Reasons behind the high unemployment rates

 

The causes of unemployment are disputed, however in the current shape of our society it can be argued that unemployment is resulting from insufficient effective demand for goods and services in the economy especially since the recession from late 2007. Even though the economy is beginning to pick up itself, numerous individuals remain unemployed.

Unemployment in the UK is much higher than commentators realise, statistics suggest that figures only include those out there looking for work and not those who rely on incoming benefits.

The most recent official statistics show that there are 5.87m on at least one of the out of work benefits. This astonishing figure includes all individuals who are officially on the dole as well as those who are on benefits such as incapacity.

An idea could be posed that 1m of those are actually incapable of working because they suffer from debilitating physical or psychological disabilities or because they are simply acting as careers, that leaves close to 5m people who should be working when in fact they are not.

Statistics from Liverpool show that 27.4% of the working age population  are out of work and instead on the non working benefits list, similarly in Glasgow 25.7%, Birmingham 23.3% and in Manchester with 22.5%. However, the gap is quite wide because in Richmond upon Thames it is a mere 8.1% and in Kingston with 8.3%.

Therefore it can be suggested that the recession is only partly behind Britain’s high unemployment rates when in fact the main issue is the welfare system which has incarcerated many individuals into a life relying on benefits.

It is difficult to suggest to someone who is out of work to take on board a low skilled entry level job as it eliminates the majority of all extra income gained.

It is vital that the rules in the welfare system replaced by a simple and collective benefit as advocated by Duncan Smith.

A better idea would be for the less privileged individuals in society to retain as much as any income they earn in the world of work, an incentive for them to turn their backs on welfare and get a job.