OVERVIEW
7. In paragraphs 14 to 31 we examine the evidence
for the proposition that in certain parts of the country there
is a lack of demand for labour. We examine the spatial pattern
in the disparity in unemployment and employment rates at the regional
and sub-regional level and how these increase when broader measures
of unemployment are used. We consider the arguments that surround
the level and distribution of vacancies. We also examine evidence
which suggests that there are fewer employment opportunities available
to the least qualified in high unemployment areas. We discuss
the impact that poor quality jobs have on the perception that
jobs gaps exist and we highlight the relatively poor performance
of the New Deal in those areas displaying the lowest levels of
employment. We conclude from the evidence that has been presented
to us that a lack of demand for labour is a feature of some labour
markets.
8. In paragraphs 32 to 41 we examine the Government's
response to structural unemployment. We highlight the difference
in the positions adopted by the Department of the Environment,
Transport and the Regions (DETR) and Department of Trade and Industry
(DTI) on the one hand and the Treasury and the Department for
Education and Employment on the other and briefly describe the
main demand and supplyside policies. We introduce evidence
which suggests a failure on the part of Government effectively
to coordinate the policy response to unemployment, and we
argue for a greater degree of local involvement in the development
and implementation of policy in this area.
9. In paragraphs 42 to 44 we indicate that the over
50s, those with low levels of skills and some ethnic minority
groups are most affected by a lack of demand for labour. We welcome
the Minister's commitment to ensuring that nobody leaves the New
Deal for Young People illiterate or innumerate and commend to
the Government the recommendations on improving the employment
opportunities for people from ethnic minority groups set out by
the Policy Action Team on Jobs.[12]
10. In paragraphs 45 to 56 we explore barriers to
employment. The negative attitudes held by some men towards new
types of employment are highlighted and we argue for the greater
use of job tasters and an increased emphasis on communication
skills throughout the New Deal programmes. We also highlight the
fact that the opportunities available to the unemployed are affected
by employer attitudes. Transport is cited as an important factor
in aggravating jobs gaps. We draw on a range of evidence which
indicates that poor and expensive transport links prevent unemployed
people taking up employment opportunities. We argue that specific
"access to jobs" targets should be included in local
transport plans and recommend that the Government should pilot
travel-to-work subsidies for the longterm unemployed. We
note that the benefit system can still act as a barrier to employment.
We acknowledge the value of the "make work pay" initiatives.
We welcome the Government's continuing review of the benefit system
and we call for additional flexibility, including paying existing
benefit entitlements to the longterm unemployed for two
additional weeks after they have entered employment.
11. In paragraphs 57 to 60 we examine the issues
surrounding the measurement of unemployment at the subregional
level. We note the increased need to target resources more effectively
and highlight the fact that small deprived areas in otherwise
prosperous regions can be overlooked due to a lack of robust data.
We also question the value of Travel To Work Areas and we ask
the ONS to review its use of claimant unemployment workforce data.
12. In paragraphs 61 to 66 we call for the development
of local tax structures aimed at attracting new jobs to deprived
areas. We argue that the Department of Environment, Transport
and the Regions should do more to encourage the use of local labour
clauses.
13. In paragraphs 67 to 76 we present evidence which
highlights the value of intermediate labour markets and we set
out proposals for their greater use. We also examine some of the
welfare to work initiatives in other European countries and we
suggest that more could be done in the UK to provide employment
opportunities in the local services sector. We also examine the
role of Employment Zones in improving the employability of people
in high unemployment areas and we question the Government's preferred
model of delivery.
12 The Policy Action Team on Jobs was one of a number
of policy action teams formed as a result of a recommendation
made by The Social Exclusion Unit in its report, Bringing Britain
Together; a national strategy for neighbourhood renewal. The
Policy Action Team on Jobs was tasked with developing an action
plan, with targets to: reduce the difference in levels of worklessness
in poor neighbourhoods and the national average; and within that,
to reduce the disproportionate unemployment rates for people from
ethnic minorities. Its findings and recommendations are contained
in Jobs for All, Policy Action Team on Jobs, DfEE, December 1999. Back
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