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The Fight against

Unemployment
I. Introduction

Unemployment is a problem that each society faces, and each society must find a
way to beat it. The Conservatives believe that a pro-active stance to ensure that the
economy remains sound is better than simply passively looking at what's happening.
We believe the Government needs to shape the economic environment using the
correct tools to ensure that there are enough jobs and that the economy is growing.

It is a fact of life that the Government has an effect on the economy, and we know
the outcome of excessive intervention. We also know the dangers of absolutely no
active intervention as well. The compassionate Conservative solution to this puzzle is
to state that the middle ground is best. The kind of intervention that is needed is the
kind of intervention that gives more freedom to economic agents by giving them the
information or the skills they need to be successful.

Perfect competition is only possible in a model, but that does not mean that the
Government should not strive to ensure that it exists. The Government has a role to
play on job creation, because there are causes for lack of jobs and economic
stagnation that the Government can help to solve with sensible economic policies.
"The Fight against Unemployment" is one of the most important fights any
Government faces, and it is a fight a Conservative government intends to win.

“This Conservative party, this Government, we want


to make a difference for Britain. We want to create a
Britain where people have a job they enjoy and feel
proud of. We want people to feel as if they’re making
a valuable contribution to society by putting in a
day’s hard work.”
-- Archie Gillespie

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II. Two Kinds of Unemployment
II.1. Frictional Unemployment

Frictional unemployment is not permanent; there is unemployment because of the


current conjecture, not because of the underlying system. For example, a person
who just came into the job market and does not have a job because he hasn't yet
found one, that is a form of frictional unemployment. The economy is able to create
jobs, but people don't immediately fill them for a wide variety of reasons, and there
are jobs to be taken for people to work in.

II.2. Structural Unemployment

Structural unemployment does not just occur because of the current conjecture; it
exists because the system is unable to create enough jobs that people can work in.
This may mean not creating enough jobs full stop, not creating jobs that leave part
of the population without the possibility to work, particularly because they have
different skills from those needed in the job market.

III. Key Causes of Unemployment


There are many causes for unemployment, and it is vital that we understand them all
to be effective in combating this great social evil. Only by offering solutions to tackle
the causes of unemployment can we really solve the problem; treating the symptoms
is not enough and will have the same effect as a painkiller: you numb the pain but
the problem doesn’t go away and, what’s more worrying, painkillers are addictive,
and so are solutions for the symptoms of unemployment as opposed to the causes.
The vicious effect thus created means that you will have more and more
unemployment and you will never do anything about it because “it doesn’t hurt” and
then, suddenly, one day it does “hurt”, and there’s little to be done about it.

III. 1. Recessions

When the economy is not growing, then jobs aren't being created and unemployment
rises. Combating recessions is done through a prudent fiscal policy that includes
incentives to invest and to spend money, including lower taxation and interest rates.
An independent Bank of England would keep an eye on interest rates to ensure
inflation does not rise too much and bring the United Kingdom back to the days of
stagflation.

Recessions are a reason why Conservatives want sustainable growth with a prudent
fiscal policy. Recklessness in public finances means that a recession strikes harder
and does a lot more damage. We will follow a policy line designed to ensure that the
economy is growing and creating jobs, as outlined in the Conservative manifesto,
and that means that if the world economy takes a turn for the worse, we are ready
to deal with it and the blow will be softened.

III. 2. Over-Regulation

Over-regulation is an important cause for unemployment. Too much burden on a


business’ shoulders and that business cannot afford to expand and, with its
expansion, to create more jobs. Because of this, if you are unemployed, it will be

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almost impossible for you to find work, and this will be especially critical for students
and for anyone who finds him or herself out of work when they are middle aged.
There is too much paperwork involved to do anything; there are too many
regulations that stifle job creation efforts. This leads to a two-tier system, usually,
with those who are already employed having a job for life, and those who do not
have a job are unable to find anything, and are forced to live on welfare. There are
too few job offers for the demand, a shortage that leads to poverty and chronic
unemployment.

This means that adding burdens to the economy will not create new jobs. It will, in
fact, make the amount of new jobs being created decrease. France has an
unemployment rate of about 9.1% and has not been able to tackle it. The British
current unemployment rate is around 7.4%. The French system therefore yields a
higher unemployment rate than the British system does, and it seems clear that the
unemployment is structural in France. Importing a system that results in higher
unemployment rates doesn’t help anybody and leads to stagnation, rather than job
creation. The Conservatives therefore reject the French system, because they believe
that working within the current framework of freedom and entrepreneurship does not
suffer from being bogged down by paperwork and consequently has a far better job
creation factor.

III.3. Skills

To be able to handle a certain job, a person needs a set number of skills. If the
person does not have the skills for a job, then he or she either gets training or he or
she is unable to get that job. When the types of jobs in a certain area change, then
people without the right skills are either able to move to a different area or they are
unable to find work. In the meantime, these new jobs are filled up with new people,
who do have the skills these require. A technology shift can lead to this sort of
unemployment, which is structural in nature.

The wrong approach to this problem would be to keep the old jobs going forever,
because that situation is unsustainable. A lot of money will be spent and the people
get to keep their jobs, but they are not given the possibility to improve their
situation. Furthermore, the British economy loses competitiveness because we will be
producing goods that consumers don’t want. Being unable to sell those goods, the
people producing them need more help from the Government; they would become
dependent on Government funds. Their freedom would be taken away from them and
the economy would stagnate. Both of these outcomes are not satisfactory and hurt
the British population.

The way to solve this issue is through training. This means a Government needs to
ensure that there are training opportunities for the people. One way is to give
incentives to companies to train their employees in-house, and a good incentive to
achieve this outcome is to make expenses with training at least partially tax
deductible. But not just for businesses. Giving people the opportunity to deduct from
their own taxes the expenses they make to improve themselves is also a simple, but
worthwhile, initiative. The effects of this policy on job creation are maximised
because businesses, not the Government, know what skills they need, and
businesses are the ones creating jobs. Naturally, the situation of those who, due to
important concerns, perhaps related to age will be taken into consideration when
drawing up the plan.

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III.4. Lack of Information

A source of unemployment that cannot be overlooked is the lack of information about


available jobs. If people don’t know that jobs are there, then they will not take them.
It is also important that, when people do know about possible employment
opportunities for them, they are able to take them. Dissemination of information is
fundamental in any market, and in the job market it is fundamental as well.

The obvious solution for this problem is to be able to bring information to the people
who need it. Job centres do that, and the more efficient they are, the more effective
they are. The Conservatives have already computerised the job centre administration
services; we now want to put computers for the unemployed to use. Full
computerisation of job centres will ensure that the information is where it is needed
and will ensure that the people who need to find it are able to find it quickly and
effectively.

IV. Create Your Own Business


One solution for unemployment is to make it easier for people to start their own
business. It is not mandatory for a person who is sacked to be put on welfare, and
nor is it compulsory that someone has to work for someone else his or her entire life.
Small businesses form an invaluable part of our economy and the Conservatives feel
that encouraging people without work to create their own jobs is a good way to
combat unemployment.

We will approach local colleges to see if they are interested in running special
business courses for people who want to create their own business and want a few
notions about management. These courses would be taught by local businessmen,
who would be paid to do so. People who take these courses get a diploma and also a
loan to create their own business. The loan is interest-free and is repaid in a flexible
way, with many options available. Applicants who do not take the course may get a
loan as well.

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V. Conclusion
"The Fight against Unemployment" is a battle that must be fought tooth-and-nail.
The plan that has been outlined is designed to tackle the most important causes of
unemployment comprehensively and thoroughly, and it will be adapted to the needs
of each region, with a priority to depressed areas where it is most needed. It is a real
plan with real, concrete proposals to tackle unemployment, and only the
Conservatives can be trusted to do just that.

This plan takes into account the needs of the people and takes into account basic
economic principles to ensure that people get what they want: a job. We give you a
free market with retraining possibilities, and an efficient way to get the information
you need about jobs. We give you the opportunity and the knowledge you need to
create your own business. We thoroughly go through the problems and present
solutions, a strategy in our fight against unemployment.

This strategy will create good jobs for Britons, and it will do so because it doesn't
over-regulate our economy, because it remains true to all the important principles
that made Britain great. Our entrepreneurial spirit and our ability to work hard set us
apart and it will ultimately be these two key attributes of the British way of life that
will solve the problem of unemployment, with an important push given by these
proposals.