by Michael Dugher
As expected, figures released today show that unemployment has risen again. It now stands at over 2.6 million – up 129,000 on the quarter and a 17 year high. Aware that more bad figures were on the way, David Cameron has arranged a “business breakfast” to “discuss youth unemployment” at Downing Street. And over at the department for business, innovation and skills, Vince Cable is to hold an “apprenticeship summit” for the TV cameras. But with the economy continuing to flat-line, for the now over 1 million young people out of work, gimmicky breakfasts and PR summits for the media are not enough.
Rising unemployment is an inevitable consequence of the lack of growth in the economy. And as yesterday’s OECD report highlighted, the UK slowdown happened well before the latest crisis in the Euro zone. Today’s jobless numbers mean that more than ever we need a real plan for jobs and growth.
As the shadow chancellor, Ed Balls, has set out, there are five clear steps the government can take immediately. First, a £2 billion tax on bank bonuses would fund 100,000 jobs for young people. Second, bringing forward long-term investment projects would help get people back to work and strengthen our economy. Third, reversing January’s damaging VAT rise would help high streets as well as struggling families. Fourth, a one year cut in VAT to 5% on home improvements would help homeowners and small businesses. And finally, a one year national insurance tax break, for every small firm which takes on extra workers, would help small businesses grow and create jobs. (more…)