Member Article

UK?s ?hidden? unemployment among part timers

The number of people out of work for more than a year in the UK is at its worst since 1996, research from the IPPR suggests.

Last month’s figures show unemployment fell by 7,000 in the three months to July, with the unemployment rate at 8.1%.

Ahead of the today’s latest stats, the think tank say swathes of “hidden unemployment” is evident among part time workers, temporary workers and the self-employed.

Over 1.4 million part-time workers say they are willing to work full-time, and another 658,000 temporary workers would prefer full-time work.

IPPR say they are also concerned at levels of young unemployed (16-24), which has risen for the first time since the Government’s Youth Contract was introduced.

UK youth unemployment remains over a million, up 7,000 since the last quarter and up 37,000 in the last year. A total of 266,000 young people have been unemployed for more than a year, showing an increase of 31,000 over the last year and 23,000 over the last quarter.

Regional analysis of unemployment, compared with a year ago, shows Yorkshire and Humber fared worst with 28,000 joining the unemployed ranks, followed by the North West with a 27,000 increase.

Tony Dolphin, IPPR Chief Economist, said: “Even if the economic recovery picks up momentum in 2013, there is no guarantee things will get any better for young people and the long-term unemployed. Hundreds of thousands are at risk of permanent ‘scarring’ in the labour market: having their long-term outlook damaged by long periods of unemployment or by a difficult and patchy entry into the world of work.

“The government should guarantee a job, paid at the minimum wage or above, to anyone who has been out of work and claiming JSA for more than 12 consecutive months. If people do not want to take up this offer, they should be expected to find an alternative that does not involve claiming JSA.”

This was posted in Bdaily's Members' News section by Tom Keighley .