Analysis: We need to show people will be rewarded for work

In 2007, the Centre for Social Justice carried out a study that compared the parts of Glasgow where there were high levels of economic inactivity with estates where there were very high levels of unemployment.

We found pockets where there is a benefits dependency and a system that's dysfunctional.

That partly helps to explain the problems yesterday's figures set out.

Hide Ad
Hide Ad

Under the current benefits system, some people find that it doesn't pay to work, and there are generations of people who have never been in a job.

One of the explanations for these high unemployment figures is the low levels of aspiration and the lack of role models, in terms of people already in work.

Of course we need economic growth, but one of the key drivers in reducing unemployment problems like this has to be reform of the benefits system and offering increased support to help people find work.

The longer people are out of work the harder it is for them to get back into the labour market.

We need to tackle the problem on an area-to-area basis and attempt to break the cycles of unemployment that we see in these figures.

It's a complex issue, but we need to show people that they will be financially rewarded for work.

If a number of people are out of work in a community, then there's a danger that this can spread and it gets around that people are better off by not working.

What can reverse some of the problems with unemployment is if a number of people find work in a community and others see that those in jobs are better off and are able to do more things with their new income.

Hide Ad
Hide Ad

People potentially moving from benefits into work obviously have cash flow issues, and if they have a history of not working there will be some people who are worried about their situation.

The UK government's plans to introduce a universal credit system is one major change that could help tackle the problem.

It would ensure that people get some of their benefits and wages for being involved in work programmes.

There's also the issue of helping people develop the right attitudes - the ones that employers are looking for.

Employers want to know that people will be punctual, presentable and that they will achieve for them. That's why there's a very real need to ensure that people have the right support to have these basic things when they go for a job.

The changes the Government are making hopefully will make a difference to unemployment levels.

But the key challenge in all of this is to show to people that they are better off being in a job. This can be done by boosting people's self-esteem and giving people the opportunity to work.

The problems we have with unemployment are not irreversible, and we offer help to communities who have been affected by it for decades.

• Deven Ghelani is a senior researcher and welfare and employment expert at the Centre for Social Justice.