It's not a tautology: the clearest barrier to employment is unemployment

How no job leads to no job.

The essay from Tony Blair in our our Centenary issue ends with seven questions which he says the modern Labour party must answer. Our editor, Jason Cowley, gave a go at answering some, but one in particular bears highlighting. Blair asks:

How do we improve the skillset of those who are unemployed when the shortage of skills is the clearest barrier to employment?

But that question is actually based on a false premise . Shortage of skills is not the clearest barrier to employment – lack of employment is.

It sounds tautological, but persistent research shows that businesses are wary to hire people who are unemployed, instead preferring to poach employees from other companies. The effect also hits hard if you have a sizeable gap in your CV; young people are routinely advised to claim they took a "gap year" to cover up such periods of unemployment, but that only goes so far.

That's bad enough if you quit your job before immediately starting work, but it gets worse still if you've been out of work for a long period of time. New research by Rand Ghayad, reported by Matt O'Brien at the Atlantic, reveals just how much worse:

In a new working paper, he sent out 4800 fictitious resumes to 600 job openings, with 3600 of them for fake unemployed people. Among those 3600, he varied how long they'd been out of work, how often they'd switched jobs, and whether they had any industry experience. Everything else was kept constant. The mocked-up resumes were all male, all had randomly-selected (and racially ambiguous) names, and all had similar education backgrounds. The question was which of them would get callbacks…
As long as you've been out of work for less than six months, you can get called back even if you don't have experience. But after you've been out of work for six months, it doesn't matter what experience you have. Quite literally. There's only a 2.12 percentage point difference in callback rates for the long-term unemployed with or without industry experience. That's compared to a 7.13 and 8.95 percentage point difference for the short-and-medium-term unemployed. This is what screening out the long-term unemployed looks like. In other words, the first thing employers look at is how long you've been out of work, and that's the only thing they look at if it's been six months or longer.

If someone's been out of work for more than six months, upskilling isn't going to help them. They are relegated to the same pile as the unskilled applicants purely by virtue of their unemployment.

The terrible thing is, employers are probably acting rationally here. The attitude that "there must be something wrong with them" will sometimes be right – and if it isn't, well, there's always enough capable applications who aren't long-term unemployed to easily fill any positions.

There may not be any easy solutions, either. Just as upskilling doesn't do much, it's not clear that work experience would either. We don't know what employers are selecting for, but if it is the "there must be something wrong with them" attitude, then being given unpaid experience won't help.

But O'Brien suggests one possible policy:

It's time for the government to start hiring the long-term unemployed. Or, at the least, start giving employers tax incentives to hire the long-term unemployed. The worst possible outcome for all of us is if the long-term unemployed become unemployable. That would permanently reduce our productive capacity.

Whatever happens, people who have been unemployed for a long time need work now, and they need help getting it. It's not a personal failing, it's a social one.

A protestor holds a sign during a demonstration against unemployment benefit cuts on July 11, 2012 in Oakland, California. Photograph: Getty Images

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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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.