Challenges ahead in battle against poverty

Nov 12 2007 by Kevin Rowan for The Journal

YET another report last week highlighted the fact that we still face major challenges when it comes to tackling poverty in the North East.

Despite millions of pounds being invested in regeneration and economic development our region still endures many deep pockets of deprivation.

Criticism has been aimed at One NorthEast and at local councils for not doing enough to tackle poverty as part of the economic agenda for the region, but this is far from just.

There are major signs of improvement, the report ignores the fact that we have enjoyed pretty much month-on-month growth in our employment rates for more than two years – a trend that merits celebration – not criticism.

However, there are clearly challenges that we have not addressed. It is true that despite this significant employment growth we are still suffering from higher than average levels of poverty. This remains the case partly because of both the lack of quality in the employment growth we have enjoyed and because of prevailing inequality within the labour market. We are also seeing significant growth in insecure, vulnerable, low paid work.

This helps to explain the fact that the rate of our overall economic growth is slower than the growth in employment; the relative value of work is declining.

The use of temporary and agency workers by employers has doubled in the last five years. There are, of course, advantages to this type of work, individuals can use agency work as a route into employment and there are benefits to employers in coping with fluctuating demand.

But agency work is also generally associated with lower pay and much worse conditions of employment than ‘core’ staff, and employers are using this option not to plug gaps, but to minimise labour costs.

There is a direct link to quality of employment and poverty. As a direct result of inequality of employment women are much more likely to retire into pensioner poverty and black workers are much more likely to live in poverty in deprived communities. Around 20% of white workers live in relative poverty compared to nearly 70% of Pakistani and Bangladeshi workers.

Perhaps employers ought to take a share of the blame and some responsibility for the poverty? Tackling inequality and low pay, making work more accessible and resisting the temptation to increase the volume of insecure, vulnerable work – these are some of the interventions employers can use to make a difference.

Kevin Rowan

Regional Secretary,

Northern TUC.