Political Monitor
Excerpt from APSCo Monitor for week of 15th March 2010
What's being said in Westminster
Mandelson: New wave of private investment will renew economy
Business Secretary Lord Mandelson has marked the first year of the government's strategy to put Britain at the cutting edge of new industrial development. Launched one year ago, New Industry, New Jobs set out a new approach to active government investment driving economic growth. This strategy announced the government's intent to support private sector investment in the development of key new industries, especially in the infrastructure and skills they need to meet future challenges and take advantage of new opportunities.
Lord Mandelson said: "This is about making the economy ready for a decade of industrial and economic renewal in Britain. We will need new industrial strengths and we will need to reinforce our position as global leaders in innovative manufacturing and services.
This means not just getting the economy growing again, but asking and answering the big questions about how we are going to pay our way in the world ten years from now - the scale of investment we need from the private sector, in infrastructure and skills, demands that stability and certainty."
Speaking at the Institute of Mechanical Engineers, Lord Mandelson was joined by UK Commission for Employment and Skills chief executive Chris Humphries, who announced today's publication of the National Strategic Skills Audit.
UKCES' first ever audit of UK skills sets out current trends and what skills will be needed in the coming years, helping the government and employers plan for growth and ensuring individuals have the right skills to support businesses.
The report recommends focussing support on economically valuable skills in priority sectors; highlights the need for more information for employers and government on where high-value job opportunities will be in future; and calls for businesses to make more use of high-level skills.
Unemployment falls for third consecutive month
Work and Pensions Secretary Yvette Cooper gave a cautious welcome to falling unemployment figures and news that the number of young people claiming unemployment benefit is down for the fourth month in a row.
Yvette Cooper said: "The figures show the investment in jobs, education and training places is making a real difference. Half a million fewer people are out of work than anticipated at the time of last year?s budget - saving over £10bn as a result."
New figures published by ONS show the number of people claiming Jobseeker?s Allowance fell by 32,300 on the month and ILO unemployment fell 33,000 on the quarter to 2.45 million - the largest fall in unemployment for two and a half years.
The statistics show that the number of 18-24 year olds claiming Jobseeker?s Allowance has fallen for the fourth consecutive month, young people classed as unemployed on the ILO measure has also fallen for the third consecutive month.
What's being said in Parliament
Early Day Motion: Terms and Conditions of Employment
Members of the Conservative party front bench including, David Cameron, Jonathan Djanogly, John Penrose, Mark Prisk, Jeremy Wright, and Patrick McLoughlin have tabled the following EDM seeking to revoke the Government?s AWD regulations:
That the Agency Workers Regulations 2010 (S.I., 2010, No. 93), dated 20 January 2010, a copy of which was laid before this House on 21 January, be revoked.
A motion endorsed by the leader of the official opposition, David Cameron, in theory has to be debated on the floor of the House of Commons. However, with the dissolution of parliament looming as the General Election approaches there may not be time enough for this to take place.
What Stakeholder's are saying
Bank of England warns weak growth could spark job losses
Economists at the BoE believe that the flexibility of the labour market, which has meant that the recession has taken a much smaller toll on jobs than in previous downturns, could reach breaking point if consumer demand remains sluggish. They argue that any reversal in the "forbearance" shown by creditors and the tax authorities during the recession could also force businesses to shed more staff and spark a surge in unemployment.
Renato Faccini and Christopher Hackworth have written in the Bank of England?s Quarterly Bulletin that: "If ... the recovery in demand is more sluggish than businesses expect, or more businesses are forced into liquidation, then there is a risk that employment could fall further."
The Bank also believes that an upturn in confidence among workers could lead to another round of redundancies, as they may be tempted to ask for pay rises. "If companies cannot afford the increase, then they may shed labour in order to contain labour costs," the paper says.
Employment has fallen by 1.9 per cent during the most recent economic downturn, Bank figures show, compared with a 3.4 per cent drop in the 1990s? recession and a 2.4 per cent decline in the recession of the early 1980s.
http://www.bankofengland.co.uk/publications/quarterlybulletin/qb1001.pdf
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