U.K. unemployment highest since 30s

Press, 25 August 1976, Page 9

U.K. unemployment highest since 30s

By DAVID BARBER. NZPA staff correspondent London Britain's dole queues — already longer than at any time since the Depression of the Thirties — are still growing.

Official figures just published show that there are now more than 1.5 M unemployed, a rise of about 37000 on the July figure which was the highest in any month since the Second World War. Most of the new jobless are thought to be: school-leavers unable to find work after finishing school at the end of the summer term.

The 1.5 M figure has long been regarded by the Labour Government as a “politically sensitive” level, and observ-j era believe it will provoke a storm of protest from trade' union leaders. The trade unions have; agreed to accept strict limits' — £2.50 to £4 (about $4.50: to $7.20) a week — in wage 1 rises as their part of a

social contract” with the' Labour Government. Theyl are now prepared to accuse!

the Government of failing top ; keep its side of the bargain. I ■ i The "social contract” wasp 'struck with both sides agreeing that pegged wage , , rises coupled with moves to i : check prices was the only 'way Britain could combat j ! inflation and emerge from ; I the economic doldrums of ■ the last two years. But as part of the deal, , I Mr James Callaghan’s Gov- j ernment pledged to protect jobs and stem the rising . (flow of unemployment. j I Its efforts in this direction ( . have been “lamentably in- , adequate,” one top union ] leader said at the week-end. Mr David Basnett, general secretary of the General and Municipal Workers’ Union ' and one of the Trades Union!' Congress's chief negotiators 1 with the Government, called!' for “a complete redirection! 1 of economic policy to solver the tragic problem of unem- c ploymen t.” He demanded particular! c action to help the 250,0001 f school-leavers unable to findlt work. . < He also called for import! t controls, short-term house! s and road building projects top provide jobs, an expanded] j job-creation scheme, movesit

towards a 35-hour working week, and a reduction in overtime working. The Trades Union Congress — the equivalent of New Zealand's Federation of Labour — will hold its annual conference next month, and there are already signs that the Government will come under heavy attack because of the rising jobless figures. The Government recently announced cuts in public spending totalling 'EIOOOM (about $1800M) and one estimate has said these will mean the loss of a further 110,000 jobs. The Chancellor of the Exchequer (Mr Denis Healey) has warned that unemployment will continue to rise and living standards will keep falling unless there is a significant increase in pro-] duction. The Government’s strong-1 est defence against attack] from the unions is the! threat that if they do not! co-operate, the Government: will fall. An alternative Con-; servative Administration would undoubtedly pursue policies that could stretch the dole lines even further.