spatially concentrated worklessness and neighbourhood policies: experiences from new labour in the...
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Spatially concentrated worklessness and neighbourhood policies: experiences from
New Labour in the UK
Stephen Syrett and David NorthCentre for Enterprise and Economic Development Research
(CEEDR), Middlesex University [email protected]
Paper presented at ESRC seminar Neighbourhood effects, neighbourhood based problems and international policy solutions’, 7-8th December, 2011, Department of Urban
Studies, University of Glasgow
context
persistence and worsening of worklessness concentrated in particular neighbourhoods
policy challenge of tackling this problem interrelations with other dimensions of deprivation need to address issue across spatial scales
series of policy initiatives under New Labour (1997-2010) assess impacts and findings of policy evaluations CEEDR research work for JRF, ODPM/CLG
structure
causes of concentrated worklessness in deprived neighbourhoods
differences between neighbourhoods policy responses
neighbourhood based worklessness policies sub-regional approaches
impact of policy interventions lessons for policy development
causes of concentrated worklessness (1) economic restructuring and labour market polarisation
deindustrialisation: worklessness entrenched in certain groups and regions
job growth: new jobs in edge of town/ out of town locations but weak migration & commuting flows
enduring spatial inequalities: inner cities, outer suburbs, one-industry towns etc.
polarisation: growth of insecure low pay employment, unattractive jobs
causes of concentrated worklessness (2) ‘vicious circles’ (re)producing concentrated worklessness
mutually reinforcing multiple dimensions of deprivation
social forces reproducing concentrated worklessness: individual/household (education, health, family fragmentation, lack of experience/contact with work)
key processes lack of equilibrating processes (migration,
commuting) housing market: residential sorting ‘scarring effect’ from past unemployment labour market externalities: ‘neighbourhood effects
Shorter EmploymentSpells
Family Fragmentation
LocalUnemployment
Limiting Illness
Single Job Seekers EducationalUnder-Achievement
PoorerLocal Information
Networks
Lower OccupationalAttainment
Causal Links in the Reproduction of Concentrated Unemployment
neighbourhood effects and worklessness minimal additional impact but compound problems of
labour market exclusion
socialisation processes: ‘cultures of worklessness’ perception, attitudes, aspirations (peer pressure; lack of
role models, low self-esteem; limited work experience)
social capital: contacts & networks job search; job information
stigmatisation and discrimination ‘postcode discrimination’
‘place-based’: physical isolation & poor public transport
differences between ‘deprived neighbourhoods’ (1)
people-based population characteristics (e.g. ethnic diversity, age) population change and turnover
place-based housing relation to city centres/transport networks wider local/regional economy
differences between ‘deprived neighbourhoods’ (2)
employment-deprived neighbourhoods in England (Lupton et al, 2011) highly deprived social housing neighbourhoods older workers in declining areas high churn neighbourhoods with younger workers ethnically mixed neighbourhoods in stronger labour
markets Inner London
regional variation in types need for different policy mixes and delivery mechanisms
sensitive to these differences
New Labour policy responses to tackling concentrated worklessness (1)
New Labour: aim to raise employment rate to 80% work as the ‘best route out of poverty’ ‘tight’ national labour market (to 2007)
‘lack of competitiveness’ (personal/household characteristics) ’supply side programmes (job readiness, training)
institutional barriers changes towards ‘conditional’ benefits system;
affordable childcare multiple causes & interplay of factors
mainstream policies complemented by area based initiatives (ABIs)
New Labour policy responses to tackling concentrated worklessness (2)
succession of ABIs (e.g. Action Team for Jobs; Working Neighbourhoods Pilot’)
neighbourhood policies: worklessness’ addressed as part of ‘integrated strategy’ New Deal for Communities (1998) National Strategy for Neighbourhood Renewal (2001)
New Deal for Communities
11% of NDC spending on worklessness (strategy development & working with local partners)
supply-side interventions (job brokerage, advice, guidance, skill development etc.)
worklessness rate within NDC areas fell from 22% to 18 % (1999-2008)
relative to ‘comparator’ deprived areas decrease in NDC areas was very marginally less
positive evaluations from local actors & beneficiaries & evidence for individuals of participation increasing likelihood of transition into employment
wider aggregate change versus individual level change
National Strategy for Neighbourhood Renewal (1) local authority led worklessness programmes targeted at
hard to reach clients (mainly advice, guidance, support)
at neighbourhood level: 10% most deprived LSOAs showed some improvement in relation to national average (but still seven times higher)
when most deprived areas compared to their district average – gap widened slightly
as economic growth slowed from 2006: negative impact
‘variable rates of improvement and limited impact’ (CLG, 2010)
National Strategy for Neighbourhood Renewal (2) ‘marginal positive impact on employment outcomes when
integrated with wider worklessness strategies’
positive impact favourable national economic conditions significant levels of focused long term investment
limited impact embedded cultural factors reduction in available job opportunities & access to
decent work population churn organisational barriers
workless neighbourhoods in local/sub-regional contexts neighbourhood policy refocused upon jobs & enterprise
(from 2005) integrate activity across spatial levels and greater freedom
for local/sub-regional action City Strategy Initiative (2007) – integrate employment,
training & health provision targeting disadvantaged groups & neighbourhoods
variable degree of spatial targeting - impact difficult to assess variation between strategies dramatic changes in labour market conditions (recession
and policies)
impact of policy interventions (1)
1997-2007 success in getting more people into work but no significant diminution in gap in levels of worklessness between the most deprived neighbourhoods and rest
recession exacerbating this situation
intensive neighbourhood level interventions do not have a major impact upon reducing worklessness
importance of understanding linkages of neighbourhoods to local/regional labour and housing markets (e.g. mobility)
impact of policy interventions (2)
neighbourhood not best level to respond to wider changes in labour markets - bodies operating at wider spatial scales better placed to devise strategy
demand side conditions largely ignored despite evidence of insufficient jobs in
areas of high levels of worklessness growth of low paid service jobs frequently not
sufficiently attractive (pay, hours etc.)
impact of policy interventions (3)
evidence of relative effectiveness of place targeted initiatives aimed at those ‘most distant’ from the labour market
effective in filling gaps of mainstream provision – localised, flexible schemes
‘what works’ - time consuming & resource intensive outreach voluntary initiatives and trusted delivery organisations accessible community based services personalised & holistic support trusted and motivated advisors long term support through process active employer engagement
conclusions (1)
neighbourhood policies poorly positioned to address labour supply-demand issues but key role in tailoring initiatives to local circumstances supply-side; neighbourhood effects; local institutional
barriers
scale of the problem deep seated processes of structural adjustment, major
recession and rising levels of inequality low levels of neighbourhood spending
need to integrate neighbourhood actions into wider economic strategies but barriers complex policy & governance environment lack of sub-national power & resources
conclusions (2)
crucial role of central state labour market regulation at ‘bottom end of labour
market’ welfare provision skills & education policy institutional factors: childcare, transport, housing
failure to tackle concentrated worklessness in period of strong employment growth versus economic downturn
public sector funding cuts will effect weakest local economies most
Localism; danger of leaving deprived neighbourhoods isolated when need to be integrated into local/city economy
Spatially concentrated worklessness and neighbourhood policies: experiences from
New Labour in the UK
Stephen Syrett and David NorthCentre for Enterprise and Economic Development Research
(CEEDR), Middlesex University [email protected]
Paper presented at ESRC seminar Neighbourhood effects, neighbourhood based problems and international policy solutions’, 7-8th December, 2011, Department of Urban
Studies, University of Glasgow