The high street job centres of the UK have been inundated recently, as more and more people in the country struggle to find full time work. However, as unemployment figures fall, a more pressing problem has emerged – ever increasing numbers of people in the UK are now classed as “long term unemployed”.
According to a report by the Institute for Public Policy Research (IPPR) think tank, long term unemployment is the “hidden crisis” hampering Britain’s attempts to boost the failing economy, with commercial property closures and liquidations not only adding to the unemployment figures but making it more and more difficult for those who have been out of a job for more than a year to climb back onto the career ladder.
The number of people without employment in a commercial property workplace fell by 0.2 per cent to 8.2 per cent, which compares favourably to the European average of 10.3 per cent. However, the number of Jobseeker’s Allowance applicants in May rose by a staggering 81,000, both seeing figures hit 1.6 million and also putting an end to the declining numbers seen in the previous two months.
Worse, the number of people who have not been able to find work in a commercial property for more than a year hit 886,000 – an increase of 85,000. Meanwhile, those who fall into the category of having been unemployed for two years saw a further 29,000 people join them, bringing the total to 434,000.
IPPR Chief Economist, Tony Dolphin, says; “As a general rule, the longer someone is unemployed, the less likely they are to ever return to work.
“Being out of work for more than a year can have a scarring effect, making it harder to get a job as well as having a negative impact on one’s health and well being.
“This means that even when employment starts to pick up again, the long-term unemployed will find it hard to compete with other jobseekers and could find themselves permanently shut out of the market.”
Although the rising figures of those in employment may seem like a positive step, the Office of National Statistics (ONS) revealed that the numbers of people in part time, or who are self employed, is a large contributory factor to the results.
Part time commercial property workers now number almost eight million, with 1.4 million now settling for a part time job in a commercial property because of the lack of full time positions available.
Self-employment is now at an all time high, with an increase of 84,000 people choosing to set up their own commercial property business or moving into e-commerce in the last quarter alone. It is estimated that Britain’s self-employed number 1.4 million.
Chris Grayling, employment minister, spoke of the findings, saying; “Any fall in unemployment is very welcome but I remain cautious over the next few months, given the continuing economic challenges we face.
“There are more jobs available in the economy with vacancies at 465,000, up 7,000 on this time last year. The number of people employed in the private sector is up 205,000 on the quarter, more than offsetting a 39,000 fall in public sector employment.
“Long term unemployment is the key employment challenge in Britain. That’s why we’ve launched our Work Programme with a particular focus on helping the long term unemployed get back into the work place.”
The Work Programme is a job guarantee scheme specifically aimed at those who have not been able to find employment in a commercial property place of work for a year or longer. As part of the terms, applicants will be offered a six month job placement in a participating commercial property, which they must accept or risk losing their Jobseeker’s Allowance.
Do you believe that schemes such as the Work Programme will encourage more long term unemployed people back into commercial property places of work? Or do you believe that there are simply not enough jobs to support Britain’s growing population?
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