Unemployment climbs to 5.2%, its highest level since 2021

The rate of people not in employment in the UK has risen further to 5.2%, according to new figures published by the Office for National Statistics (ONS). With that in mind, it’s clear why 82% of the UK supports an economic package that includes a Job Guarantee, polling from the Lancet shows. These new figures highlight the ongoing issue of UK unemployment.

Unemployment rises to its highest level yet

Labour’s unemployment crisis is impacting young people the most. More than 1 in 6 people aged 16-24 are unemployed — the highest level in a decade. Overall, the number of people not in employment stands at 1.88 million.

But that’s not the full picture. Another 9.4 million people are economically inactive — meaning they haven’t looked for a job in three months.

At the same time, there are only 734,000 job vacancies. And that’s before one considers if people have the skills for the job. It exposes the flaws in the government’s neoliberal outlook — the view that the market automatically solves everything doesn’t stack up.

This comes into sharper focus when considering 22% of Brits work a 60 hours of more a week, while millions don’t have a job.

Job Guarantee, the solution?

A Job Guarantee could be the solution to a disorganised labour market. To avoid some people doing no work, while almost one in four do 60+ hours, roles could be shared. Previous Canary analysis found that if everyone of working age dedicated just five hours a week to public sector work that would cover the lot.

To be sure, 46% of public sector jobs are specialist that require skills like doctors or firemen. But the five hour figure shows that people could do a small amount of work a week to cover the public sector as it currently stands — which would ease unemployment rates.

Free university training should simultaneously deliver the skills for a strategic jobs of the future such as automation and AI. It doesn’t mean forcing people into roles but finding the balance between a liberal approach and covering necessary roles. Higher pay packets could encourage people into positions that are strategic for the economy.

Meanwhile, a private market of small to medium size businesses should run parallel.

A Job Guarantee could ensure a modern work-life balance while scaling down damaging and unnecessary production, which 82% of the UK also supports, according to Lancet polling.

Featured image via the Unsplash/the Canary