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, and sits on the International Trade select committee. He is the 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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The NHS's sustainability is under threat if more isn't done to look after its staff

More work is needed to develop the health service's most precious resource.

As the NHS nears its 70th anniversary, the time is ripe for a workforce rescue plan. Staffing worries, even more than funding pressures, are the biggest cause of concern for NHS trust leaders. There are not enough trained health workers in the UK to meet today’s needs, let alone those of the future.

Demands on hospitals, mental health and community trusts, and ambulance services are growing. More patients need treatment. Increasingly, they require complex care, with specialist expertise. This is not just about numbers. We need a clinical workforce that is skilled and equipped to work in new ways to deal with the changing needs of the population it serves. 

That means improving the supply of people coming to work for the NHS, and doing more to develop and motivate them so they want to stay. These problems are not new but the scale of the challenge has reached a tipping point which threatens the future sustainability of the NHS.

Ministers rightly point out that the NHS in England has more clinical staff than ever before, but numbers have not kept pace with rising demand. The official "shortfall rate" for nurses and midwives across England is close to 10 per cent, and in some places significantly higher. Part of this is down to the recognition, after the events at troubled health trust Mid Staffordshire, of the importance of safe staffing levels. Yet for successive years during the coalition government, the number of nurse training recruits fell.

Far from being a problem just for hospitals, there are major nursing shortages in mental health and community trusts. Between 2009 and 2016 the number of district nurses employed by the NHS in England fell by more than 40 per cent. Just as the health service tries to accelerate plans for more treatment closer to home, in key parts of the workforce the necessary resources are shrinking.

There are also worrying gaps in the supply of doctors. Even as the NHS gears up for what may prove to be its toughest winter yet, we see worrying shortfalls in A&E consultants. The health service is rightly committed to putting mental health on an equal footing with physical health. But many trusts are struggling to fill psychiatry posts. And we do not have enough GPs.

A key part of the problem is retention. Since 2010/11 there has been a worrying rise in “leaver rates” among nurses, midwives, ambulance staff and scientific technical staff. Many blame the pressures of workload, low staffing levels and disillusionment with the quality of care. Seventy per cent of NHS staff stay on for extra hours. Well over a third say they have felt unwell in the past year because of work-related stress.

Add in cuts to real basic pay, year after year, and it is hardly surprising that some are looking to other opportunities and careers outside the public sector. We need a strategy to end pay restraint in the NHS.

There is also a worrying demographic challenge. Almost one in three qualified nurses, midwives and health visitors is aged 50 or older. One in five GPs is at least 55. We have to give them reasons to stay.

NHS trusts have made important strides in engaging with their workforce. Staff ratings on being able to report concerns, feeling trusted to do their jobs, and being able to suggest improvements are encouraging. But there are still cultural problems – for example around discrimination and bullying – which must be addressed locally and nationally.

The NHS can no longer be sure that overseas recruits will step in to fill workforce gaps. In the early 2000s many trusts looked beyond Europe to meet nursing shortages. More recently, as tougher immigration and language rules took hold, a growing proportion came from the EU – though not enough to plug the gap.

Now we have all the uncertainty surrounding Brexit. We need urgent clarity on the status of current EU nationals working in the health and care systems. And we must recognise that for the foreseeable future, NHS trusts will need support to recruit and retain staff from overseas. The government says it will improve the home-grown supply, but that will clearly take time.

These problems have developed in plain sight. But leadership on this has been muddled or trumped by worries over funding. Responsibility for NHS workforce strategy is disjointed. We need a co-ordinated, realistic, long-term strategy to ensure that frontline organisations have the right number of staff with the right skills in the right place to deliver high quality care.

We must act now. This year's long-delayed workforce plan – to be published soon by Health Education England – could be a good place to start. But what we need is a more fundamental approach – with a clear vision of how the NHS must develop its workforce to meet these challenges, and a commitment to make it happen. 

Saffron Cordery is the director of policy and strategy at NHS Providers