, apparently, an attempt to add kudos to an otherwise lower status education path.)

But what to do while the skills catch up with the potential work force? One option would be to make it easier for employers to recruit talent from abroad - although it's a long and bureaucratic process to get talented workers in from other countries, and the immigration cap isn't helping either. But right now we have shrinking options: perhaps it's time to call for reinforcements.

 
Vacancies abound. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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How can London’s mothers escape the poverty trap?

Despite its booming jobs market, London’s poverty rate is high. What can be done about it?

Why are mothers in London less likely to work than their counterparts across the country, and how can we ensure that having more parents in jobs brings the capital’s high child poverty rates down?

The answers to these two questions, examined in a new CPAG report on parental employment in the capital, may become increasingly nationally significant as policymakers look to ensure jobs growth doesn’t stall and that a job becomes a more much reliable route out of poverty than it is currently – 64 per cent of poor children live in working families.

The choice any parent makes when balancing work and family life is deeply personal.  It’s a choice driven by a wide range of factors but principally by what parents, with their unique viewpoint, regard as best for their families. The man in Whitehall doesn’t know best.

But the personal is also political. Every one of these personal choices is shaped, limited or encouraged by an external context.   Are there suitable jobs out there? Is there childcare available that is affordable and will work for their child(ren)? And what will be the financial gains from working?

In London, 40 per cent of mothers in couples are not working. In the rest of the country, the figure is much lower – 27 per cent. While employment rates amongst lone parents in London have significantly increased in recent years, the proportion of mothers in couples out of work remains stuck at about 12 percentage points higher than the rest of the UK.

The benefits system has played a part in increasing London’s lone parent employment rate. More and more lone parents are expected to seek work. In 2008, there was no obligation on single parents to start looking for work until their youngest child turned 16. Now they need to start looking when their youngest is five (the Welfare Reform and Work Bill would reduce this down to three). But the more stringent “conditionality” regime, while significant, doesn’t wholly explain the higher employment rate. For example, we know more lone parents with much younger children have also moved into jobs.  It also raises the question of what sacrifices families have had to make to meet the new conditionality.  

Mothers in couples in London, who are not mandated to work, have not entered work to the same level as lone parents. So, what is it about the context in London that makes it less likely for mothers in couples to work? Here are four reasons highlighted in our report for policymakers to consider:

1. The higher cost of working in London is likely to play a significant role in this. London parents are much less likely to be able to call on informal (cheaper or free) childcare from family and friends than other parts in the country: only one in nine children in London receives informal childcare compared to an average of one in three for England. And London childcare costs for under 5s dwarf those in the rest of the country, so for many parents support available through tax credits is inadequate.

2. Add to this high housing and transport costs, and parents are left facing a toxic combination of high costs that can mean they see less financial rewards from their work than parents in other parts of the country.

3. Effective employment support can enable parents to enter work, particularly those who might have taken a break from employment while raising children. But whilst workless lone parents and workless couples are be able to access statutory employment support, if you have a working partner, but don’t work yourself, or if you are working on a low wage and want to progress, there is no statutory support available.

4. The nature of the jobs market in London may also be locking mums out. The number of part time jobs in the capital is increasing, but these jobs don’t attract the same London premium as full time work.  That may be partly why London mums who work are more likely to work full time than working mums in other parts of the country. But this leaves London families facing even higher childcare costs.

Parental employment is a thorny issue. Parenting is a 24-hour job in itself which must be balanced with any additional employment and parents’ individual choices should be at the forefront of this debate. Policy must focus on creating the context that enables parents to make positive choices about employment. That means being able to access the right support to help with looking for work, creating a jobs market that works for families, and childcare options that support child development and enable parents to see financial gains from working.

When it comes to helping parents move into jobs they can raise a family on, getting it right for London, may also go a long way to getting it right for the rest of the country.