As the Coalition continues to focus on the UK’s structural deficit and talk about the medium and long term problem it poses to future prosperity, it worth pausing and noting that there is another structural problem that poses a greater threat to the future wealth and economic prosperity across the UK that everyone regardless of ideology can rally around to attempt to solve and that is structural unemployment, a curse that was with us long before the banking crisis, credit crunch and recession and has a particular resonance in Wales.
If your still not convinced it needs resolving then this post this from Economist Paul Krugman about a US Government report on the aftermath of the Great Depression is sobering
'In the light of this brief survey of the characteristics of the labor supply and the probable demand for labor, what is the outlook for unemployment? My opinion is that the demand, even though active and strong, will be met by supply which will be badly adjusted to fit it.
There may very well be a great shortage of labour of certain kinds, with no prospect of any shifting or adapting which will bring about an increased supply. But this will be accompanied by an actual surplus of labor in other occupations. I believe this present labor supply of ours is peculiarly unadoptable and untrained.
It cannot respond to the opportunities which industry may offer. This implies a situation of great inequality-full employment, much over-time, high wages, and great prosperity for certain favoured groups, accompanied by low wages, short time, unemployment, and possibly destitution for others.’
That’s right: in the depths of the Great Depression, wise heads proclaimed the problem one of structural unemployment, which obviously could not be cured just by increasing demand.
Having recently completed research into the state of the unemployment and job and training opportunities I have seen with my own eyes and am well aware of the miss matches of skills that do exists in some Welsh communities and keeps unemployed numbers higher than they ought to be.
Its yet another issue that needs to be addressed by the Work and Pension Secretary among the multitude of others issues facing the long term unemployed and those on Incapacity Benefit if he and his Government want to reduce the welfare bill and help get people back in to work.
And its not as easy a cause to fit in to soundbites as the deficit reduction, it’s as important, I wonder if we have any takers among our politicians and political parties for this structural fight?Any source
No comments:
Post a Comment