The emperor's new stats release

All is not as it seems in last week's employment figures.

George Eaton mentioned it over at the Staggers, but the "record high employment" in the last set of jobs figures isn't quite as good as it appears. Most of the increase was due to either population growth, or the astonishing rise in the number of people on "government supported training and employment programmes". The Morning Star's Rory MacKinnon dug deeper into that latter rise:

The remainder are, as mentioned earlier, the aforementioned poor sods on unpaid placements, unpaid workers in family businesses and the self-employed. In fact, Mr Hoban’s claim of a drop of 50,000 Jobseekers’ Allowance claimants in the last quarter – the figure from which the unemployment rate is calculated – coincides with a combined rise in these three categories of… 50,000. Even the surge of 35,000 new self-employed entrepreneurs is hardly a sign of a booming economy – it’s due in no small part to the government’s drive to move Job Seekers Allowance claimants onto their New Enterprise Allowance for start-up businesses. Keeping a business afloat for long is a difficult feat for anyone in the current economy, let alone people with no nest egg who’ve now been told to take out business loans. We’ll see how well that particular policy works out once the scheme’s lenders start calling in their final repayments in 2015.

MacKinnon also has a nice point on the problem of using the total employment, rather than percentage in employment, as the headline figure. Click through and give it a read.

In the rush to publish on the headline figures, various statistical confusions can get rather lost in the mix. We have seen that with the "boost" in private sector employment seen from the recategorisation of further education college - which, while well publicised at the time, is now rather ignored when people talk about "one million new private sector jobs since the election" - and we are seeing the same thing again with the employment programmes.

No matter where you stand on the effectiveness or morality of such programmes, it is clear that they are not employment. An increase in the number of people taking part may (or may not) be cheering, but it is not the same as getting people back into work.

Protesters from the Boycott Workfare campaign outside an M&S on Sunday.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.