Job Insecurities in UK: A Myth or Reality - Essay Example

XXXXXXX Number: XXXXXXXX XXXXXXXXXX XXXXXXXX XXXXXXXX of XXXXXXXXXX Job Insecurities in UK: A Myth or Reality Introduction: Over the years there have been a number of ups and downs in the employment scene of UK. There have been a number of cases where the employees within the country have lost jobs due to the environmental changes and changes in the economy of the country. This paper aims at discussing an issue that has been faced by people within the country, i.e. job insecurities. The paper will discuss in brief the various elements and current situation of the UK employment scene following which a discussion of the securities and insecurities of people will be discussed. Based on the study and research, a through conclusion has been made to give a clear insight into whether the job insecurities in UK are a myth or a fact. The next section will provide a brief overview of the UK employment scene. UK Employment Scene: As seen on the National Statistics website, the country’s unemployment rate for the quarter leading up to June 2010 was reported to be 7.8% which was noted to be down by 0.2% (National Statistics, 2010). The number of unemployed people also fell to 2.46 million during this period. The reports show that there was a fall in the number of people unemployed up to twelve months had fallen by 82000 and this reached a level of 1.66 million. However considering the number of people who were unemployed for a period of twelve months or more, it is clear that the number of people who were unemployed was much higher and this increased by almost 33,000 to reach 796,000. This has been recorded to be the highest figure since March 1997 (National Statistics, 2010). The graph below provides a clear insight into the current trend of the unemployment rate in the country. Graph 1: Employment and Unemployment Rate (National Statistics, 2010) Over the last two years it has been noticed that the government along with the help of the Bank of England have been able to improve the growth of UK. It is to be noted that the Government has continued to take a lot of efforts to build different programs which would help the country sustain its economic performance and ensure growth of employment within the country. The results have varied. The next section will deal with the job security and insecurity that is faced in the country. Job Security and Insecurities: With the current recession that has been faced by the country, there has been a major impact on the employment of people across the country. Unemployment rate plays a very important role in the macro economics of a country. The unemployment rate of a country helps macroeconomists analyse the number of people who are a part of the pool of labour however are unable to find work. It has been noted from previous reports that whenever an economy of a country witnesses growth which is indicated by the GDP growth rate the unemployment levels are likely to be very low. This is due to the simple fact that with the high GDP levels being reported it only means that the output of the country is higher, hence the requirement for labour is much higher to keep up to the levels of higher productivity of the country (Heakal, 2008). One of the major issues that are being faced by the employees across the country is the fact that the recession has led most companies to cut costs and thereby impacting the employees directly. As explained by Peter Done the managing director of Peninsula, “The economic situation is one that most employees will not have experienced before, so they are understandably going to feel more stressed; job security is at a real low” (Pothering, 2009). He also moves on to explain, “Workers should try to see the positive side of added responsibility and understand that showing an ability to cope with it now will put them in a better position for promotion when we emerge from this recession” (Pothering, 2009). Several reports from different organisations have clearly shown a level of insecurity of the employees within the country. A report by ‘The Poverty Site’ points out a few key points about insecurity and work. Firstly, it is to be noted that over the last decade, the number of men and women that claimed for the Jobseeker’s Allowance was much higher. Reports show that at least half of the men and one third of the women claimed for the Jobseeker’s Allowance in periods less than six month of their job (See Graph 2 below). This clearly shows the short nature of the work undertaken by most people and also brings out the number of people who tend to be unemployed because of such jobs and nature of such jobs. Graph 2: Job insecurity (Proportions) (Palmer, 2010) Secondly, the report highlights that there was a major drop in these above mentioned numbers. The main reason as explained in the report was not due to lesser numbers of claims in less than six months but was because of an increase in the total number of new claims which was relatively much higher. This was almost double in the first quarter of 2008 and 2009. Thirdly, the first quarter of 2010, saw a balanced out effort in the claims. It was here in 2010 that the number of claims less than six months was relatively the same however there were much lesser new claims that came in and the denominator in the proportion was now reducing to a great extent. It is also important to clearly note the explanation by The Poverty Site which explains, “Putting all this another way: job insecurity, as measured by the numbers making a new claim for Jobseekers Allowance who were last claiming this benefit less than six months previously, was at a record high in 2010 in terms of both absolute numbers” (See graph 3)(Palmer, 2010). Graph 3: Job Seekers Allowance - Absolute Numbers (Palmer, 2010) Another common issue that is being faced by a number of employees across the country is that the number of temporary workers is now much higher than in the past. This simply implies that the nature of all recruitments is more focused on shorter term contracts rather than on full term contracts and this leaves the individuals insecure about their jobs and positions in the market. The graph below provides a clear view of the number of people who work for temporary contracts. Also, as explained by The Poverty Site, “The vast majority of part-time employees – 80% – do not want a full-time job.  By contrast, only 25% of temporary employees do not want a permanent job.  This suggests that, whereas part-time employment is generally a positive choice, temporary employment is often not” (Palmer, 2010). In general the period of work and the term is generally much lesser thereby leading to higher insecurity among the employees. Graph 4: Temporary Contracts (Palmer, 2010) Apart from the above mentioned points, it is also essential to note that various studies and comments made by experts in the field. One of the leading sources of this discussion is the study by Heery and Salmon (2000), which highlights the fact that most companies tend to take steps to control the costs. Hence these companies tend to employ a higher number of contract workers and tend to reduce the full time workers. As explained in the study this is one of the major reasons for the workers in Britain to have a clear sense of work insecurity (Heery & Salmon, 2000). Another very strong point as explained by Heery and Salmon is that in the current times there is a clear hurry in joining and quitting jobs along with the new trend of excessive hiring and firing. This leads to the jobs being very short lives and thereby also leads to lack of continuity and permanent positions in the workplace. The authors have made an excellent point in this study and they explain that irrespective of the statistics of temporary workers and also that of contract workers. The authors explain that when individuals perceive themselves to be insecure in their jobs, then the insecurity tends to turn into a reality and even if they themselves don’t lose their jobs, there is a high chance for a known person, friend or family member who might lose their job. Knowing someone who has been made redundant itself amplifies the fright and leads to a magnified feeling of insecurity among the common individuals. The authors explain that there is a clear need to concentrate on other aspects of the society which also have an impact on the mindset of the employees (Toynbee, 2003). It is also important to note the comments and arguments by authors like Sennett 1998 and Toynbee 2003. The authors bring out various aspects of the business like the new trends of contracting new contract workers for temporary work in the company as compared to full time and permanent employees. Also as argued by Toynbee, most of the unskilled workers tend to be more insecure in the current times and with the increasing competition and continuous need for skilled workers, this is one of the leading reasons for insecurity among the employees (Toynbee & Walker, 2008). It is also argued that the rate of the unemployment has been taken very seriously by the government and all attempts are made to reduce the number of the unemployed to the maximum levels. This is for the simple reason that any under utilisation of the resources will only mean that the country has the ability to produce more but due to the underutilisation of resources the output is reduced and so is the productions (Labour Market Statistics, 2008). However there is still a major level of insecurity among the workers due to the changes in the environment. As argued by Sennett, there is a high chance that this can lead to a number of social issues and there can be a polarisation where there is a chance for the ‘employment rich and employment poor’. Sennett explains that the employment rich refers to the occupants that are skilled and those who have developed their skills to be able to meet up to the demand of the labour markets. These people tend to be well read and know their jobs well. On the other hand the employment poor refers to people who do not have the skills and necessary knowledge to be able to command high salaries or even put down their demands. In short both Sennett and Toynbee have focused on the latter and explain that these individuals tend to be faced with the issue of lack of employment as well as lowered levels of job security. Conclusions: In conclusion, based on the overall study and the various elements that have been put forth by various authors over the years, it is clear that job insecurity is not a myth. This is a harsh truth that people have been facing for a few years now. As explained by BBC news, “Some 24.2% of British workers think it is very probable or somewhat probable that they will lose their job over the next 12 months” (BBC News, 2005). It is essential to consider the views of Economist David Blanchflower who explains, “The question is whether this rise in fear foreshadows a rise in unemployment. I believe it does. The public is becoming aware that the coalition governments economic plans will lead to a decline in jobs. Consumer spending will slow again as a result - double dip here we come” (Carty, 2010). Hence it can be concluded that there is a high level of insecurity among the people and this is mainly due to the decline in terms of the statutory employment protection, as well as the decline in the number of jobs that are available to the employees across the country. There is a need for more permanent jobs and it is up to the employers to work to keep up the spirits of the employees. As explained by Peter Done, it is for the employers to work and try to ensure that the employees are happy and work in a more friendly and happy environment. This will help the employees get over the fright and insecurity and will permit a better chance for improved performance. With the current decline in the economy and the recession that is being faced the level of insecurity and discomfort is slowly on the rise and leaving the employees insecure of their jobs. Hence the statement, ‘Job Insecurities in UK’ is definitely true and is seen to keep growing within the country. Works Cited BBC News. (2005, November 16). UK staff top job insecurity table . Retrieved August 12, 2010, from BBC News: http://news.bbc.co.uk/2/hi/business/4443406.stm Carty, M. (2010). Job insecurity in 2010: Fear of unemployment is endemic in the UK. Retrieved August 10, 2010, from Xpert HR: http://www.xperthr.co.uk/blogs/employment-intelligence/2010/08/job-insecurity-in-2010-fear-of.html Heakal, R. (2008). Macroeconomic Analysis. Retrieved August 12, 2010, from http://www.investopedia.com/articles/02/120402.asp Heery, E., & Salmon, J. (2000). The Insecure Workforce (Routledge Studies in Employment Relations). Routledge. National Statistics. (2010, August 11). Employment. Retrieved August 13, 2010, from http://www.statistics.gov.uk/cci/nugget.asp?id=12 Palmer, G. (2010). Insecure at work. Retrieved August 12, 2010, from The Poverty Site: http://www.poverty.org.uk/57/index.shtml#nav Pothering, J. (2009). Job insecurity and workloads stress out brokers’ employees. Insurance Age. Toynbee, P. (2003). Hard Work: Life in Low-pay Britain. London: Bloomsbury Publishing. Toynbee, P., & Walker, D. (2008). Unjust Rewards: Exposing Greed and Inequality in Britain Today . Granta UK. Read More