Financial Times FT.com

Making work

Published: January 12 2009 19:40 | Last updated: January 12 2009 19:40

UK unemployment is still at a relatively low ebb. The tide, however, is coming in: joblessness will rise far and fast. Proposals by James Purnell, the work and pensions secretary, are intended to help manage this surge. Some of his ideas will work. Some will not. Even in the most optimistic scenarios, however, they will do little to push down unemployment. Before it can achieve that, the government will need to turn its attention back to the roots of the economic crisis.

Mr Purnell announced a £500m ($739m) package on Monday, aimed at people who have been unemployed for six months or more, at a “jobs summit”. This plan offers a job creation subsidy of up to £1,000 for prospective employers to take these unemployed people on and up to £1,500 for subsequent in-work training. For those who are still unable to find work, subsidised or not, the plan will pay for further training.

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