The BBC always wondered out loud, mainly in the context of the Coalition government must be failing appallingly and yet unemployment keeps falling!!???!!, about the apparent puzzles of ever rising employment and the apparent lack of productivity.
The BBC never bothered to go out and just ask the businesses why they were employing people, that would be too easy. The BBC preferred to speculate and tell us that these weren’t real jobs, they were low paid, part-time, zero hours contracts that didn’t contribute to the economy.
The reality was that the open border meant that an endless supply of workers could be imported and employed on low wages. This is why employment kept rising and the low wages gives the clue as to why productivity was apparently so low…..it wasn’t low at all, it was just that the BBC used, knowingly, the wrong measure to judge productivity by comparing the number of workers with output when in reality they should have been measuring pay against output…the employers got the same level of output from more people but for less money meaning there was no fall in productivity in terms of cash….the companies did not have to invest in machinery and skills to drive up productivity.
On wednesday the Resolution Foundation confirmed that on 5Live (11 mins) and following that we had the BBC’s Rob Young (12 mins) talking about job losses due to the introduction of the national living wage…..what he had to say was interesting in light of the furore about the claims of job losses if we vote for Brexit and also in light of Port Talbot.
Fraser Nelson in the Telegraph says this about the potential job losses due to the Living Wage…
The Living Wage could make Port Talbot look like a drop in the ocean
David Cameron is mulling direct intervention to save Tata’s giant plant. Some 1,000 jobs are at stake, most in a part of Wales unlikely to recover easily from such setbacks. To hear Tories even discussing nationalisation gives an idea of scale of the panic.
It raises an interesting question: how would the Prime Minister react if another event were to cause at least 60,000 job losses among the low-paid? Because this is precisely what his new Living Wage is expected to do….. it risks dumping tens, perhaps hundreds of thousands of Britons on the new scrap heap of globalisation.
The BBC’s Rob Young says this…
‘Remember 60,000 jobs would be awful for those individuals but in the grand scheme of things it’s not a huge number given we’ve seen a pretty big and rapid fall in unemployment in Britain that many economists call a jobs miracle….’
Remarkable isn’t it how suddenly 60,000 job losses isn’t much to worry about and that we’ve had a jobs miracle. There was a time on the BBC when every little job loss was railed against and the government hung out to dry and the rise in employment was all smoke and mirrors hiding the real, dreadful, state of the economy.
I’m guessing the BBC likes the living wage or rather it’s been reconvinced of its value. When Miliband proposed it, first as the ridiculous ‘predistribution’, and then as the living wage, the BBC were all ears and cheered him on uncritically. When the Tories stole Labour’s thunder suddenly it was the worst idea out there and the criticisms never stopped…however it seems the BBC is swinging into line as its urge to undermine the Tories looks to be losing out to its liking of the living wage especially as groups like the Resolution Foundation back it, though with a few reservations.