Birmingham should be first to gain from new jobs scheme, says TUC

The TUC is calling on the Government to inject £2 billion into new work schemes for the long-term unemployed today (Tuesday), the day before the new unemployment figures are due out.

The TUC believes that £2 billion could create at least 100,000 new paid work experience jobs in areas of the UK suffering from high levels of unemployment, and that Birmingham should be one of the first places to gain from the scheme.

The new jobs would be targeted at those finding it particularly hard to find work during the recession, such as the long-term unemployed and young people. People on the work experience schemes would be supported by training opportunities, and given assistance with finding more permanent work and arranging childcare.

Under the TUC proposals, the jobs would last for up to a year and would be offered to those who have been claiming Jobseeker’s Allowance (JSA) for more than six months. Participation in the scheme would be on a voluntary basis. The jobs would be created in areas of value to the community, such as childcare, sports, transport and energy-saving (such as home insulation) and workers would be paid at the going rate for the work.

The TUC believes the jobs could be run by a combination of local area partnerships, unions and Jobcentre Plus, and that costs involved in setting up the programme would more than offset the expense of supporting workers who go on to become unemployed for five or ten years.

The TUC has identified a number of towns – outside of London – with the most people who have been claiming JSA for more than six months. The TUC believes the first 50,000 jobs created through the paid work experience programme should be set up in these areas to get the scheme up and running quickly.

Birmingham (10,000 new jobs), Belfast (6,000 new jobs) and Liverpool (5,000 new jobs) should see the creation of the most new jobs under the TUC’s proposals. Glasgow, Newcastle upon Tyne, Sheffield, Manchester, Nottingham and Cleveland would also be amongst the first towns to benefit from the programme.

The London boroughs of Tower Hamlets, Newham, Haringey, Lambeth and Southwark should be the first in the capital to roll out the scheme, says the TUC.

TUC Midlands Regional Policy and Campaigns Officer Alan Weaver said: ”In previous recessions well-qualified workers who have lost their jobs have tended to find work again quite quickly. However, younger workers and low-skilled employees who have been unemployed for a long time can find their already limited opportunities back into work squeezed even more during a recession.

“Properly defined new work schemes have proved successful in the past, and the
Government needs to do all it can to minimise the grim impact of the recession, and ensure that the UK is poised ready to make the most of opportunities for recovery.”

The TUC’s call for an intermediate labour programme is part of the TUC’s 2009 Budget submission. The full submission is available at: www.tuc.org.uk/extras/2009budgetsubmission.pdf