Unemployment

By Jude Smith

In March European unemployment figures reached 20 million. That’s a rate of about 8%: figures which are hard to comprehend as they don’t wholly equate to what is going on around us. Despite hopeful thoughts that the economy is showing signs of recovery unemployment is set to get worse.

Joerg Angele, an economist at Bayerishce Landesbank, said to the BBC:

"In 2010, the rate will get much higher, perhaps 10%, 13% because the plunge in production is so massive, firms will fire a lot of people."

This little sentence in many ways sums up the problem. Unemployment is set to stay, to get worse, and to effect the whole of Europe.

What are its causes?

There are simply redundancies from firms which have gone bust. Woolworths, Zavvi, and others have contributed to the rise in UK unemployment which now means 10 people are looking for every one job available. Add to that the numbers of people being laid off in order to preserve companies long term futures (Swindon and Honda, Sunderland and Nissan are just a couple of examples).

These job cuts in turn contribute more to economic uncertainty: look at ads for large goods in the newspapers. Many car firms are offering redundancy cover with their car packages. In a downturn people buy less (particularly large items) as they are aware that they need to keep some money aside for if the worst happens. This is all very sensible but doesn’t help to re-energise the slowing wheels of the UK economy.

As spending caution grows, people spend less, companies that make or sell goods have to cut back, more jobs go, people spend less, companies cut back, more jobs go. And so the cycle continues.

Thus far the cuts are only in the private sector, but in two to three years it is very likely that they will spread. As government pays out more in jobseeker benefits and receives less in taxation (and bolsters the arrogant few but that’s another story!), there will have to be cuts down the line. Funding to schools and healthcare will inevitably be hit, leading to a second wave of job losses in the public sector.

In short, higher unemployment is here for a while.

How Can Churches Help?

Bizarrely, giving to churches has gone up in the early stages of this recession. That may be a false dawn, but it may also be an opportunity for churches to be a wonderful community resource.

Below are some ideas of how to help:

Justice

In a recession there is always a temptation for the market to reduce labour costs. This is the first time the UK has had a minimum wage during a recession and it will be interesting to see what happens. These are often times when working people are at risk of poor treatment. In a supply and demand market, when there is little demand the employer has a lot of power. Perhaps the church needs to maintain a position in defence of the worker.

In a Europe where workers may travel, race tensions can be aggravated at times of recession. The notion of ‘taking our jobs’ might prevail in some communities. The church needs to work out where it stands on welcoming the stranger, looking after the alien.

God of the downtrodden,
Defender of the weak,
Upholder of the poor
Help us God.
We ask for justice in the case of the unemployed.
We ask for mercy for the systematic injustice in our nation.
Tonight be with the man without a job,
Tonight be with the woman made redundant.
Bring hope, hope-giving God.
Amen

Practical Help

Churches are immense people resources. They will have folk who can advise, coach and generally help people to do well in job interviews and so on. Maybe this could be a service for the community, not just for the existing church members. Helping people to rearrange their finances is also an important service that church members can provide.

Isaiah prayed:
'Here I am Lord, send me!'
We pray that same prayer tonight.
Give us creativity and boldness,
Give us insight and wisdom,
Most of all give us an obedient heart.
So we might act.
Amen

Hospitality

People will find themselves having to move more in order to get work. The church can be welcomers, networkers and senders: making sure people are well connected wherever they end up.

Open up the doors of our homes
Open up the doors of our churches
Open up the doors of our hearts.
We invite you in King of Glory.
And in in your name we invite our neighbours...
Make us welcomers
Make us networkers
Make us senders
So we may help those in need.
Amen

Job creation

Churches might want to consider getting involved in local job creation, through working with social enterprises and so on.

God, what can I do ?
20 million in need in this continent
20 million unemployed
We offer ourselves, our churches, our businesses, our ideas, our lives.
Use us God.
In Jesus' name.
Amen

Andy Freeman, 28/05/2009