UNEMPLOYMENT

 Unemployment was rarely discussed until the 80's as it was seen as a problem of the 30's, solved by post-war economic policies.

 

THE DEFINITION AND MEASUREMENT OF UNEMPLOYMENT

Became controversial in the 80's as the conservative government redefined it to keep the figures down. In 1982 the government counted claims for benefits rather than those seeking work.

Underestimating Unemployment

  • Main critics, left and feminists.
  • Married women are unlikely able to get benefits but likely to look for work.
  • Under 16 may not get benefit, but be forced onto schemes.
  • People older or sick were/are encouraged to claim other benefits.
  • 'Not seeking work', might get benefits stopped, but the government decides what this definition actually is. 
  • When jobs are scarce, marginal workers eg. learning challenge, may be seen as unemployable rather than unemployed.

 

Overestimating Unemployment

 

Press, some politicians and New Right claim much fraud, from black economy, and high levels of claims from the 'work shy'.

 

Evaluation

  • Pahl estimated that workers in the black economy were more likely to be employed as they had more work opportunities and were less likely to be under official surveillance.
  • It's low wages and deductions from benefits that create the poverty trap (unable to take work because of benefit loss, many benefits now pay top up money), rather then high benefits.


THE CAUSES OF UNEMPLOYMENT

  •  New technology, causes structural unemployment by replacing jobs, eg. computerization in banking,
    • or, technology creates jobs through new/cheaper products.
       International competition
  •  Changed in the occupational structure, resulting from changing markets and technology, led to service from manufacturing. Impact varies geographically and between different groups,
    •   or, education and training could solve this.
  •  Cyclical changes in demand for goods at home and abroad lead to unemployment fluctuations.
    •   Or, used to stimulate demand with public spending but this leads to inflation and further job loss.
  •  Changes in money supply, influences inflation, this competitiveness and thus unemployment.
    •   Or, control inflation and interest rates by cuts in taxation and public spending and keeping wage costs down.

 

THE SOCIAL EFFECTS OF UNEMPLOYMENT

 

  • The disadvantaged more likely to be unemployed. Age and gender. Ill health and family breakdown can result. More women in workforce.
  • Workers feel less secure and stay where they are. Unions are weaker, which gives employer control and keeps wages down.
  • Regional unemployment, whole communities can be effected, eg. coal towns, as local business suffer from reduced demand. Similar problems in inner-city areas.
  • Young and ethnic more likely to be unemployed, in specific locations, and may be linked to crime and political protest.
  • The welfare state, with higher unemployment, fewer workers may be supporting more claimants. Worse health costs the NHS more.

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