UK: Starmer Claims UK 'Simply Isn't Working' in Jobs Push

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Facts

  • Prime Minister Sir Keir Starmer has claimed that the UK 'simply isn't working,' as the Labour government published its Get Britain Working White Paper on Tuesday.[1][2]
  • The government has pledged to invest £240M (US$302M) in employment reforms. This includes replacing JobCentres with a National Jobs and Careers Service, guaranteeing all 18-21 year-olds access to an apprenticeship, training or education, and increased NHS investment and mental health support.[3]
  • A review into sickness benefits will also start in 2025. The government has claimed young people will lose support if they reject job or training offers, while Starmer has pledged to 'crack down hard on anyone who tries to game the system.'[4][5]
  • As of July-Sept. 2024, the total UK unemployment rate is 4.3%. Within the 16-64 year-old age bracket, employment is 74.8% — below pre-pandemic levels and short of Labour's target of 80%. The rate of economically inactive in the bracket sits above pre-pandemic levels at 21.8%.[6][7]
  • This comes as Confederation of British Industries (CBI) chair Rupert Soames claimed at its annual conference that an increase in national insurance contributions would affect employment — specifically citing young, part-time, and low-paid workers.[8]
  • At the same event, Chancellor Rachel Reeves told the CBI that she was 'never going to have to do a budget like that again,' having announced approximately £40B ($50B) in tax rises last month.[9][10]

Sources: [1]The Standard, [2]LBC, [3]GOV.UK, [4]BBC News, [5]Daily Mail, [6]ONS, [7]The Labour Party, [8]CBI, [9]Verity and [10]The Times.

Narratives

  • Left narrative, as provided by Guardian and The Mirror. Labour's approach to tackling the productivity crisis is a measured one that will help encourage economic growth. Instead of a blinkered focus on welfare state slashes, the government has correctly identified that any future changes to the benefits system must be balanced with investment and reform aimed at modernizing the job market and incentivizing individuals to participate in society.
  • Right narrative, as provided by Spectator (UK) and The Telegraph. With the Starmer government choosing to kick any attempt to tackle the ongoing benefits scandal down the road into 2025, Labour's allegedly-groundbreaking White Paper is nothing more than ineffective tinkering around the edges. Delaying necessary cuts to the spiraling benefits system, while forcing businesses to cut jobs thanks to increased national insurance contributions, is a recipe for an unemployment disaster.

Predictions