Adding to the unemployment rate

Immigrants and other people who wished to move into an area where they had few links would be moved down the priority list – a policy which will raise concern among Labour backbenchers who have warned the leadership not to get panicked into populist policies by the BNPs recent electoral success.

Now, we know that house ownership increases the unemployment rate. Having to sell up and buy again if moving for the sake of a job obviously makes the labour force less mobile (as against a purely private rental market).

Social housing is even worse, as moving across a local authority boundary area takes years long than selling a house. And now Brown has just made it even worse. And one effect of this change will be to increase the structural (as opposed to simply cyclical with aggregate demand) level of unemployment.

Well done Gordo!

3 thoughts on “Adding to the unemployment rate”

  1. I think it was in the early 70’s that the rules were changed to allow immigrants access to social housing. The Economist ran a piece that this caused socially mobility to collapse for Afro-Caribbean immigrants. (Sorry can’t find the link.)

  2. Immigrants and other people who wished to move into an area where they had few links would be moved down the priority list

    The ghettoisation act?

    Normal family, happen to be black/bangladeshi/other ethnic group of your choice
    Live in high crime neighbourhood, bad schools, children don’t fit in. Want to move to another area. It was already difficult, now its impossible. They have to live in their own little ghetto, because they don’t have “links” to anywhere else.

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