Employment Rates

Matt Western Excerpts

Wednesday 6th June 2018 Westminster Hall

[Luke Pollard]

Indeed. The hon. Gentleman makes a good point. How statistics are presented by Government can sometimes devalue some of the credibility that the original source may provide, and I am sure that we can all bring to mind examples of that. On the subject of statistics, I am a great believer in the way inflation is calculated. If hon. Members will indulge me for a few seconds, I will explain. Inflation is calculated by taking a basket of measures, of everyday goods, and calculating the inflation rate based on the real-world experience of many measures, many goods, not just one of them. In that sense, a basket of measures can create a fuller, more thorough illustration of what is actually happening.

The reality gap between individual employment statistics and the lived experiences, especially of young people, would be addressed much more thoroughly by having a basket of measures than by focusing just on the jobless figures or any other singular reality. I suggest that when we look at how we talk about unemployment statistics, employment statistics and debt, we look at a basket of measures, which needs to include employment, wages and wage growth, in-work poverty, child poverty, homelessness and temporary housing, disposable income, the number and penetration of zero-hours contracts and especially their demographic targeting, benefit take-up, sanction levels, household debt and overall personal indebtedness. Perhaps those things could be wrapped up together as a new basket of measures whereby we can look at the lived experience of people in employment, because all too often the fact that someone is in a job and that there is a tick beside that box is what is presented by Governments of all colours. We know that the lived experience of people in work, especially in today’s economy, where simply having a contract does not guarantee that someone will get any wages at the end of the week or month, devalues some of the credibility that the jobless figures or employment figures may have carried in the past, when employment was more secure and long term.

[Matt Western (Warwick and Leamington) (Lab)]

My hon. Friend is making a very important point. I thank the hon. Member for Mid Dorset and North Poole (Michael Tomlinson) for initiating the debate. My hon. Friend discusses a basket of measures. Does he agree that one thing that we would want to establish, if it was a business that we were looking at, would be the number of hours being worked by those in work—that is, the number of hours or days available to work? That could be one of the measures showing that we actually have significant under-employment in this country and that, rather than a jobs miracle, we have something of a jobs mirage.

[Luke Pollard]

My hon. Friend has a way with words. Looking at the measure to which he refers as part of the basket of measures could well be useful. Indeed, we might also look at the number of jobs that individuals have, because although we have seen a rise in the number of people with contracts, many of those are part-time contracts, and people in Plymouth have certainly been telling me of needing not just one job but two, three or, in some cases, four or five jobs to pay their bills, because of the insecurity of those jobs and the hours they provide. Consideration of all those measures together would make possible a more informed value judgment about the state of the economy.

In recent years, we have seen a rapid shift towards a gig economy, and despite calls for an end to zero-hours contracts, many people are still struggling with the precarious nature of those contracts. There are some people who value zero-hours contracts, but my fear about what has happened with zero-hours contracts is that their utility for that small group of people has been overtaken by employers using them as a way of being more flexible with their workforce or cash flow. As a consequence, the utility of those contracts for a small number of individuals, because of the workplace flexibility they provide, has been eroded because they are being used to devalue secure work.

Before I came to the debate, I posted on my Facebook page—if anyone has not visited it, the address is facebook.com/LukePollard—to ask people what their experience was. I said, “I am going to a debate about employment statistics. Can you tell me your stories?” Normally on my Facebook page, I have a few regular posters, as I am sure other hon. Members do. What struck me about the response to this post was how personal, emotional and honest people were in telling me their experiences. If hon. Members have not done this on their own Facebook page, I encourage them to do so, because it helps to create a fuller picture.

Let me give some examples of what people said. Erin, who is one of my constituents, is a qualified secondary school teacher who has been forced to take zero-hours contracts by an employment agency for the past three years. She told me that, despite years of training, she was struggling to find permanent work, and that that has impacted her ability to pass the tenancy checks required for private renting. The figure for private renters in Plymouth, Sutton and Devonport is 43.5%, which shows just how important that can be. Erin now plans to leave the teaching profession for good and will be retraining in September. She is just one example of someone we need to retain in their role with more secure work.

Melanie is another example. She worked for three years at Royal Mail in Plymouth. She was on a fixed-term, 20-hours contract that was reviewed every six months. As a single parent, she spoke of the stress that the uncertainty of that brought, as she could never be sure that she would still have a job once the end of her contract rolled around. Although Melanie has managed to secure permanent employment elsewhere, her story is not uncommon.

Those types of lived experience are the stories behind the statistics. I am talking about the frequency of needing to go to another interview to get extra hours and then the concern and worry about what happens if an employer wants their hours to coincide with another employer’s hours. Those are concerns that many in this Chamber may not have experienced themselves, but they are genuine worries for many people up and down the country. That situation is adding to the complexity and inequality within our system.

Colleagues will know of the problems that universal credit has brought to the system. Indeed, the House of Commons Library points out that the roll-out of universal credit, which is taking place in part of the area that I represent but not all of it, skews the jobless figures for this period, so looking behind those figures is a little more complex and complicated than it might have been before universal credit was rolled out. I ask the Minister whether there is a way of navigating through that complexity and that added dimension to see what the underlying picture is. The roll-out of UC complicates that and affects our ability to get an accurate sense of where we are.

Universal credit is failing many people. We know the experiences that have been shared in this Chamber and elsewhere. Our benefits system should not allow people to spiral into more debt, and I am concerned about the sustainability of the system in its current form. Concerns around UC and the roll-out on to UC, especially for people in insecure work—although they may not be in the jobless figures that the Government provide—need to be addressed.

We also need to look at in-work poverty. I believe it is fundamental to most people’s reasons for entering politics in the first place—be they on the red team or the blue team—that they want to make the world a better place. The only disagreement I perhaps have with colleagues on the Conservative side is how to do that. In-work poverty should be anathema from the perspective of the Labour party, the Conservative party and other parties as well. We all aspire to help people into work so that they can provide for their families through the hard work of their own labour. If someone is in work and still unable to provide for their family, something is wrong with our economy.

We know that that is the case in Plymouth and elsewhere at the moment, because we are seeing a rise in food bank use. One day I hope that we will no longer need food banks and that the fantastic volunteers who staff them can be redeployed to other endeavours. However, I know that food bank use is going up, and having seen the work of the fantastic soup kitchens and soup runs in Plymouth, I know that demand is increasing among not just rough sleepers, but those in insecure work and temporary accommodation, who cannot make ends meet and who struggle to feed themselves and their families.

I highly recommend that Members of Parliament and those watching at home go out on a soup run. It is an eye-opener in terms of the lived experiences of those in our communities whom we may not see during the day. When they are handed a pasty or a banana from the back of an old Transit van—as happens every now and then in Plymouth—they give back stories and gratitude. It is a really humbling experience to see people who, in many cases, are now in work but still struggling to make ends meet.

We need safeguards to help those who are struggling to break into the job market and permanent employment, as well as to help those who are in the job market by making sure that work can truly pay. That is not where we are at the moment, and that is especially true for those with disabilities. One of my constituents, Jo, who works in the employment sector, told me that the job opportunities advertised for students and graduates often involve temporary contracts in low-skilled roles. Similarly, Mat, from Plymouth, shared his experience of having high-functioning autism and described his job search as “impossible”. That should shame us all. The challenge for us is how and where we present job adverts, what the employment process is and the jobs themselves. I am concerned that the lack of opportunities is impacting people in Plymouth on a personal and economic level, and we must act to contain the ongoing effects of not only unemployment, but under-employment and the impossibility of getting employment in many cases.

Many hon. Members will know of my desire to talk about transport. I occasionally talk about trains in this place. Connectivity for the far south-west is a complicating factor in the economic performance of Plymouth and the wider south-west economy, as it is for many other parts of the country. The investment we need in structural transport, both on road and rail, and bus services within cities, can open up and transform job opportunities.

I want to talk about buses for a moment, because when we look at under-employment, one concern that a number of people tell me about is that, without a car, they are sometimes unable to get to their workplace. That is because there is no public transport available or the buses stop at a certain time. That is especially true of low-wage service work. The hon. Member for Mid Dorset and North Poole talked about our hospitality sector. Without decent public transport, it is impossible for those people to get to shops, tourist attractions, cafes and restaurants early in the morning to provide sleepless people with their coffee on the way to work. The concern is that that means some people are spending their already low wages on taxis to get to work before the working day has started, eroding the value of that day’s work for them.

There is a lot we need to do to look behind the statistics. I encourage the Minister to look at whether a basket of measures could be more appropriate. To an extent, the debate as to what goes in that basket of measures—just as the debate as to what goes into the inflation measure—tells a story about our modern Britain. For example, when we take a record player out from the basket of inflation measures and put in an MP3 download, we can see the way the economy is changing. That same principle should apply to how we look at employment statistics and the lived experience of people seeking employment or in employment. One day I hope we will be able to take out sanctions and food bank use from that basket of measures. That should be a collective aspiration for all parties. Until the time when they are no longer in use, we should feature those as part of that collective basket of stories—that human lived experience—that sits behind the unemployment statistics. There are many other things we could add into that basket, such as mental health provision, which I have not spoken about, but I hope colleagues might add to the list in the debate.

So I ask the Minister whether the Department has considered a basket of measures in how it presents these stories, and I encourage all hon. Members to do as I did on my Facebook page and to get the lived experiences of constituents, because it is the most powerful and humbling experience.