Social Audit... Research Findings - Jobs and Business

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2.4.        2.5    Jobs and Business  

The economic difficulties experienced by the South Wales Valleys since the demise of the coal industry are well known and scarcely need reiterating here. Suffice it to say that it is little surprise that the local economy and labour market featured centrally in the residents’ accounts of what was wrong in their area. For nearly three-quarters (71%) of the respondents to the questionnaire survey local employment opportunities were judged as being either “poor” or “very poor”. Equally the condition of the local labour market ranked third in respondents views about the biggest problems affecting their area (see Table 6). Data derived from the qualitative aspects of the research enables a more detailed analysis of respondents’ views about the nature of the local labour market from which three core themes emerge:

1.   Unemployment

2.   The prevalence of low skilled and low paid employment

3.   Lack of quality training programmes

 

Unemployment.   back   return to top of page

In line with national trends there has been a sustained decrease in the unemployment rate in the South Wales Valleys generally. This is reflected in data from the 2001 census which shows an unemployment rate of just 3.6% in Treorchy, a figure which is only 0.2% higher than that for England and Wales. In 1991 the census recorded an unemployment rate of  16% for the Rhondda district. However, at this stage it is difficult to establish exactly how much of the decrease in unemployment can be attributed to increased employment levels and how much can be attributed to changes in counting methods and the benefit system. In any case there was certainly a widespread view amongst respondents in this research that unemployment is a continuing problem:  

“the pits shut ......there’s been no industry here for years and years”

“one big requirement for people is work”

“job prospects are very low in Ynyswen”    

 

Moreover, there is also wider evidence to show that the benefits to be had from declining unemployment have not been evenly distributed and that unemployment continues to be concentrated within particular ‘work poor’ households (Jones & Adamson 2001).

Further evidence of this is provided by the 2001 census which found that 30% of the unemployed in the ward of Treorchy were classed as long term unemployed and that 12% had never been in employment. Certain of the respondents picked up on this theme during the qualitative interviews and expressed concern about the culturally corrosive effects of intergenerational unemployment within the same family:     

 

“there is a fear of leaving the benefit system.....we need to reintroduce the culture of work”    

 

In turn this was seen as being linked in with a wider pattern of polarisation in the local society:  

 

“there are pockets of new wealth.....in this street everybody works and crime is unheard of .... in other parts there are whole streets on benefits, there is crime, housebreaking, car thefts and litter everywhere, dog fouling ...there is no future”    

 

The same interviewee commented that whilst wages available in the local labour market acted as a push-factor to out-migration for the more mobile (whether as daily commuters or on a more permanent basis) it was a source of despair for those who remained:    

 

“there is a loss of hope ...despondency...... they see their parents in low paid employment and they see no hope”    

 

Finally, although there has undoubtedly been some net increase in employment rates in the Valleys generally this obscures a continual process of turnover in the local employment base in which particular firms shed jobs or close down even as new firms start operating in the area. The local perception is that these losses have primarily occurred in the more established (and better paying) factories, some of which have recently shed jobs or moved out of the area altogether. Examples of this included recent redundancies at the Burberrys factory and the closure of Harwins components which it was claimed had provided employment for up to ninety people. There are currently empty lots and disused premises on both the Ynyswen and Treorchy industrial estates.

 

Low Skilled and Low Paid Employment   back   return to top of page

One of the key trends identified by the PCR’s 2001 survey was the shift in emphasis in residents concern from high levels of unemployment in the 1990s to the quality of the new jobs that were coming into the Valleys  by 2001. Here there was widespread concern about the perceived lack of “good jobs”. Although issues such as skill levels and long term job security were key elements of resident’s criteria about what constituted a “good job”, the overriding concern was with net rates of pay. These findings are equally evident in this research with the two major sources of local employment (local shops and services and light manufacturing industries in factories on the Ynyswen and Treorchy industrial estates) both being criticised for rates of pay that there were set at or sometimes below the minimum wage:    

 

“A lot of what is around now is very low money....it’s only offering minimum wage. There are jobs but they are very badly paid.”

“factories around here take advantage”

“we need to attract businesses that employ people in good jobs”    

 

There was a general consensus that getting a good job meant travelling to Cardiff or even further.    

 

“there is nothing around here.....people have to work outside the area” (15 year old female, Treorchy)

“if you want good money you have to go to Cardiff” (18 year old male, Treorchy)

“my daughter is a junior school teacher...but there is no work. Professional who has to travel to Cardiff”    

 

An informal interview with a group of young school leavers amply illustrated the sorts of dilemmas that this could create. This group reported that the rates of pay on offer by a major local employer ranged from £160 per week for a 48 hour week (£100 for under 16 year olds) to £250 per week for the night shift. This is in stark contrast to the labour market which exists in Cardiff or on the M4 corridor.  Similarly another reported having earned £200 per week in Cardiff but “good money” also meant long travelling times. He claimed that his job in Cardiff entailed leaving Treorchy on the 7.00a.m train to return home again at 7.30p.m - assuming that the trains were running on time, which was by no means always the case. Whilst this individual eventually decided to give up the job in Cardiff, there were fears expressed that others simply chose to leave the area altogether. As one interviewee commented:  

 

“the educated people don’t come back .....we are losing the brightest and the best of the younger population”    

 

Lack of good quality and relevant training   back   return to top of page

An integral component of what one interviewee described as the “limited economy” which operates in the area is the perceived scarcity of good quality training programmes. Nearly four out of ten (38%) of survey respondents expressed the view that training opportunities in their area were either “poor” or “very poor”. Similarly, participants in the community visioning events routinely commented about the demise of the apprenticeship system and the opportunities to learn skilled trades.     

 

“jobs for young people leaving schools ….. there are no more apprenticeships ……this is a main consideration”    

 

As with obtaining a “good job”, the likelihood of securing a good quality training in skilled employment was believed by many to be reliant on travelling outside or leaving the area. Thus one school leaver reported applying for a four-year apprenticeship with BOSCH at the end of which he expected to be earning at least £320 per week.    

 

Conclusion 8:

The demise of the coal industry has left a continuing legacy of structural problems and weaknesses within the local economy. In the recent past these weaknesses have been manifested by high rates of unemployment. Although unemployment continues to be an issue, structural economic problems appear to be currently manifested by the prevalence of low paid employment in the local area and the lack of employment with opportunities for long term skills development.   

 

Recommendation 7:

Although the problems with the local economy are structural with origins in wider processes beyond the control of the regeneration group, there may well be instances where community regeneration can make a positive, if incremental, contribution. Where possible the regeneration group should seek to promote and develop indigenous economic growth in the local area.  

 

This could possibly take place through the development of community enterprises in some of the activities identified elsewhere in this report and by the promotion of related small businesses. Such enterprises could also include Intermediate Labour Market activities for young people. Elsewhere, Intermediate Labour Market activities have provided some solution to these problems by using locally derived employment and training structures to (re)introduce residents to the labour market. In such schemes the emphasis is on building ‘soft skills’ and confidence within ‘safe’ learning and training environments.

For example, Community Regeneration Trust North East employs local residents on a decorating team to refresh houses for new tenancies. They develop soft skills as well as decorating skills and leave the programme with a Certificate of Employability. Participants are not allowed to remain on the scheme for more than one year and are subject to standard work discipline procedures while they participate. The scheme introduces long –term unemployed people to the world of work within the safe environment of their own community. This enables an eventual transfer into the external Labour market. Similar schemes have been promoted in local building activities where local labour clauses are inserted prior to the letting of contracts. The Regeneration Group should seek to establish such principles for any work it commissions in the community and encourage the development of service level agreements with statutory services which promote local employment patterns.  

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