Wednesday, 17 February 2010
Not over yet: recession continues to make life difficult for many
The number of people claiming unemployment benefit - specifically JSA, rose in Reading in January: from 3,970 i(n December 2009) to 4,190. This is not good news and should serve as a warning to those who think that the impact of Gordon Brown's recession is no longer being felt here, as well as a reminder that more work still needs to be done to support those affected. The claimant count as a proportion of the working age population across the South East in January was 3.6% - but in Reading it climbed to 4.3%.
Nationally, the number of people claiming unemployment benefit is the highest since Labour came to power. This is hardly a great endorsement of Labour's stewardship of the UK economy and Gordon Brown's famous pledge to "end boom and bust". And as many have observed - it is young people who are bearing the brunt of the recession.
What continues to concern me, is the fact that the largest group of people claiming JSA in Reading are aged between 20 to 24. Today's figures put this at 730 individuals.
Being out of work for any period of time can have a very damaging impact on individuals and for young people in particular. Another cause for concern in Reading is the increase in the number of people who have been out of work for over a year (claiming JSA): this has increased from 585 (Dec 09) to 640. This is a concern not least because all the evidence shows that the longer someone is out of work the harder it is them to get back into the labour market.
Nationally, whilst overall unemployment is down, the South East saw the biggest rise in unemployment during this period. - up by 12,000.
This evening at a meeting of the Corporate, Community and External Affairs Scrutiny Panel which I am a member, we heard that the number of young people not in education, education, employment or training (known as NEET) in Reading has fallen from a high of around 13.9% of 16-18 year olds (September 2009) to 6.1%. This is something I have been concerned about for some time. The decline in the number of NEETs is very welcome news and testament to the hard work that many local agencies including RBC and Connexions Berkshire have put in.
We must continue to actively support our young people in Reading to ensure they don't get left behind. The news that a number of 20 to 24 year olds are struggling to find work in Reading should be a concern for us all. At the CCEA meeting I requested that the Council as part of it's work to reduce the impact of the credit crunch locally investigates ways to support this group more effectively.
Whilst some commentators may have decided the recession is over we must not turn our back on young people in our own backyard, many of whom are still struggling. I will continue to campaign to raise the profile of the problem of youth unemployment and do my best to get action taken locally to help those affected.
Monday, 25 January 2010
Labour's plans to help young people are a drop in the ocean
But the proposals set out by Work and Pensions Secretary Yvette Cooper today constitute a drop in the ocean - and will go nowhere near helping all young people affected.
And they won't help all young people right now. And they are unlikely to reach many young people in West Reading who are out of work.
- Labour ministers promise that their package will help 470,000 unemployed young people 'over the next 15 months'
- But as I pointed out yesterday the government's own figures published last week revealed that there are currently approaching 1 million youngsters out of work
- Dig deeper into the details of Labour's plan and only 100,000 youngsters would be set to benefit immediately
- Labour's Future Jobs Fund will only create a possible 16,000 apprenticeship places (UK wide)
- But the Future Jobs Fund is no panacea. As I revealed on my Redlands blog last July the number of jobs this was set create across the South East region last year was predicted to be less than 5,000!
Yvette Cooper said today that each young person would be given their own named Jobcentre Plus personal adviser. I'm sure this will have young people jumping for joy. This won't provide young people with hope it's designed to get them more used to the idea of being long-term unemployed. Is this the message we should be sending young people?
As Ms Cooper acknowledges in her own press release thousands of young people have been unemployed for 6 months or longer - school leavers and graduates.
Why did Labour leave young people to languish on benefits for all this time before announcing today's long-overdue 'Guarantee'?
Contrast these plans with the proposals that Nick Clegg outlined last week which include:
Investing £900 million pounds which would:
- Go towards supporting ALL young people into training or paid work just 90 days or 3 months after they have been looking for work
- Guarantee the creation of thousands of extra higher education and training course places
- Fund a commitment to pay young people on an internship or training course £55 per week
It's clear for all to see: the Lib Dem proposals will help more young people into work, skills and training more quickly.
Monday, 18 January 2010
Reading - Tale of Two 'Cities'
I was not in the least surprised to see Reading listed as one of '5 big hitters'.
This is not the first time this thinktank has singled out Reading for praise.
Reading has a dynamic local economy and a resilient workforce.
Reading has many of the ingredients needed to be very successful: it has a mobile and highly-skilled workforce, good transport links and excellent universities in easy reach.
It's not difficult to understand why many blue-chip companies have set up business here.
We should be proud of Reading's progress to be one of the fastest-growing economies in the UK.
However, what concerns me is the evidence I see all around me which shows that not everyone who lives in Reading is able to share in and benefit from this success.
Inequality - linked to both health and wealth is a major issue in Reading and where you are born in Reading still has a big impact on how well you are likely to do in life and how healthy you and your family are likely to be.
This situation is not unique to Reading - but it's important to stress that Reading is not immune to problems faced elsewhere linked to recession.
And the gap between those who are well-off and worst-off is getting wider - as the recent Comprehensive Area Assessment of Reading (published before Christmas) confirmed.
This isn't just about statistics.
This is about whole families and neighbourhoods being blighted by poverty -including poor housing and bad health - just metres away from other communities with access to good housing and good schools.
In a town which generates as much wealth and success as Reading this is not acceptable, in my view. This is a damning indictment of years of Labour rule in Reading.
A Labour-run Council and a Labour government has not resulted in a fairer Reading.
I have campaigned extensively in recent years to highlight the disparity that exists between different neighbourhoods in Reading - and to get the Labour-run Council to take long overdue action.
My campaigning has resulted in more support for deprived neighbourhoods in Reading through the Thriving Neighbourhoods scheme and the creation of a 'Decent Neighbourhoods Fund' - to improve the quality of life for residents living on estates in Reading.
I have championed the needs of young people - because I think they have been let down badly by the Labour government and the Labour administration of Reading Borough Council.
I have highlighted the fact that what Labour has done nationally has been too little too late.
In Reading, the number of youngsters between 16-19 who are currently without a job, skills or training (NEETs) is regularly higher than any other towns in our region.
It has been this way for years because of Labour's complacent attitude.
Labour politicians have failed to get the best out of our schools and teachers - leaving some children ill-equipped for the modern workforce.
Recently the figure has come down to around 6% but it had been stuck at around 8% for the past few years - higher than anywhere else in the South East.
The Council has been forced to chase government targets around reducing headline 'NEET' figures rather than doing what is needed locally to support local people.
But 16-19 year olds are not the only group facing difficulties.
Let's also not forget too those 20-somethings graduating from Reading University or other local universities and wanting to live and work in the Reading area.
Many of these youngsters live in my ward in Redlands.
They are graduating with the highest debts of any graduates ever - chasing a dwindling number of vacancies.
The last set of Job Seekers Allowance figures I saw for Reading showed that the majority of JSA claimants are aged between 20 and 24.
Last Summer I reported that the number of young people who were unemployed was set to reach one million - a figure not seen for decades.
The graduates I speak to feel badly let down by this Labour government and its promises of a pot of gold at the end of the educational rainbow.
We cannot risk the creation of another "lost generation" of young people.
Being out of work is not only bad for the pocket, bad for the economy - it's bad for the health and well-being of our young people.
I have actively campaigned for action both locally and nationally for action to help support our young people in Reading.
This is because I am not prepared to accept the status quo and neither should local people.
If people want things to change they need to vote for change. Not more of the same from Labour.
Nick Clegg outlined the Lib Dem plan for a 'life boat' for Britain's young people including plans for more paid internships, fully-funded adult apprenticeships and a '90 day promise' (whereby young people would be offered work, training education or an internship after 3 months out of work).
Nothing I've heard from the Tories nationally or locally suggest that they would do anything differently to help make Reading a fairer, more equal place.
Last October I raised concerns about the plight of young people and got the Labour-run Council in Reading to hold a special summit on how we might better support young people.
This event was a real eye-opener for me: the young people who attended told heart-breaking stories about months of hopeless job-hunting, forced to spend their time handing out CVs in the Town centre.
There is no reference to any of these problems in the Centre for Cities report published today.
We must not turn a blind eye to real poverty on our own doorstep.
Months into the recession the economic indicators may be getting better but talking to young people and their families I know many hundreds of young people still face incredibly tough times trying to get onto the first rung of the career ladder and out of poverty.
They are our future and our future prosperity as a community and an economy depends on their prosperity.
With this in mind I wrote to RBC's Chief Executive and the Leader of the Council, Cllr Jo Lovelock today asking them if a follow-up meeting could be held focussing specifically on supporting young people through the recession.
We need to be absolutely sure that the Council, Connexions and local businesses are working together as effectively as they can to ensure no young person is left behind.
We also need to demonstrate to young people that we are 100% behind them.