During his first speech at his party conference as prime minister, Keir Starmer emphasized that getting people back to work is a key priority for his administration. He suggested that even those who are long-term ill should seek employment if possible. Over the last 14 years, UK benefit claimants have faced increasing demands to prove they are actively job-hunting, a strategy driven more by ideology than evidence, similar to approaches in countries like Australia and Ireland. This method relies on a basic incentive-punishment model of motivation, with a “work-first” philosophy that urges taking any available job regardless of its suitability or longevity.
However, a new report suggests that considering people’s lives holistically, acknowledging their challenges, is likely to yield better outcomes. A shift from “work-first” to “career-first” is needed. Since the COVID pandemic, the UK has seen a notable rise in economic inactivity, with fewer workers entering the job market and more older workers retiring early. Long-term illness has also significantly increased unemployment. This scenario poses a challenge for the new Labour government, which is banking on economic growth to improve the country’s financial standing.
Economy growth is challenging to achieve through efficiency alone as it requires investment, making expanding the workforce a more straightforward option. Responding to the risks of economic inactivity, the Institute for Employment Studies launched the Commission for the Future of Employment Support in December 2022 to evaluate public services that assist job seekers and employers. Their report places employment support within the broader challenges of the UK labour market and its impact on economic growth. With the government ruling out raising major taxes, fostering economic growth has become a top priority, making workforce economic inactivity a significant concern.
The commission’s most severe criticism is directed at how employment support has become intertwined with welfare conditionality, which involves imposing conditions on claimants, surveilling their compliance, and penalizing them by withholding benefits. Individuals face complex situations which can lead to unemployment, such as issues with skills, confidence, health, geographic location, or responsibilities for dependents.
Addressing these complexities is crucial for effective career support, which should focus on the whole individual and sustainable employment paths. The report’s recommendations align with the Labour party’s promise to establish a jobs and careers service, part of its plan to boost economic growth. Labour proposed integrating the Jobcentre Plus network with the National Careers Service. The commission suggests three delivery methods: local offices, an online platform, and outreach for those encountering significant barriers. They also propose an entitlement to employment advice and a clearer separation between employment support and welfare benefit management. The feasibility of these proposals seems strong, supported by historical evidence, international comparisons, economic data, and service evaluations. Success will likely depend on adhering closely to the commission’s vision.
Three interconnected issues must be addressed to implement these changes. The first is the financial constraints facing the UK government, which limit investment capability. Second, viewing service users merely as a reserve labor force for economic growth could hinder reform efforts. Third, career development is a specialized service requiring professionally trained staff with ethical guidelines who prioritize the service user. Previous experiences with integrating career guidance into public employment services in Europe show that professionalism can be compromised by the host agency.
The responsibility now lies with the Department for Work and Pensions, particularly Secretary Liz Kendall and Minister Alison McGovern. The devolved governments of Wales, Scotland, and Northern Ireland may also play a part, as these issues fall partly under their jurisdiction. The report advocates for more comprehensive and consistent devolution of employment support powers to UK nations. Local labour market partnerships in England are also included in this concept. This approach involves collaborating with local governments, skills agencies, employers, trade unions, voluntary and community organizations, and health services to form an integrated jobs and careers service. Given the wide geographical disparities in labour markets, it is logical for local regions to create their own cooperative structures between different services.