
Contents
Series Editors’ Preface
Preface
List of Tables
List of Figures
Chapter One Locating the New Deal
Reforming Welfare and Redrawing Responsibility
Activating Labour Market Policy
Introducing the New Deals
Inadmissible Evidence? Geography and the New Deal
Aims and Approach
Chapter Two The Geographies of Worklessness
Introduction
The Unemployment Problem
The Geographies of Worklessness
The Policy Challenge
Chapter Three Local Disparities in the Performance of Welfare-to-Work
Introduction: Residual Pockets and the Geography of New Deal
Mapping New Deal Outcomes
Local Labour Market Flows
Local Disparities in Other New Deals
Conclusions
Appendix
Chapter Four Welfare-to-Work in Local Context
Introduction: Employability and Local Context
Low Employability in Buoyant Labour Markets
New Deals in Big Cities: Job Search and High Volumes
Expectation Gaps and Job Quality
Workfare Recycling in Depressed Local Labour Markets
Moves to Inactivity
Conclusions
Chapter Five A Geography of Mismatch? Employers, Jobs and Training
Introducing Gatekeepers’ Tales
Variations in Job Opportunities and Recruitment
A Pool of ‘Cheap Labour’?
The Role of the Job Subsidy
Training Provision under the NDYP
A Typology of Employer Participation
Conclusions
Chapter Six Localising Welfare-to-Work?
Local Flexibility and the New Deal for Young People
Partnership-Building and Co-ordination
Policy Learning and Adaptation
Innovation and Experimentation
Resource Targeting
Work-First Flexibility?
Conclusions
Chapter Seven Conclusions
The New Deal Policy Paradigm
Geographical ‘Anomalies’ in the Performance of the New Deal
Increasing Local Opportunities
A Final Note on Geography and Workfare
Notes
Bibliography
Index
RGS-IBG Book Series
The Royal Geographical Society (with the Institute of British Geographers) Book Series provides a forum for scholarly monographs and edited collections of academic papers at the leading edge of research in human and physical geography. The volumes are intended to make significant contributions to the field in which they lie, and to be written in a manner accessible to the wider community of academic geographers. Some volumes will disseminate current geographical research reported at conferences or sessions convened by Research Groups of the Society. Some will be edited or authored by scholars from beyond the UK. All are designed to have an international readership and to both reflect and stimulate the best current research within geography.
The books will stand out in terms of:
For series guides go to www.blackwellpublishing.com/pdf/rgsibg.pdf
Published
Putting Workfare in Place
Peter Sunley, Ron Martin and
Corinne Nativel
After the Three Italies
Mick Dunford and Lidia Greco
Domicile and Diaspora
Alison Blunt
Geographies and Moralities
Edited by Roger Lee and David M. Smith
Military Geographies
Rachel Woodward
A New Deal for Transport?
Edited by Iain Docherty and Jon Shaw
Geographies of British Modernity
Edited by David Gilbert, David Matless and Brian Short
Lost Geographies of Power
John Allen
Globalizing South China
Carolyn L. Cartier
Geomorphological Processes and Landscape Change: Britain in the Last 1000 Years
Edited by David L. Higgitt and E. Mark Lee
Forthcoming
Living Through Decline: Surviving in the Places of the Post-
Industrial Economy
Huw Beynon and Ray Hudson
The Geomorphology of Upland Peat
Martin Evans and Jeff Warburton
Peoples/States/Territories
Rhys Jones
Publics and the City
Kurt Iveson
Driving Spaces
Peter Merriman
Geochemical Sediments and Landscapes
David Nash and Susan McLaren
Fieldwork
Simon Naylor
Mental Health and Social Space
Hester Parr
Natural Resources in Eastern Europe
Chad Staddon
Complex Locations: Women’s Geographical Work and the Canon 1850—1970
Avril Maddrell
Climate and Society in Colonial Mexico
Georgina H. Endfield
Consuming Ethics: Markets and the Globalisation of Care
Clive Barnett, Nick Clarke, Paul Cloke and Alice Malpass
©2006 by Peter Sunley, Ron Martin and Corinne Nativel
BLACKWELL PUBLISHING
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The right of Peter Sunley, Ron Martin and Corinne Nativel to be identified as the Authors of this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher.
First published 2006 by Blackwell Publishing Ltd
1 2006
Library of Congress Cataloging-in-Publication Data
Sunley, Peter.
Putting workfare in place: local labour markets and the new deal/Peter Sunley, Ron Martin and Corinne Nativel.
p. cm. — (RGS-IBG book series)
Includes bibliographical references and index.
ISBN-13: 978-1-4051-0785-3 (hard cover: alk. paper)
ISBN-10: 1-4051-0785-5 (hard cover: alk. paper)
ISBN-13: 978-1-4051-0784-6 (pbk.: alk. paper)
ISBN-10: 1-4051-0784-7 (pbk.: alk. paper)
1. Youth-Employment—Government policy—Great Britain. 2. Welfare recipients-Employ- ment—Government policy—Great Britain. 3. Labor market—Great Britain. I. Martin, Ron. II. Nativel, Corinne. III. Title. IV. Series.
HD6276.G72S868 2005
331.3’412042’094109049—dc22
2005013100
The publisher’s policy is to use permanent paper from mills that operate a sustainable forestry policy, and which has been manufactured from pulp processed using acid-free and elementary chlorine-free practices. Furthermore, the publisher ensures that the text paper and cover board used have met acceptable environmental accreditation standards.
Series Editors’ Preface
The RGS/IBG Book series publishes the highest quality of research and scholarship across the broad disciplinary spectrum of geography. Addressing the vibrant agenda of theoretical debates and issues that characterise the contemporary discipline, contributions will provide a synthesis of research, teaching, theory and practice that both reflects and stimulates cutting-edge research. The Series seeks to engage an international readership through the provision of scholarly, vivid and accessible texts.
Nick Henry and Jon Sadler
RGS-IBG Book Series Editors
Preface
The move towards workfare policies represents a fundamental change in the welfare states and labour markets of many industrialised countries. Such a shift represents a process of activation in which the receipt of benefits and assistance are made conditional on the active fulfilment of job search and other work-focused obligations. Across the industrial world, politicians are identifying such policies as the solution to the entrenched problems of worklessness that have plagued their economies during the last few decades. Within Western Europe the UK has led the way in the adoption of workfare and the New Deal for Young People has been at the forefront. Buoyed by favourable national economic conditions since 1998, this flagship New Deal programme has been held up as a model to be emulated. While it has received much abstract and aggregate attention, there has been relatively little research into the uneven geography of the New Deal. The aim of this book is to look beneath the model and understand how this set of active policies has had quite different challenges and impacts in different local and regional labour markets. It attempts to contribute to the understanding of the role of geography in the constitution of labour markets, and to highlight the need to incorporate such understanding in order to construct effective and efficient policy interventions.
The geographical concentration of unemployment and worklessness has become one of the most problematic and stubborn features of the UK labour market. The book aims to consider how far the New Deal has been able to respond to and resolve this problem. How far have local flexibility and policy decentralisation allowed the programme to address dramatic differences in local labour market contexts? Despite the complexity of local outcomes, the book argues that the spatial variation in the New Deal tells a clear and systematic story in which the policy typically works more effectively in more dynamic and tighter local labour markets.
The geography of non-work is not a problem that has been virtually eliminated. Instead, the limitations and imbalance of supply-side active labour market policies, focused on raising individual employability, are most apparent in distressed local labour where there is less opportunity to find rewarding and stable job opportunities. The book discusses some of the implications of this finding for the idea of a new contract between unemployed individuals and the state. It outlines some of ways in which the local responsiveness of the policy could be improved, and some of the possible means of raising the demand for labour in depressed local areas. The need to do so remains pressing.
The research for this book was funded by the Economic and Social Research Council's Grant R000237866 (The Geography of Workfare: Local Labour Markets and the New Deal) and we would like to thank the ESRC for their financial support. We would also like to thank the many Jobcentre Plus (formerly Employment Service) officials, other local labour market agents, programme participants and employers who helped by providing information. We are especially grateful to those individuals who agreed to be interviewed in Cambridge, Edinburgh, Tyneside, Birmingham and North London. An earlier version of Chapter 3 was published in the Transactions of the Institute of British Geographers, 2001, NS Volume 26, pages 484–512, and an earlier version of Chapter 6 was published in Environment and Planning: Government and Policy, 2002, Volume 20, pages 911–932. We are grateful to the editors and referees of these journals. We would like to thank Tim Aspden and Bob Smith in the Southampton Cartography Office and Philip Stickler and Owen Tucker in Cambridge for their help in producing the figures. Finally we would like to acknowledge the late Pam Spoerry who drew many of the original maps for this project and provided much good-natured, professional help.
Peter Sunley
Ron Martin
Corinne Nativel
Southampton, Cambridge and Paris, August 2004.
Tables
2.1 | Unemployment, employment and inactivity across the OECD economies |
2.2 | Average net interregional migration in the UK and selected other countries compared (per cent of regional population) |
2.3 | Regional extremes in unemployment across EU-15 member states, 2002 (NUTS2 regions) |
2.4 | Twenty lowest and highest unemployment localities in the UK at the end of the 1990s (ILO-based unemployment rates, 1999–2000) |
2.5 | Twenty lowest and highest youth unemployment localities in the UK, 2003 (average annual claimant count rates) |
3.1 | Proportions of NDYP cohorts into ‘all jobs’ by UoD cluster type, at April 2000 |
3.2 | Balance of options by cluster type, first seven cohorts at April 2000 |
3.3 | Employment rates among 18–24 year olds for selected unitary authorities and counties, June–August 2000 |
3.4 | Outflow rates by cluster, quarterly averages for second quarter in each year, 1997–2000 |
3.5 | Immediate destinations for New Deal 25 Plus to December 2003 |
4.1 | The case-study Units of Delivery 102 |
4.2 | Percentages of NDYP leavers going on to other benefits, by selected JCP district to December 2003 |
4.3 | Percentages of enhanced New Deal 25 Plus leaving to other benefits, by district, JCP to December 2003 |
5.1 | Vacancies offered through the subsidised employment option |
5.2 | Occupational breakdown of subsidised job vacancies offered under the NDYP |
5.3 | Rates of pay and weekly hours of work in subsidised New Deal 18–24 jobs, by local Units of Delivery |
5.4 | Percentage of New Deal 18–24 recruits receiving different hourly pay rates |
5.5 | Estimates of additionality and deadweight effects in New Deal subsidised placements (percentage of vacancies) |
5.6 | A typology of employer participation in the NDYP and its outcomes for young people |
6.1 | Employment Service managerial responsibilities in NDYP |
6.2 | Numbers of Units of Delivery by type of delivery model |
7.1 | New Deal reforms and related initiatives |
Figures
2.1 | Some of the key forces of change and their labour market impacts. |
2.2 | Employment rates of working-age men and women in the UK, 1959–2003. |
2.3 | Total and long-term claimant count unemployment, 1948–2003 (quarterly data, not seasonally adjusted)36 |
2.4 | The positive relationship between unemployment and inactivity across OECD countries. |
2.5 | Working-age claimants of sickness, invalidity and incapacity benefits (long term – over six months) UK. |
2.6 | Regional claimant count unemployment rate disparities in the UK, 1974–2002. |
2.7 | Increasing local variation (Inequality) in unemployment rates across local authority and unitary authority districts in the UK, 1994/5–2001/2. |
2.8 | Local ILO unemployment rates (by local and unitary authority areas) across the UK, 1999–2000. |
2.9 | Local Working Age Employment Rates (by Local and Unitary Authorities) across the UK, 2001–2. |
2.10 | Local (UA/LAD) rates of long-term claimant unemployment, sick/disabled, and economically inactive, by census unemployment rate, males, April 2001. |
2.11 | Processes of hysteresis in high-unemployment localities. |
3.1 | Long-term unemployment rates, 18–24 year olds, by Units of Delivery, 1997. |
3.2 | Relative incidence of youth unemployment across the New Deal Units of Delivery areas (annual average for 1997). |
3.3 | Proportion of New Deal participants entering unsubsidised jobs, April 2000. |
3.4 | Proportion of New Deal participants entering subsidised or unsubsidised jobs, April 2000. |
3.5 | Job-entry rate for all Units of Delivery to March 2002. |
3.6 | Percentage leavers into jobs, Job Centre Plus Districts, January 1999 to June 2003. |
3.7 | Percentage leavers into unsubsidised sustained jobs, January 1999 to March 2003. |
3.8 | Proportion of participants remaining in jobs 26 weeks after leaving New Deal, at April 2000. |
3.9 | Proportion of participants leaving New Deal for unknown destinations, at April 2000. |
3.10 | Youth unemployment rates by local authority districts, 2003. |
3.11 | Long-term 18–24 year old claimant unemployment stocks, by selected Units of Delivery. |
3.12 | Long-term 18–24 year old claimant unemployment stocks, by selected Units of Delivery. |
3.13 | Unemployment outflow rates for selected Units of Delivery, March 1997 to June 2000 (18–24 year olds). |
3.14 | Unemployment outflow rates for selected Units of Delivery, March 1997 to June 2000 (18–24 year olds). |
3.15 | Unemployment inflow rates for selected Units of Delivery, March 1997 to June 2000 (18–24 year olds). |
3.16 | Unemployment inflow rates for selected Units of Delivery, March 1997 to June 2000 (18–24 year olds). |
3.17 | Inverse relationship between New Deal 25 Plus leavers returning to JSA and leaving to jobs, by JCP District, at December 2003. |
4.1 | Percentage of starts that are second and above, averaged between January 1998 and September 2003. |
7.1 | The relationship between unemployment and vacancies across local labour markets. |