Local solutions are the key to full employment

Labour is learning from countries where local services are trusted to match job seekers with vacancies.

In the pages of this week’s New Statesman the ever excellent Ian Mulheirn takes a look at this government’s employment policy. Needless to say it’s not a roaring success.

For proof, you need look no further than Wednesday’s unemployment figures. For the second month in a row, the number of people actually in work fell; that means our economy has quite simply stopped created jobs and is starting to lose them. Unemployment rose. Long term unemployment rose – and we now live in a country where one in five people out of work has been on the dole for more than two years. Yet in spite of the obvious need Ministers continue to resist Labour’s calls for a Compulsory Jobs Guarantee to end the prospect of a life on the dole.

Instead Iain Duncan Smith presses on with a Work Programme that doesn’t work, leaving more and more people getting further and further away from the labour market. And what’s more he has failed the very test he set himself his during fleeting reinvention as a compassionate conservative.

Back in Easterhouse the future Secretary of State for Work and Pensions told the world that, “A nation that leaves its vulnerable behind, diminishes its own future.” But after three years of power he isn’t bringing unemployment down on Britain’s poorest communities, he’s watching it rise.

Today, three quarters of the British estates most blighted by unemployed have seen worklessness rise since May 2010, and in two thirds long term unemployment has continued to spiral out of control.

Yet for all the promises they made in Opposition, this government has done nothing to re-skill the unemployed for the jobs that do exist. And the truth is skills are more important than ever – in today’s global market place, low skilled British workers are competing with workers paid twelve times less. The result is more than half of those without a skill are out of work, and the number is rising.

More and more of our low-skilled or no-skilled workers now live in Britain’s poorest communities. In fact, some of Britain’s poorest communities are home to five times more unskilled workers than Britain’s richest communities, and the truth is Ministers are allowing them to fall further and further behind.

The answer to the problem of poor places - as I argued in my speech to IPPR North last night – can be found in countries that are localising back to work services so workers can be better connected with local jobs, saving the state a fortune in benefit payments along the way. In times as tough as these we certainly shouldn’t be afraid to borrow the best ideas from our friends and neighbours.

In Germany, their more localised approach has contributed to saving billions of euros in welfare payments by driving up the employment rate. Local jobcentres work closely with surrounding schools and have deep roots in the local labour market which allows them to engage with employers far beyond the traditional low skill, low pay sectors.

Whilst in Canada, localised delivery of back to work programmes give local government the flexibility to establish their own priorities and to develop programmes to achieve them. Provinces and territories control how the funding is allocated in order to meet the needs of their particular labour markets, which in turn gives them the opportunity to apply local expertise to skills development, allocating targeted wage subsidies, and creating Job Creation Partnerships, to help provide useful work experience that leads to sustained employment

But it’s not just on foreign shores that decision makers are changing things on the ground with a more localised approach. Here in the UK, Labour authorities are already leading the way. Places like Glasgow, Wales, Newham and Liverpool are seeing Labour leaders innovate in a way that DWP officials in Whitehall cannot, by using local expertise to tackle unemployment head on. That’s how we start on the path back to full employment – and that’s how we rebuild Britain.

For Labour, that goal of full employment has always been the foundation for getting our country back on its feet. It was for Atlee’s Labour. It was for New Labour. It will be once more for One Nation Labour. Today the goal of full employment is important for a very simple reason. The faster we return to full employment, the faster we can pay down our debt. And the faster we can put the “something for something” back in to social security.

The Tories’ problem isn’t just that they are failing, but that they lost a belief in full employment many years ago, and never rediscovered it. That means more money spent on unemployment, so there is less to go around for working people and less for care.

After three years of failure we’ve got to find new ways to break out of this viscous circle. Seventy years ago, we set out a new path to full employment. Just as the Beveridge Report is a still a good roadmap for today, so too is the 1944 White Paper on Full Employment. It teaches us to be radical reformers to bring down the costs of social security; building exports; supporting public investment; fanning consumer demand – and taking determined action on jobs. It is a long road, but tackling poor places would be a big first step to getting our country back to full employment.

Next year we celebrate the 70th anniversary of the white paper on full employment. We should mark that anniversary not with empty words but with big plans. Plans to rebuild the path to full employment for new times. Plans which could help us modernise our social security system, rebuild trust, and crucially put its finances back on an even keel for the future.

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.

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Does the UK care enough about climate change to admit it is part of the problem?

The government’s energy policies make can make it hard to decipher its commitment to emissions reduction.

“People tell me it’s ridiculous to be flying for a climate change project but you have to get real with it, I mean I can’t cycle across the Southern ocean,” says Daniel Price, an environmental scientist from London. As founder of Pole-to-Paris, Price is about to complete a 17,000km bike ride from the Antarctic to the Arc de Triomphe.

Price came up with the idea in an effort to raise public awareness of COP21, the UN Climate Change Conference taking place in Paris next week. During the trip he’s faced a succession of set-backs: from the discovery that boats were prohibitively expensive, to diplomatic tensions scuppering his Russian visa plans. Yet the darkest moments were when he became overwhelmed by the magnitude of his own mission. “There were difficult times when I just thought, ‘What is the point of this’?” he says. “Cycling round the world is nowhere near enough to engage people.” 

As world leaders descend on Paris, many questions remain unanswered. Not least how much support developing nations will receive in tackling the effects of climate change. New research commissioned by Oxfam claims that such costs could rise to £1.7tn a year by 2050. But with cuts kicking in at home, the need to deliver “climate justice” abroad feels like a bigger ask than ever.

So does Britain really care enough about climate change to accept its full part in this burden? The government’s energy policies make can make it hard to decipher its commitment to emissions reduction. In September, however, it did pledge £5.8bn from the foreign aid fund to helping poorer nations combat climate change (twice that promised by China and the United States). And there’s evidence to suggest that we, as a public, may also care more than we think.

In America attitudes are much darker; in the dismissive words of Donald Trump “It’s called the weather”. Not least since, as a recent study proves, over the last twenty years corporations have systematically spread scepticism about the science. “The contrarian efforts have been so effective," says the author Justin Farrell, a Yale sociologist, "that they have made it difficult for ordinary Americans to even know who to trust.” 

And what about in China, the earth's biggest polluter? Single-party rule and the resulting lack of public discussion would seem to be favouring action on the environment. The government has recently promised to reach "peak" emissions by 2030, to quadruple solar installations, and to commit $3.1bn to help low-income countries adapt to the changing world. Christiana Figueres, the UN’s chief climate official, has even lauded the country for taking “undisputed leadership” on climate change mitigation.

Yet this surge of policy could mask the most troubling reality of all: that, when it comes to climate change, the Chinese are the least concerned citizenship in the world. Only 18 per cent of Chinese see the issue as a very serious problem, down 23 percentage points from five years ago, and 36 points behind the global median.

A new study by political economist Dr Alex Lo has concluded that the country’s reduced political debate could be to blame for the lack of concern. “In China popular environmentalism is biased towards immediate environmental threats”, such as desertification and pollution, Lo writes, “giving little impetus to a morally driven climate change movement”.

For the international community, all is well and good as long as the Chinese government continues along its current trajectory. But without an engaged public to hold it to account there’s always a chance its promises may fade into thin air.

So perhaps the UK’s tendency to moan about how hard it is to care about the (seemingly) remote impacts of climate change isn’t all bad. At least we know it is something worth moaning about. And perhaps we care more than we let on to each other.

Statistics published this summer by the Department of Energy and Climate Change reveal that three quarters of the British public support subsidies for renewable energy, despite only 10 per cent thinking that the figure is that high. “Even if the public think the consensus is not there, there are encouraging signs that it is,” says Liz Callegari, Head of Campaigns at WWF. “Concern for climate change is growing.”

As Price puts it, “You can think of climate change as this kind of marathon effort that we have to address and in Paris we just have to get people walking across the start line together”. Maybe then we will all be ready to run.

India Bourke is the New Statesman's editorial assistant.