What are we willing to sacrifice for jobs and growth?

Tomorrow [Wednesday, November 26], the European Commission will present its ‘Investment Plan for Growth and Jobs’. In advance of this, let’s examine the current situation of jobs & growth in the United Kingdom; an example that should serve as a warning to EU decision-makers.

UK growth was recorded at 3% in the third-quarter of 2014, and unemployment levels decreased to 7.6%, demonstrating that both jobs and growth are on the incline. Despite this, the latest figures from Eurostat reveal that UK citizens are more likely to experience poverty than the average EU citizen. Employment may have increased in the UK, but we are seeing growing number of ‘working poor’ through the spread of zero-hour contracts, part time jobs and the situation of self-employed people who do not receive enough contracts to make an adequate income. This kind of growth also impoverishes the state; with very low salaries, the state collects far less income tax, a reduction of 0.4% in the UK compared to last year (a sobering contradiction to the forecasted 5.8% increase). Paradoxically, the budget deficit from April-October 2014 was £64.1bn, an increase of £3.7bn compared to the same period in 2013, whereas the whole narrative of the growth and job agenda assumes that the deficit should be reduced.

This example should be a source of concern for us all, and must be taken into account by the European Commission when designing its ‘Investment Plan for Growth and Jobs’.

At the Convention of the European Platform Against Poverty last week [November 20-21], Marianne Thyssen, European Commissioner for Employment, Social Affairs, Skills and Labour Mobility, highlighted that the main objective of the new Commission is job creation. That triggered the reaction of our President Heather Roy, who warned that with in-work poverty rising in Europe, the Commission’s tunnel-vision on the creation of jobs will lead to the impression that any job is better than no job at all.

At this point, you may be wondering: “What does Social Platform propose to do instead?”

Make no mistake – we too want to see job creation. However, we believe that these jobs must be quality and accessible; too often we get trapped in precarious and low paid jobs with no way out.

Then we must accept that employment alone cannot eradicate poverty, especially when measures to prevent and tackle in-work poverty are not incorporated in employment policy. The EU and its member states also need to ensure investment in ambitious and integrated social policies that enable people to not just survive, but to live in dignity and participate in society throughout their lives.

To what extent are we willing to impoverish our people and our states in the name of ‘competitiveness’, a key aim of the Commission’s current jobs and growth agenda?

The example of the UK tells us something: as well as the current jobs and growth agenda not working for people, it is also self-defeating for our decision makers. I am of the opinion that there are social standards we should never go below. I hope that the Commission agrees.

Let’s engage!

Pierre Baussand, Director