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Labour Struggles to Get Britain Back to Work Amid Rising Employment Concerns


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The government must take swift and decisive action to ensure the troubling employment trends highlighted by the Office for National Statistics (ONS) do not become a long-term problem. When Labour unveiled its *Get Britain Working* White Paper before Christmas, Prime Minister Keir Starmer emphasized, “Getting Britain back to work is at the heart of my mission to grow the economy.” His assessment is correct—economic growth cannot be achieved without a strong and active workforce, which is why the latest employment figures are cause for concern.  

 

According to the ONS, the number of payrolled employees increased by only 49,000 in January compared to the previous year, following a decline of 32,000 the month before. For a government that aims to increase the employment rate to 80 percent by bringing two million more people into the workforce, these numbers suggest that progress is falling dangerously behind. At this pace, it would take more than 40 years to reach the target.  

 

Labour’s ambition to *Get Britain Working* is commendable, as economic inactivity has been a persistent issue since the pandemic. Under the Conservatives, the number of people leaving the workforce grew significantly, and real-term spending on incapacity and disability benefits is now nearly 40 percent higher than in 2013. Work and Pensions Secretary Liz Kendall has acknowledged the scale of this challenge and has pledged to reform the benefits system to encourage employment.

 

She has made her position clear, stating, “There are people who shouldn’t be on benefits who are taking the mickey.” Even former Labour Prime Minister Sir Tony Blair recently admitted that the country “really cannot afford to be spending the amount of money we’re spending” on an ever-expanding welfare bill.  

 

However, businesses remain the key drivers of job creation, and current policies appear to be discouraging rather than incentivizing employment. The ONS data reveals that Labour’s increase in Employer National Insurance Contributions (NICs) and the looming Employment Rights Bill are having a predictable effect—businesses are cutting jobs instead of hiring.  

 

This should come as no surprise. The government is well aware of how taxation influences behavior. In her Budget last October, Chancellor Rachel Reeves increased the soft drinks levy to curb sugar consumption, raised alcohol duties to discourage drinking, and hiked tobacco taxes to incentivize quitting smoking. These measures rest on the widely accepted principle that higher taxation reduces demand. The same logic applies to employment—if hiring becomes more expensive due to increased Employer NICs, businesses will inevitably reduce job opportunities.  

 

The concerns surrounding the Employment Rights Bill further compound the issue. The Federation of Small Businesses has reported that 92 percent of small business owners are worried about the Bill, with 67 percent stating they plan to hire fewer employees as a result. Some MPs have even proposed amendments that would push for a four-day working week with no reduction in pay, a move that would significantly increase costs for businesses and further stifle job creation.  

 

Revitalizing the UK’s workforce should be a national priority. The Jobs Foundation has been engaging with businesses across the country, and many leaders have expressed their strong commitment to providing employment opportunities for those in need. However, they require government support to make this possible.  

 

Starmer and Reeves have made a show of their engagement with business leaders, but this dialogue must translate into policies that create a favorable environment for job growth. The government should back Liz Kendall’s proposed welfare reforms to ensure that work is incentivized rather than discouraged. It must also approach the Employment Rights Bill pragmatically, acknowledging the legitimate concerns of businesses and recognizing that most employers act in good faith. Additionally, the upcoming Spring Statement presents an opportunity for bold measures to stimulate economic growth and restore confidence in the job market.  

 

By adopting these strategies, the government can rebuild business confidence and ensure that the worrying employment trends reported by the ONS remain only a temporary setback in the journey toward *Getting Britain Working*.

 

Based on a report by Daily Telegraph  2025-02-20

 

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Posted
10 hours ago, Social Media said:

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The government must take swift and decisive action to ensure the troubling employment trends highlighted by the Office for National Statistics (ONS) do not become a long-term problem. When Labour unveiled its *Get Britain Working* White Paper before Christmas, Prime Minister Keir Starmer emphasized, “Getting Britain back to work is at the heart of my mission to grow the economy.” His assessment is correct—economic growth cannot be achieved without a strong and active workforce, which is why the latest employment figures are cause for concern.  

 

According to the ONS, the number of payrolled employees increased by only 49,000 in January compared to the previous year, following a decline of 32,000 the month before. For a government that aims to increase the employment rate to 80 percent by bringing two million more people into the workforce, these numbers suggest that progress is falling dangerously behind. At this pace, it would take more than 40 years to reach the target.  

 

Labour’s ambition to *Get Britain Working* is commendable, as economic inactivity has been a persistent issue since the pandemic. Under the Conservatives, the number of people leaving the workforce grew significantly, and real-term spending on incapacity and disability benefits is now nearly 40 percent higher than in 2013. Work and Pensions Secretary Liz Kendall has acknowledged the scale of this challenge and has pledged to reform the benefits system to encourage employment.

 

 

She has made her position clear, stating, “There are people who shouldn’t be on benefits who are taking the mickey.” Even former Labour Prime Minister Sir Tony Blair recently admitted that the country “really cannot afford to be spending the amount of money we’re spending” on an ever-expanding welfare bill.  

 

However, businesses remain the key drivers of job creation, and current policies appear to be discouraging rather than incentivizing employment. The ONS data reveals that Labour’s increase in Employer National Insurance Contributions (NICs) and the looming Employment Rights Bill are having a predictable effect—businesses are cutting jobs instead of hiring.  

 

This should come as no surprise. The government is well aware of how taxation influences behavior. In her Budget last October, Chancellor Rachel Reeves increased the soft drinks levy to curb sugar consumption, raised alcohol duties to discourage drinking, and hiked tobacco taxes to incentivize quitting smoking. These measures rest on the widely accepted principle that higher taxation reduces demand. The same logic applies to employment—if hiring becomes more expensive due to increased Employer NICs, businesses will inevitably reduce job opportunities.  

 

The concerns surrounding the Employment Rights Bill further compound the issue. The Federation of Small Businesses has reported that 92 percent of small business owners are worried about the Bill, with 67 percent stating they plan to hire fewer employees as a result. Some MPs have even proposed amendments that would push for a four-day working week with no reduction in pay, a move that would significantly increase costs for businesses and further stifle job creation.  

 

Revitalizing the UK’s workforce should be a national priority. The Jobs Foundation has been engaging with businesses across the country, and many leaders have expressed their strong commitment to providing employment opportunities for those in need. However, they require government support to make this possible.  

 

Starmer and Reeves have made a show of their engagement with business leaders, but this dialogue must translate into policies that create a favorable environment for job growth. The government should back Liz Kendall’s proposed welfare reforms to ensure that work is incentivized rather than discouraged. It must also approach the Employment Rights Bill pragmatically, acknowledging the legitimate concerns of businesses and recognizing that most employers act in good faith. Additionally, the upcoming Spring Statement presents an opportunity for bold measures to stimulate economic growth and restore confidence in the job market.  

 

By adopting these strategies, the government can rebuild business confidence and ensure that the worrying employment trends reported by the ONS remain only a temporary setback in the journey toward *Getting Britain Working*.

 

Based on a report by Daily Telegraph  2025-02-20

 

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UK struggles the same as the countries on the continent.

High prices for energy, disruption of word's trade chains. No investments, no innovations.🥺

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Posted
22 minutes ago, Sir Dude said:

Labour are enacting some very counter-intuitive policies at the moment, from trying to get the idle work-shy loafers into work whilst punishing businesses with extra taxes and extending worker rights, to Starmer prancing around the international stage committing UK forces to peace keeping operations but refusing to upgrade our military or increase spending.

There really is a deficit of experience and competence in the UK cabinet now, and all we are getting is lofty student union socialist ideology that has no place in the real world... only belongs in lefty university echo chanmbers. What Starmer and his Labour amateur politicians need to understand is realpolitik... and fast.

 

The UK's problems are systemic. Unless the country reforms thoroughly from top to bottom the decline will continue regardless of who is in office. For years the standard of 'leadership' has become increasingly dire and embarrassing.

 

It's time to leave the 19th century and come into the 21st. 

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Posted

The UK government is in denial about the solution to the problem. The UK government is spending beyond its means and taxes to support this excessive spending are too high. The current taxation and benefits system consequently disincentivizes work. It sends a very simple and clear message to taxpayers: you are not working for yourself, you are working for us, with effective tax rates up to 61% many have worked out that they are better off on benefits. And for those who do work, then potentially IHT up to 60% on anything they have saved (no, UK IHT, despite the UK government's rhetoric, is not limited to 40%) can leave some workers with less than 16% of their earnings to pass to their children, and many taxpayers are now voting with their feet and leaving the workplace or even going to work in other countries.

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Posted

It doesn't look like any party has the answer. A hundred years ago, the welfare state was based on a huge empire from which the Brits stole wealth and gave nothing back. Now there is no one left to steal from so the economics system that was is broken.

Everyone loves the NHS and the welfare state, but you can't blame politicians for not being able to balance the budget. Too much money is wasted. Look at the water companies.

Posted
16 hours ago, Homburg said:

The UK government is in denial about the solution to the problem. The UK government is spending beyond its means and taxes to support this excessive spending are too high. The current taxation and benefits system consequently disincentivizes work. It sends a very simple and clear message to taxpayers: you are not working for yourself, you are working for us, with effective tax rates up to 61% many have worked out that they are better off on benefits. And for those who do work, then potentially IHT up to 60% on anything they have saved (no, UK IHT, despite the UK government's rhetoric, is not limited to 40%) can leave some workers with less than 16% of their earnings to pass to their children, and many taxpayers are now voting with their feet and leaving the workplace or even going to work in other countries.

UK emigration is happening , not only going to work in other countries . Unlike the UK , these new motherlands only accept applications from those who have skills or high levels of educational qualifications . So while the UK loses talent they are being replaced by uneducated , unskilled , uncivilized persons who are adding to the burden of the public purse .    Brain drain .

This Labour government are changing the British way of life , for the worse . They have only just started and there will be much worse to come . The Spring Statement on March 26th , rumored  , a rise in income tax , a means test on pensioners triple lock state pension increase . Up to 100,00 foreign workers brought into the UK to build the 1.5 million new homes ( needed for the 3 million immigrants already here ? ) , an amnesty for 350,000 illegal immigrants . 

Is there no control or regulation on how governments perform ?  This bunch of Labour muppets need to be kicked out asap . The UK now almost beyond recognition .

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Posted

Including housing benefit and council tax reduction with PIP and Universal Credit, the total benefit to the scrounger claimant is in excess of £25,000.

 

If you got a job you would need to earn in excess of £30,000 p.a. to just remain in the same situation. And I haven't even factored in commuting costs!.

 

A lot of claimants cannot command £30,000 p.a. You would need to have skills to earn this in the UK. Even if they could get a job for £30,000, why would they bother?

 

That is why millions of people in the UK are long-term unemployed. The system has funneled them to this place.

 

No government is bold enough to make the decisions to make work financially appealing nor make claiming benefits unappealing. Not the conservatives, not labour.

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