Showing posts with label Precarity. Show all posts
Showing posts with label Precarity. Show all posts

Monday, 28 January 2019

Employment isn't a simple matter - the numbers hide complex picture of poverty, precarity and the need for opportunity

The government's favourite fallback when criticised is to turn to the employment figures. Theresa May pulled the figures out at last week's PMQs, saying that she noticed the opposition leader hadn't raised the subject with her.

But the government's excitement about those figures is hard to square with the reality of life in this economy for ordinary workers.

The fact that the dominant corporate culture in Britain sees it as a viable strategy to lay off thousands of workers in 'restructuring', explains a lot about how most of the people in poverty in Britain can be in work - suffering in poverty despite having paying jobs.

Employment may be high, but big questions remain about the quality of employment. Retail may not be work that produces the greatest satisfaction, but it does provide opportunities for those who need them most - like a ladder to management experience and the stability that can provide.

The latest threat to that slender social mobility ladder is the restructuring happening at Tesco, where unions are afraid that as many of 15,000 jobs are going to be cut, some two dozen per store - more job losses at the firm, that follow on from some ten thousand others lost in the last four years.

Uncertainty and precarity are becoming the norm. Average wages remain below what they were in 2010. Income equality in Britain continues to decline. And amidst these pressures, the welfare safety net has been diminished. This is the pattern that lies hidden behind the employment figures.

Over time, of course employment won't stay the same. Some kinds of work will disappear and others will replace them. Perhaps, over time, work itself will change beyond recognition - to no longer be the 'work to live' system we are familiar with. But it will change.

It isn't good enough for Conservatives to preach innovation, to preach flexibility. That approach is leaving people with no stability and rising anxiety. Trapped in a precarious working life that isn't rewarding people. There has to be a better way.

Brexit looms, hovering menacingly over everything, threatening to diminish workers rights and job security, ordinary people need reassurances about the future. The old ladders to prosperity for working class people are being kicked down.

It's no good talking up the figures when thousands are facing layoffs. What people need is to be able to depend upon practical support when they lose work, and the same as they try to develop the skills to find a new path forward. To know that there are paths they can take, opportunities for a stable life.

That means more intervention and more guidance. More communication, to let people know where the paths are and what people will need on those roles. This is only the beginning of what is needed, but in a time of crisis you have to deal with the emergency first.

Monday, 2 July 2018

The disappearance of high street retail jobs hurts working class most, taking away crucial ladder to opportunities

In the year 2000, the European Union issued it's Lisbon Strategy.The plan, under then President of the European Commission Romano Prodi, was to prepare Europe for the 'knowledge economy', in which the continent was to be the skill and knowledge centre for the world.

The advance of technology on the high street is part of what that strategy was preparing for - to transition to a position where low skill work was done by machines, giving people more time, education and training needed  to prepare for more technical and high skilled work.

The problem across Europe, including here in Britain, is that the expansion of skills, education and the opportunities to exploit them - necessary to making this transition work for the working class - hasn't happened.

Low skill work is going away, but it's loss is only hindering the working class. In the past year alone in Britain, twenty two thousand high street retail jobs have been cut. Many more are planned. With them, crucially, goes job and income security for the working class.

And it's not just shop floor work. Management positions are being lost too. With them goes the ladder that working class people could, in the past, have climbed towards greater opportunities with more responsibility and higher pay - the entry level access point to a well paying career.

Now. The decline of any particular market sector is not, by itself, a disaster - so long as opportunities for people to make a living continue to appear to offset the losses of security of work & income, and that ladder to opportunity.

However, the stats do not look great. While unemployment is at a forty year low, working poverty is high. Child poverty is high. Precarious work is high. Security of income is under threat at a time when pay has not yet recovered from the long post-2008 slump.

Moving to a knowledge economy is the right direction. But only if it takes working class people with it. Abolishing entry level work to reduce corporate bottom lines at the expense of the poorest and most vulnerable is despicable.

Without a framework of education and training, and a responsive social security network - built around a reliable means of making a living and a flexible income guarantee for a volatile, and frequently 'gig' oriented, economy - the transition becomes a step backward, techology in the hands of business again reducing people rather than elevating them.

And elevation is the point. Liberation is the point. If technology is not going to free us, increasing our capacities and opportunities, then what is the point of it?

Monday, 22 January 2018

Wellbeing has been forgotten in the drive to improve employment statistics

Photograph: Job Centre Plus by Andrew Writer (License) (Cropped)
As we approach eight years of Conservative government, the impact of their time in government is becoming clearer. If we judge a society by the wellbeing of it's poorest members, the Conservatives have fallen short.

Despite low unemployment and a real terms rise in household incomes - about £600 a year between 2007/8 and 2015/16 - the poorest have not seen the benefit, caught beneath the weight of the rising cost of living and Conservative cuts to benefits and tax credits.

As we wrote in October, you can't count on increasing employment alone to improve people's wellbeing - especially if the work available is precarious, with insecure pay and hours.

Last week, Resolution Foundation released a report looking at how employment had changed over the last twenty years. It pointed out that there has been a shift among working people, on the lowest incomes, towards lower hours and part-time employment.

Resolution described this shift as, in part, unwelcome and involuntary - with a quarter of working class people wanting more hours. The squeeze on working hours is not being helped by the increasingly precarious, non-standard form of hours worked.

This situation is coinciding with the real terms increase in earnings being offset by several forces: the rising cost of housing, the rising cost of energy and the rise in households servicing growing debt.

With wage growth lagging behind consumer price rises, the cost of living is putting a great deal of pressure on the least well-off households. The Conservative drive to clamp down on welfare and drive people into work has not delivered greater wellbeing.

For seven and a half years, the Conservative approach has been steady as she goes. Even a change of Prime Minister and Chancellor has not led to a change of plan. The evidence shows that, for the wellbeing of the poorest, this needs to change.

First of all, there is a need to address the punitive impact of welfare reforms - that will see the incomes of the poorest fall 10% by 2021-22 compared to 2010. Work is not paying.

Consider: how does the government expect a household that struggles to stay afloat on a precarious income - juggling high rent and servicing debt - with no extra for savings, to meet it's needs when a job if lost and they're faced with a five week benefits application waiting period? Answer: More debt.

Second, the cost of living must be tackled. We need cheaper energy and cheaper rent. How this will be achieved in the long run - whether by community-owned services to breach the energy monopoly and an expansion of social housing and a living rent, or through increased market competition - in the short term they government action.

And third, bound to the first two, a concerted effort must be made to address the growth of household debt. Debts caused by living costs, mostly rent, are a damning indictment of the failure to make work pay - debts that only increase when help is needed most.

The least well off are being crushed and trapped under Tory policies, living with growing anxiety and precarity. Wellbeing is suffering to no discernible end. That is the tale of eight years of Conservative government.

Monday, 4 December 2017

The government social mobility commission resigns in protest at lack of progress on 75th anniversary of the Beveridge Report

Photograph: Steps to Success from Pixabay (License) (Cropped)
The government's Social Mobility Commission has chosen, whether by coincidence or for significance, the 75th anniversary of the Beveridge Report to stand down in protest against a failure to make the promised progress towards a 'fairer Britain'.

Chaired by Alan Milburn, a former Labour minister, the Social Mobility Commission was set up under David Cameron and Nick Clegg and the Coalition. It's remit was to monitor government progress in tackling child poverty and ensuring opportunity.

However, 75 years after William Beveridge published his report on the welfare of Britain, this is still an unequal country. Over time, government's Labour and Conservative have struggled to match Beveridge's aims.

Milburn and the commission felt that progress had come to a halt altogether. At the heart of the problem, for all of these governments over time, is that the problems, identified in the Beveridge report, have been moved around rather than solved.

Greater wealth, generated in the particular since the 1970s, has not been shared. Rather it has been concentrated on a narrow few. The appearance of greater affluence has come largely courtesy of greater debt - the roots of further crises to come.

Public health has been improved by the National Health Service, but that institution has become a teetering colossus in need of a fresh new commitment, even as a crisis of mental illness is only beginning to be understood.

A new commitment is also needed to education. Britain is still short of the level of literacy needed to match its social mediums - in this case, the need is for broad computer literacy in an age of escalating technological developments.

As Beveridge struggled to find a housing solution in his day, so it remains a source of massive exploitation today. Homes are expensive to buy, and expensive and insecure to rent. Homebuilding has come close to a grinding halt, particularly homes for social rent.

That is the first four of Beveridge's five 'Great Evils': Want, Disease, Ignorance and Squalor - for which precarity has become the word of the day. But what of Idleness?

Unemployment remains. The target for Beveridge was below 3%, but it remains over 4% despite the highest number of people in employment ever
- suggesting the underlying proportions are not changing. Welfare and debt traps are inescapable for the poorest as jobs pay too little and are too insecure, leaving even households with two people in employment struggling and working poverty a very real problem.

And today, the Joseph Rowntree Foundation released a report detailing an increase in the overall number of children (up 400,000) and pensioners (up 300,000) in poverty - just in the last four years.

Beveridge's word, Idleness, covers a more painful reality where social mobility is hard to attain - where the poor are poor because they began their lives poor; because every step on the path that work provides out of poverty offers only a precarious footing.

Milburn has announced an intention to set up a new and independent social mobility institute. An independent perspective is important and all parties must be held to account.

But many of these post-Beveridge Great Evils are problems we have already known about. The next step for progressives is to start investing in the solutions, rather than continuing to play partisan games and moving them about.

What ideas are out there? On housing, the Scottish Government have just brought into force a new law that improves security of tenure for renters, and basic income is being given a trial in a number of cities and countries around the world.

There are ideas out there. Progressives need to back them and start fighting precarity, that has become the by-word on all fronts.

Monday, 30 October 2017

While the government will want to clear up its messy year of Finance Bills with an orderly status quo Budget, it needs to be bolder and start investing

Next month is Chancellor Philip Hammond's first Autumn Budget. Yet the pomp for the event might be diminished by the fact that the previous finance bill will only just reach it's third reading this Tuesday.

The Chancellor's Spring Budget had been one for pluggling holes. There were Reliefs for those affected by business rate changes. A tax rise for the self-employed (on which he later u-turned). And there was spending - in the millions rather than billions - across key areas like health and social care, construction and education.

All of these came as the clearance of the debt and deficit, and restoration of growth - the long term promises of the Conservatives - remained a long way from being a achieved.

With the truncated Parliamentary session, the Finance Bill reappeared in the Summer once the new MPs took their seats. It has a been a messy and confusing year that will have left many in confusion as to what is and isn't in the Treasury's plans.

The first obstacle the government must navigate is the amendments to the Finance Bill. Labour and Cooperative backbencher Stella Creasy put forward a series of amendments that press the government to action on tax evasion and the exploitative gains made by those corporations who engaged in PFI, private-public investment schemes under Blair and Brown.

These are yet more subjects on which the Tories are divided. And Labour pressure, with Conservative backbench support has ensured that changes will need to be made to the Universal Credit rollout come the Autumn Budget. 

That will have to mean another government U-turn - a term that is coming to be the lasting testament to how ineffective Conservative government has been. They promised stability and only produce confusion.

To that end, the instincts of Hammond and the government will surely be for this messy year of Finance Bills to be tied off with a clean, efficient budget that gets everyone on the same page. To resist change. Status quo may well be the order of the day.

And yet, action is needed. Globalisation continues to reek havoc on communities, as outside of the rich bubbles were technology and advantage and money clusters, investment is dire.

As Mariana Mazzucato stresses, the big private players do not take risks and will not redress this balance themselves. The state needs to invest and create markets, to be the pioneer that the private sector simply isn't.

The 2017 budget has to tackle the lack of opportunities, the need for innovative new industry with the training to staff them, and the cost of living that suppresses and excludes so many. Government can only achieve these things if the public sector steps out in front and takes the lead.

Monday, 23 October 2017

The reality of austerity Britain: work and life are now poor, precarious and uncertain

People gather in Manchester to march against austerity past the Conservative Party Conference 2017.
The reality of the Tories' austerity Britain was exposed in the figures released last week. Those figures revealed that wage growth remains poor at 2.2%, barely above pre-crash levels and falling behind consumer prices rises, with inflation now at 2.9%.

But what do these figures tell us about the big picture of austerity Britain?

Consider Theresa May's response when confronted on issues like poor wages - unemployment is falling. Whenever the PM is confronted, she turns to the unemployment/employment figures. The trouble is, you can't just say that employment is in itself a fix.

Especially when it evidentially isn't the case. Britain might have it's highest recorded employment and lowest unemployment, but what do we know about the quality of life that is providing? What we know, is that working poverty is now very high.

There is no essential truth that employment fixes people's problems or empowers them. Work can only bring liberty under certain conditions.

And austerity Britain is a land of precarity, where social security has been replaced with - or perhaps, outsourced to - uncertain and scarce low paid work. All of which is now threatened by automation, and pits ordinary people against each other in long applicant lists.

This is only heightened by the flaming wreckage of the welfare system. People in need are left without support, and in mounting arrears, for a month and a half when claim out of work support - a situation the government are struggling to even convince there own party to support.

Inevitably, Brexit comes into this. It is important that the ideological case behind leaving the European Union was never made clear. But it's argument for 'freer trade' and less regulation, is a pitch to go further down the road on which we currently travel - to a place of permanently less surety or stability.

But why would those who have campaigned so hard for Brexit want this?

Pete North, Editor of LeaveHQ, blogged how - what he himself described as - the long, painful years of austerity still to come, will in fact be a price worth paying (by ordinary people whose lives would be left in tatters) to accomplish a kind of vague social change, that displayed for more ignorance about young people than any comprehensive thought on the subject.

The governments of David Cameron and Theresa May have pledged a more compassionate conservatism, that takes care of those most in need, while being responsible with the public finances. They have been failures on both fronts.

None of their measures have delivered on even one of these aims. The debt continues to climb. Meeting deficit targets is still delayed. All the pain of austerity and ordinary lives dropped in uncertainty, and the government has nothing to show for it - neither in the public finances or in producing a compassionate society.

Seven years of Conservative government has been a diastrous experiment. It's time to get off this road and find a new way forward.

Thursday, 17 November 2016

Progressives need to find an answer to precarious work, because conservatives back its rise and it in turn fuels the Far Right

The headline figures say unemployment is down, but they cover the fact that welfare is being replaced only with precarity. Photograph: Job Centre Plus by Andrew Writer (License) (Cropped)
In the breakdown of the Leave Campaign's victory in the Brexit referendum, and also that of Trump, the impact of globalisation has been afforded a central role. The shifting of work overseas, and only precarious opportunities at home, has fed fear and hostility.

Even a brief look at the political situation, as it stands in Europe and America, reveals that the main benefactors of the crisis have been anti-establishment populists and the Far Right nationalists and sectarians - from Grillo to Le Pen, from Spain to Eastern Europe.

With that in mind, the employment figures released by the government make interesting reading. The topline is, in a time of meagre of opportunities, likely to be praised: unemployment has fallen to a new low, as more people find a way into work.

But the headline covers up three important facts. First, that 15% of those in employment are self-employed (BBC, 2016). Second that, including the self-employed along with those on zero hours and in temporary jobs, some 20% depend upon precarious work (Booth, 2016). And third, social mobility has stalled in an increasingly tiered society, with the gap between the well-to-do and everyone else growing (Sellgren, 2016).

The impact of this shift has been to reduce the possibility of finding a secure and stable housing situation, career paths and job progression stall in the face of no opportunities, and in all, people can no longer expect to live a better life than their parent's generation.

Even with that damning assessment, the Tories have still found it possible to celebrate the shift towards ever more precarity (Stone, 2016). Damian Green, the Department of Work and Pensions secretary, called the shift away from stable hours, holiday pay, sick pay and pensions an exciting moment, praising the "gig economy" staffed by the "everyday entrepreneur".

The only possibility of finding excitement in these figures comes from an ideological viewpoint that reduces human life to little more than wage labour, and sees innovation only through the prism of strife, competition and exploitation - with social life, enjoyment, fulfilment or self-improvement as petty distractions.

But, as the rise of the Far Right is showing, people do not share that view. If work offers no rewards and doesn't lead anywhere, but to a never ending grind, then work is not a path to liberation but a prison. And that creates an opportunity for others to offer a way out - and to offer scapegoats.

People want more autonomy and elevating them, educating them and giving them more responsibility is idealism at its finest - but not at the cost of their basic life security. But nor should people have to cash in their autonomy, their liberty, in exchange for the promise of succour.

It is the job of progressives to offer a road on which stability and autonomy are wedded and sustainable. To build, not just an alternative view of the economy, but one that includes a path forward, with ongoing improvement of conditions and lessening of burdens built into it.

As the British Liberals of the 1920s put it:
"We believe with a passionate faith that the end of all political and economic action is not the perfecting or the perpetuation of this or that piece of mechanism or organisation, but that individual men and women may have life, and that they might have it more abundantly."
The aim for progressives must be to have an economy that serves people, not the other way around, and works towards their liberation.