Councils are learning the lessons of the past to prevent the recession creating entire generations of workless people
There is talk of the UK’s tentative recovery from the recession, but for many councils the need to manage the long-term effects of the downturn is becoming ever more pressing.
While the private sector might be showing signs of recovery, the public sector faces an unprecedented spending squeeze in coming years. The role of councils will be vital as the recession spreads from businesses into communities.
Figures released on November 11 from the Office for National Statistics revealed there were 2.46 million people looking for work over the third quarter of 2009 (7.8% of the working age population), a rise of 629,000 over the past 12 months. As there is a ‘lagging factor’ within the economic cycle, we cannot expect unemployment to fall markedly until 2012. The figures also showed that
six people were chasing every advertised job compared with 2.3 in January 2008.
Long-term worklessness is one of the most damaging impacts of a recession, both in the cost to the taxpayer and its social ramifications. Planning for the recovery now needs to be a priority.
Worklessness is not synonymous with unemployment – it describes those who need a job and would work if they had the right opportunity, incentive or path back into employment.
The challenge councils now face is two-fold: keeping people who have lost their job as a result of the recession ‘work ready’ so they do not slip into long-term unemployment as the economy picks up; and tackling the existing numbers of people who have not worked for a long time. Authorities can learn from the experiences and mistakes of others.
The differential impact of the recession is well documented. Areas that were already deprived have been the worst affected – largely metropolitan, post-industrial boroughs with the weakest economies, many of which were still recovering from the previous recession. Some areas will be especially badly hit by any sharp reduction in public sector jobs.
But it is often councils in the worst-affected areas that have been successful in tackling worklessness. Barnsley, a former coal mining area of South Yorkshire, is a good example of how well-run initiatives can take people out of the worklessness trap.
Barnsley Development Agency’s success in addressing the high number of people on Incapacity Benefits was based on a sophisticated understanding of the barriers to work, such as mental illness.
The council has also successfully bid for £4.2m from the government’s Future Jobs Fund aimed at getting young people into work or training. In October, 180 apprentices aged 18 to 24 joined the council and partner organisations. The money will create 614 jobs in the town in total, including 412 at the council.
Kent County Council has also been recognised for its pioneering welfare to work strategies – and it has put tackling worklessness centre-stage in its approach to the Total Place scheme.
Last month, the Improvement and Development Agency launched guidance, developed with 17 councils and partner organisations, on how to undertake a local economic assessment. This includes worklessness assessments and a series of ‘how to’ guides to help tackle worklessness.
Councils are also making inroads through procurement. They spend more than £42bn on procuring goods and services (over 40% of all their expenditure). Construction and maintenance – at £13bn – is one of the biggest areas of spend and more than £3bn is spent on waste services. The potential for tackling employment problems through contracting is huge.
Next February, the IDA will host a conference on public sector procurement in tackling worklessness, providing much needed inspiration in challenging times.
Sara Williams is strategic adviser for the Improvement and Development Agency. Visit the IDA website for all the resources mentioned
