How zero-hours contracts hide real unemployment

If you're on contract without work, the ONS can count you as employed.

The CBI and Institute of Directors have both waded into the debate over zero-hour contracts, arguing that tenuous labour is a necessary tool in the fight against unemployment. The Financial Times' Elizabeth Rigby, Duncan Robinson and Andrea Felsted report:

John Cridland, director-general of the business lobby, said those complaining about such contracts needed a “reality check”…

“These contracts play a vital role as a way of keeping people in employment,” said the head of the employers’ body. “If we hadn’t had this flexible working when the economy contracted, unemployment would have topped 3m – and it didn’t it went to 2.5m.”

Cridland may or may not be correct (the actual numbers do not appear to be based on any research, but even numbers pulled out of thin air may be correct through chance), but somewhat misses the point.

People on zero-hours contracts may count as employed even while, for all functional purposes, they have no job. When the ONS is counting employment, anyone who has a currently active zero-hours contract counts as "employed", even if they haven't taken a single shift in the week of the survey. And given the anecdotal evidence that employers frequently stop giving employees work as a way of effectively firing them, many of those employees actually are unemployed, then just haven't been told yet (official statistics on the practice don't exist for obvious reasons). Dawn Foster details the sort of stories which are common:

One colleague was slightly late two weeks in a row, and when asked why replied she’d had trouble finding a parking space. She didn’t come in the following week. Looking at the month’s rota I saw her name but with no shifts allocated. Two months later I saw her near my house. “Have you got a new job?" I asked. She explained she hadn’t, and that while she’d not been sacked, she hadn’t been offered any shifts and there’d been no explanation.

The ONS explains how they measure zero-hour workers who may be in that trap:

People who are on zero hours contracts count as employed. If they worked at least an hour in the survey reference period they would be counted in the employment numbers as usual. If a survey respondent did not in fact work in the reference period, the first question asked is whether they are 'temporarily away from a job' (they could be sick or on leave, etc..). Those on a zero-hours contract should reply to say they have a job to return to. In this instance they would be in employment but listed as having worked no hours

In other words, there are people who are not currently receiving work from an employer, and who will never again receive work from that employer, but who still count as "employed" in national statistics because their employer sees no need to officially fire them. This has additional implications for their lives. Some zero-hour contracts include rules banning the employee from taking work for other employers at the same time, while those who end up "voluntarily" leaving work are unable to claim many out-of-work benefits.

The effect of this on employment statistics is hard to measure, particularly since it is widely believed that employment statistics already fail to capture the full effect of zero-hours employment. The latest figures from the ONS show just over 200,000 people on the contracts, but the FT reports that "research released this week by the Chartered Institute of Personnel and Development claimed there were about 1m zero-hours workers in the UK". Regardless of the total, however, one thing is clear: for some people, the difference between a zero-hour contract and unemployment is negligible.

McDonalds is one of the firms at the centre of the zero-hour contract row. 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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Who "speaks for England" - and for that matter, what is "England"?

The Hollywood producer Sam Gold­wyn once demanded, “Let’s have some new clichés.” The Daily Mail, however, is always happiest with the old ones.

The Hollywood producer Sam Gold­wyn once demanded, “Let’s have some new clichés.” The Daily Mail, however, is always happiest with the old ones. It trotted out Leo Amery’s House of Commons call from September 1939, “Speak for England”, for the headline on a deranged leader that filled a picture-free front page on David Cameron’s “deal” to keep Britain in the EU.

Demands that somebody or other speak for England have followed thick and fast ever since Amery addressed his call to Labour’s Arthur Greenwood when Neville Chamberlain was still dithering over war with Hitler. Tory MPs shouted, “Speak for England!” when Michael Foot, the then Labour leader, rose in the Commons in 1982 after Argentina’s invasion of the Falklands. The Mail columnist Andrew Alexander called on Clare Short to “speak for England” over the Iraq War in 2003. “Can [Ed] Miliband speak for England?” Anthony Barnett asked in this very magazine in 2013. (Judging by the 2015 election result, one would say not.) “I speak for England,” claimed John Redwood last year. “Labour must speak for England,” countered Frank Field soon afterwards.

The Mail’s invocation of Amery was misconceived for two reasons. First, Amery wanted us to wage war in Europe in support of Hitler’s victims in Poland and elsewhere and in alliance with France, not to isolate ourselves from the continent. Second, “speak for England” in recent years has been used in support of “English votes for English laws”, following proposals for further devolution to Scotland. As the Mail was among the most adamant in demanding that Scots keep their noses out of English affairs, it’s a bit rich of it now to state “of course, by ‘England’. . . we mean the whole of the United Kingdom”.

 

EU immemorial

The Mail is also wrong in arguing that “we are at a crossroads in our island history”. The suggestion that the choice is between “submitting to a statist, unelected bureaucracy in Brussels” and reclaiming our ancient island liberties is pure nonsense. In the long run, withdrawing from the EU will make little difference. Levels of immigration will be determined, as they always have been, mainly by employers’ demands for labour and the difficulties of policing the borders of a country that has become a leading international transport hub. The terms on which we continue to trade with EU members will be determined largely by unelected bureaucrats in Brussels after discussions with unelected bureaucrats in London.

The British are bored by the EU and the interminable Westminster arguments. If voters support Brexit, it will probably be because they then expect to hear no more on the subject. They will be sadly mistaken. The withdrawal negotiations will take years, with the Farages and Duncan Smiths still foaming at the mouth, Cameron still claiming phoney victories and Angela Merkel, François Hollande and the dreaded Jean-Claude Juncker playing a bigger part in our lives than ever.

 

An empty cabinet

Meanwhile, one wonders what has become of Jeremy Corbyn or, indeed, the rest of the shadow cabinet. The Mail’s “speak for England” leader excoriated him for not mentioning “the Number One subject of the hour” at PM’s Questions but instead asking about a shortage of therapeutic radiographers in the NHS. In fact, the NHS’s problems – almost wholly caused by Tory “reforms” and spending cuts – would concern more people than does our future in the EU. But radiographers are hardly headline news, and Corbyn and his team seem unable to get anything into the nation’s “any other business”, never mind to the top of its agenda.

Public services deteriorate by the day, George Osborne’s fiscal plans look increasingly awry, and attempts to wring tax receipts out of big corporations appear hopelessly inadequate. Yet since Christmas I have hardly seen a shadow minister featured in the papers or spotted one on TV, except to say something about Trident, another subject that most voters don’t care about.

 

Incurable prose

According to the Guardian’s admirable but (let’s be honest) rather tedious series celeb­rating the NHS, a US health-care firm has advised investors that “privatisation of the UK marketplace . . . should create organic and de novo opportunities”. I have no idea what this means, though it sounds ominous. But I am quite certain I don’t want my local hospital or GP practice run by people who write prose like that.

 

Fashionable Foxes

My home-town football team, Leicester City, are normally so unfashionable that they’re not even fashionable in Leicester, where the smart set mostly watch the rugby union team Leicester Tigers. Even when they installed themselves near the top of the Premier League before Christmas, newspapers scarcely noticed them.

Now, with the Foxes five points clear at the top and 7-4 favourites for their first title, that mistake is corrected and the sports pages are running out of superlatives, a comparison with Barcelona being the most improbable. Even I, not a football enthusiast, have watched a few matches. If more football were played as Leicester play it – moving at speed towards their opponents’ goal rather than aimlessly weaving pretty patterns in midfield – I would watch the game more.

Nevertheless, I recall 1963, when Leicester headed the old First Division with five games to play. They picked up only one more point and finished fourth, nine points adrift of the league winners, Everton.

 

Gum unstuck

No, I don’t chew toothpaste to stop me smoking, as the last week’s column strangely suggested. I chew Nicorette gum, a reference written at some stage but somehow lost (probably by me) before it reached print.

Editor: The chief sub apologises for this mistake, which was hers

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle