Don’t be fooled by Osborne’s employment rhetoric – it’s a red herring

The figures used by George Osborne in today’s Autumn Statement are nothing more than a confidence trick.

The Chancellor has quoted OBR statistics which show that employment is at “an all time high” and that levels of unemployment are forecast to fall to 5.6% by 2018. Using generalised statistics and evidence of a growth in new businesses to say there is an economic recovery, and that employment is rising paints a picture the Chancellor wants us to believe but it is a red herring.

Statistics which show that the number of people claiming unemployment benefit has fallen by over 200,000 in the last six months masks the reality that more and more people are being forced into low paid, unstable employment with minimal employment rights, or no rights at all.

Tax Research UK’s report into employment levels has concluded that various techniques are being used to hide the true figures including ignoring the growth in self-employment which is often a fig leaf for exploitation by established employers rather than a sign of any entrepreneurial zeal. And in October the Office for National Statistics issued figures showing that whilst the number of private businesses is rising, 75.3% of all businesses do not employ anyone beyond the proprietor. In fact, analysis shows a negative correlation between levels of self-employment and the wealth of a country’s population.

So while unemployment may be “lower than 2010”, to champion the bald figures is too simplistic.

Thompsons sees daily evidence of the impact of continued economic turbulence, the fragility of any recovery and the insecurity faced by workers lucky enough to have any kind of job. The real issue for our clients is unscrupulous employers using the threat of redundancies to extract cuts in pay and hours, exploitation of those desperate for work through a boom in zero hours contracts and the scandal of unpaid internships.

Our client, employed by a railway contractor on what the employer maintains is a zero hours contract, who had pay unlawfully deducted when she announced she was pregnant is typical of those we see who, though technically employed, have virtually no employment rights, low pay and no job security.

There are rising levels of redundancies and countless instances where people are being forced to recategorise themselves as self-employed, losing rights and security as they do so or face having no job at all.

Npower, last week announced 1,400 redundancies in the North East when they outsourced their customer services facility.  Since this government came to power we have provided legal advice and support to thousands of trade union members in similar circumstances and dealt with over 18,000 settlement agreements.

So, don’t be fooled by Osborne’s employment rhetoric.  We know from experience of the cases we deal with on a daily basis across the UK that for working people the real face of Cameron’s Britain is low pay and insecurity with more to come as the Tory drive to cut back on ‘red tape’ – aka fundamental employment and social rights of working people –  continues with no let up.

Victoria Phillips is head of employment rights at Thompsons Solicitors