Tougher benefit rules have boosted employment in the UK in the past 25 years but only at the expense of trapping workers in dead-end jobs, according to a leading thinktank.
The Institute for Fiscal Studies (IFS) said successive waves of welfare changes since the late 1990s had imposed more stringent conditions on those claiming jobless benefits and increased the incentives to find a job.
Yet its research also found that many of the jobs found were part-time, low paid and had scant chance of career progression.
So, increase the restrictions again then, no?
as opposed to trapping non workers into dead end free money.
Why are they trapped in a job? It’s always easier to find another job when you’re working, which demonstrates ability to turn up than it is to get a job when you’ve been unemployed for a while.
Trapped in unemployment I can believe, but not a job.
The people on low pay and part-time earnings are trapped in subsidised housing. Generally. They can’t relocate to places where there are more opportunities because they’ll lose entitlements and anyways little market housing gets built anywhere now.
Bongo,
It’s hard but not impossible. My brother moved from a London council to a council run sheltered accommodation in Leeds. There’s websites that help in finding swaps.
BiND,
Once you have a job, there’s less motivation to go looking for a better one. I’ve just been invited to apply for a job with a 20% higher salary, but I’m unlikely to do so because “better the devil you know”.
welfare changes since the late 1990s had imposed more stringent conditions on those claiming jobless benefits and increased the incentives to find a job
Not hugely so, as there are more than 5 million people on out of work benefits.
The bigger thing keeping people in dead-end jobs is the sweet spot of 16 hours a week. I think we discussed it before, but here’s the Telegraph link again: https://www.telegraph.co.uk/news/2022/12/09/britains-jobless-crisis-fuelled-benefits-loophole-encourages/
That’s an extreme example; but in general they find a marginal tax rate (benefits withdrawal rate) of 55%.
Andrew M,
You’re not trapped in your job, the trade-offs aren’t worth a move.
Someone who has been unemployed for a while and can’t even get a job interview, let alone job offer to turn down is trapped in unemployment, especially if their value is less than NMW.
Most jobs are ‘low paid’ by these people’s standards.
And what is it with ‘career progression’? How much career progression is there for a carpenter, mechanic, graphic artist, programmer – or doctor or lawyer?
‘career progression’ is something people who want to do management worry about – ‘I want to be on charge and tell everyone else what to do – everyone else gets on with making the product.
maybe might help people to understand the value of qualifications and experience!