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The new unemployment figures are grim. Long term unemployment has doubled over the past year. The biggest rise in unemployment for two years - since before the end of the recession. A very worrying surge in youth unemployment, by 78,000. And the largest number of women out of work for 23 years.
The real problem is the absence of growth in the economy. The economy has virtually flat-lined and private sector confidence is poor. The Government told us that its reductions in public sector employment would enable it to cut the deficit, and that private sector firms would step forward to create new jobs to make up the loss. It simply isn't happening.
Almost three times as many jobs are being lost as being created. President Obama announced last week a plan for jobs. Our Government needs to recognise the seriousness of what is happening in Britain too.
We have suggested that Alistair Darling's successful tax on bankers' bonuses should be repeated for a second year, and that the proceeds should be applied to creating new jobs for young people.
Long term youth unemployment creates heavy long term costs for the economy, and can seriously constrain the potential of the young people who endure it. The Government mustn't let the problems carry on escalating as they are doing. One idea I want to look at is whether it would be feasible to introduce a job guarantee for jobseekers. That approach was very effective in limiting the rise in youth unemployment before the election, but the current Government scrapped it.
The Government's Work Programme was launched in June. It's taking time to get going. This seems to be one of the current problems - the predecessor programmes were all scrapped earlier this year.
Thousands who would have been helped by them may well have lost out on the chance of work as a result. The Social Market Foundation published an analysis last month which concluded that the Government's numbers for the Work Programme don't add up. If they are right, the Programme will need to be bailed out with additional funding - which some providers have maintained all along would be necessary.
The cost of childcare is a growing problem. It was highlighted in a presentation yesterday in the House of Commons by the Daycare Trust and Save the Children, entitled "Making Work Pay - the childcare trap". Government has reduced the level of support available, but - as unemployment among women rises sharply - it may well be a false economy.
The current system of childcare tax credits is being abolished by the Government, in the Welfare Reform Bill which has been through the House of Commons and received its second reading in the House of Lords yesterday. But the Government still hasn't decided what the replacement for childcare tax credits will be.
The purpose of the Welfare Reform Bill is supposed to be to ensure that people will always be better off in work than out of work.
However, given what we know already of the Government's thinking, it looks as if many needing childcare support in order to work may well find themselves worse off in work, once the costs of childcare are taken into account.
The case for a change of course in Government economic policy gets stronger by the week.
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Without stopping migration, any jobs plan will just trickle (or tinkle) down.
EU open borders is a good theory, but no other country extends benefits to everyone as generously as UK, down to the student loans (which aren't repaid.) FR and DE requires paying in first. Everyone else deports for crimes: Why doesn't the UK?
Money. Massive migration creates two trends due to increasing competition; upward pressure on prices of housing, petrol, and basics due to competition; and downward pressure on wages. Moreover, migrants will accept less for the same job.
Lower wages + higher prices = better profits. Simples!
Migration also increases the movement of wealth from lower classes into the highest income levels. The UK working man sees tax increases while 'job creators' get tax cuts which they'll spend overseas. The rich make sure the politicians have £000s of reasons to listen to the 'right people.'
These pressures puts the working family in a vice. The strongest direct stimulus to the UK economy is from wages earned and spent there. When you hire migrants or give them benefits, they send a massive percentage back to their home countries. The 'economic stimulus' is stimulating other economies; and the UK citizens are scr*wed again.
Those new jobs not surprisingly are going to migrants:
Voila! The gigantic gaping hole in your jobs scheme: Migrants get jobs and benefits, send money out of the economy. The UK working class pays the bills while 'job creators' get tax breaks.
STOP MIGRATION. PUT UK CITIZENS BACK TO WORK.
'' The case for a change of course in Government economic policy gets stronger by the week.''
That is true. But Government is under no pressure to chnage when Ed Balls goes on about lowering VAT which would help in short-term only. We need to increase taxes upon the wealthy. The Lib Dems are right about increasing property taxes on upscale dwellings. Let's hear Labour voice support for substantial increases.
The Shadow Chancellor does not challenge the government with alternatives. We need radicalism - not sops for middle-class voters to induce them to return to a safe and comfy Labour (we won't bite).
You are aware the country is falling apart? What is more important to you?
Protecting the wealthy or the social fabric of the nation?
Inflation is killing of peoples ability to spend which is wiping out many businesses.
The VAT decrease could buy a little time to bring in other changes.
At the least it would help slow the plunge.
Alas what we will get is cuts on tax to the rich, cuts or out right abolition of benefits to the poor and middle class while tax on them increases and more riots and strikes, which the Government will blame on feral kids, unions etc and not on their own society destroying policies
Protecting the wealthy or the social fabric of the nation?" ~ that was rhetorical, right?
'' The current system of childcare tax credits is being abolished by the Government, in the Welfare Reform Bill which has been through the House of Commons and received its second reading in the House of Lords yesterday. But the Government still hasn't decided what the replacement for childcare tax credits will be. ''
If government is abolishing one thing to replace it with another how can abolition take place before the replacement is devised?
Incase you hadnt noticed this is SOP with them.
Come up with an idea or reform press ahead and then realise you havent actually though it out to its conclusion and now your in a huge mess cause a lot of others have and realised its wrong (Forest sell off, NHS bill etc etc)