Employment to be a key issue in 2010 election

With the 2010 election now in our midst, it seems that employment will be one of the key issues.

One of the main things that the next government will need to tackle is the number of people who are long-term unemployed – there are still around 2 and half million people out of work with little sign of this figure dropping. Indeed, the only way this figure has been stemmed has been through the sharp increase in people going into further education and those who have simply given up looking for work. Many analysts have pointed out that economic recovery may be a ‘jobless recovery’ with very few extra employment opportunities created.

Another issue is the number of young people not in employment, education or training (often referred to as NEETs). Figures from the Office of National Statistics (ONS) show that the number of NEETs grew by 40,000 this year and this area is one where each party will look to be creative in order to drive down the number of inactive youths. With youth unemployment standing at 14.8%, compared to 7.8% of the working population as a whole, it can be argued that the recession has hit young people the hardest. While all parties have recognised that this is an area which needs to be addressed, none have proposed any radical changes to the current strategy which clearly isn’t working.

Save our Jobs

There is also the thorny issue of the proposed rise in National Insurance by the Government. Business groups such as the CBI, the Institute of Directors and the British Chambers of Commerce have backed the Tories plan to curb the hike in National Insurance saying the rise amounted to “a clear and unequivocal tax on jobs”.  The business groups argue that they shouldn’t have to pay for the Government’s profligacy and say that the Government should learn to cut back and save money where possible. Gordon Brown hit back by saying that without the rise, public services such as hospitals, schools and policing would suffer.

All in all it seems that issues around employment will be a key factor in determining who wins the 2010 election.  The party that best demonstrates how they plan to combat long-term unemployment and youth unemployment as well as providing sustainable job creation will go a long way towards winning this election.