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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Labour’s best general election bet is Keir Starmer

The shadow secretary for Brexit has the heart of a Remainer - but head of a pragmatic politician in Brexit Britain. 

In a different election, the shadow Brexit secretary Keir Starmer might have been written off as too quiet a man. Instead - as he set out his plans to scrap the Brexit white paper and offer EU citizens reassurance on “Day One” in the grand hall of the Institute of Civil Engineers - the audience burst into spontaneous applause. 

For voters now torn between their loyalty to Labour and Remain, Starmer is a reassuring figure. Although he says he respects the Brexit vote, the former director of public prosecutions is instinctively in favour of collaborating with Europe. He even wedges phrases like “regulatory alignment” into his speeches. When a journalist asked about the practicality of giving EU citizens right to remain before UK citizens abroad have received similar promises, he retorted: “The way you just described it is to use people as bargaining chips… We would not do that.”

He is also clear about the need for Parliament to vote on a Brexit deal in the autumn of 2018, for a transitional agreement to replace the cliff edge, and for membership of the single market and customs union to be back on the table. When pressed on the option of a second referendum, he said: “The whole point of trying to involve Parliament in the process is that when we get to the final vote, Parliament has had its say.” His main argument against a second referendum idea is that it doesn’t compare like with like, if a transitional deal is already in place. For Remainers, that doesn't sound like a blanket veto of #EUref2. 

Could Leave voters in the provinces warm to the London MP for Holborn and St Pancras? The answer seems to be no – The Daily Express, voice of the blue passport brigade, branded his speech “a plot”. But Starmer is at least respectful of the Brexit vote, as it stands. His speech was introduced by Jenny Chapman, MP for Darlington, who berated Westminster for their attitude to Leave voters, and declared: “I would not be standing here if the Labour Party were in anyway attempting to block Brexit.” Yes, Labour supporters who voted Leave may prefer a Brexiteer like Kate Hoey to Starmer,  but he's in the shadow Cabinet and she's on a boat with Nigel Farage. 

Then there’s the fact Starmer has done his homework. His argument is coherent. His speech was peppered with references to “businesses I spoke to”. He has travelled around the country. He accepts that Brexit means changing freedom of movement rules. Unlike Clive Lewis, often talked about as another leadership contender, he did not resign but voted for the Article 50 Bill. He is one of the rare shadow cabinet members before June 2016 who rejoined the front bench. This also matters as far as Labour members are concerned – a March poll found they disapproved of the way Labour has handled Brexit, but remain loyal to Jeremy Corbyn. 

Finally, for those voters who, like Brenda, reacted to news of a general election by complaining "Not ANOTHER one", Starmer has some of the same appeal as Theresa May - he seems competent and grown-up. While EU regulation may be intensely fascinating to Brexiteers and Brussels correspondents, I suspect that by 2019 most of the British public's overwhelming reaction to Brexit will be boredom. Starmer's willingness to step up to the job matters. 

Starmer may not have the grassroots touch of the Labour leader, nor the charisma of backbench dissidents like Chuka Umunna, but the party should make him the de facto face of the campaign.  In the hysterics of a Brexit election, a quiet man may be just what Labour needs.

What did Keir Starmer say? The key points of his speech

  • An immediate guarantee that all EU nationals currently living in the UK will see no change in their legal status as a result of Brexit, while seeking reciprocal measures for UK citizens in the EU. 
  • Replacing the Tories’ Great Repeal Bill with an EU Rights and Protections Bill which fully protects consumer, worker and environmental rights.
  • A replacement White Paper with a strong emphasis on retaining the benefits of the single market and the customs union. 
  • The devolution of any new powers that are transferred back from Brussels should go straight to the relevant devolved body, whether regional government in England or the devolved administrations in Scotland, Wales and Northern Ireland.
  • Parliament should be fully involved in the Brexit deal, and MPs should be able to vote on the deal in autumn 2018.
  • A commitment to seek to negotiate strong transitional arrangements when leaving the EU and to ensure there is no cliff-edge for the UK economy. 
  • An acceptance that freedom of movement will end with leaving the EU, but a commitment to prioritise jobs and economy in the negotiations.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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