ABSTRACT
The impact of the recession on workers and communities is discussed in Chapter 4 of this book. The present chapter follows up on this discussion by looking at the policy responses put in place in England to tackle the problems faced by redundant workers and their communities during the recession. While unemployment rose less than expected, given the fall in the UK gross domestic product during the recession, recent figures show that the number of people unemployed in Britain increased from 1,544,300 to 2,372,600 from April 2007/March 2008 to April 2009/March 2010; 1 that is, an additional 828,300 people in two years. Simultaneously, the number of people receiving key out of work benefits 2 increased by 744,500 people from February 2008 to February 2010; while this increase is in the majority explained by an increase in job seekers, the number of people receiving income related benefits has also risen. As discussed in Chapter 4, job losses will tend to reduce households' income and can also affect people's well-being, particularly in the first year after redundancy, when people are trying to adjust to the situation. For some people it will be the first time that they have engaged with the job search and benefits system, at a time when they will be worried about how they will cope with the financial implications of losing their job and the impact on their lives and family. The questions that arise will include: Will I lose the house? How long will it take to find another job? What help can I get to pay bills? What benefits am I entitled to? Where do I go for help? In addition, involuntary redundancy can have important scarring effects on people's careers. More widely, the influx of so many unemployed people into the labour market may make it more difficult for people to find employment due to increased competition for available jobs and the difficult economic climate. People who were already unemployed before the recession may face increased difficulties in finding work as a ripple effect, being further away from the labour market – especially in already deprived communities, as discussed in Chapters 6 and 13. Other ripple effects may include an increase in the number shops, and run-down high streets.
