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Updated on October 26, 2014

Social impact

Society pays a high price for high unemployment in terms of it's impact on the community.Unemployment increases crime rate ,affect the family,children and their well- being.Poverty is widespread problem in areas of high unemployment.There are studies which suggest that families with long term unemployment will continue to suffer for generations.

Those who came as self employed from Rumania and other EU countries are undergoing severe hardship when they are out of work. Those who are unemployed have extra time on their hands.Government has introduced a scheme called mandatory work activity scheme for those on job seekers allowance.

Understanding unemployment

We hear so much about unemployment but do we know the definition of unemployment.A person is classed as unemployed if not only out of work,but actively looking for work and available to take up job within a fortnight.Unemployment stand at2.49million by end of August 2013.At the same time people claiming job seekers allowance is 1.4million.This means others are not entitled or not claiming job seekers allowance.

Although the national average rate is 7.7% unemployed,figures vary from area to area.The highest of 11.4%unemployment is in Birmingham Lady wood.

Work activity scheme

This scheme ran into controversy for the following reasons:

*They work for free for companies who have signed up.

*There is not enough information about the scheme.

*Compulsory in nature.

The scheme provides,for up to 30 hours,for 4 weeks,community benefit from work placement.Businesses and charities became providers of the service.The project was intended to benefit the community in addition to the benefit of employing the individual.

The providers have to establish that the community benefits directly or indirectly by employing people under this scheme.The government has performance meetings and annual self assessment meetings to justify that tax payers money is well spent.

There are opposition groups calling for boycotting the institution who are taking part in the scheme.Those who oppose see the providers as exploiting the vulnerable. They call this forced labour and therefore illegal.Government was challenged in courts and has made amendments to stay within the legal framework.

Mandatory Work Activity

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Apprentice scheme

Apprentice scheme is in existence for a long period of time.Those under this scheme are entitled to a payment of £2.68 per hour with a minimum of 30 hours of work per week.The scheme is intended to provide training for 16-24 years old.At present it is not straight forward for small businesses to employ apprentices. Small businesses are sent from pillar to post before take on an apprentice.Some businesses give up half way through the process.Number of agencies involved are far too many for a small business to deal with.

This scheme is under review by the government to make this easily accessible for small businesses.

Small Businesses

Number of small businesses
number of employees
turn over
Source:Federation of small businesses

Training Provider

A small business will have to depend on a training provider.The training providers need to be passionate about the requirement and have to provide training in line with the work experience.They use off the shelf training programme instead of tailor made programme.

Some training providers who are willing to provide the required are far away from the employers location.

Unemployment Benefits

Job seekers allowance are paid to those who are actively seeking for work and employment and support allowance for those who are ill.There are various other benefits. People who are working moan about those receiving benefits including the government.Those claiming benefit are not entirely at fault.Currently hundreds of people have to fight for one job.Every job advertised ask for experience.

Under these circumstances people who are unemployed have no option other than to make their rightful claim.


Unemployed always look with suspicion at the businesses who come forward to employ,take on as apprentice or to take them on work activity programme.There are businesses,charities and social enterprises who genuinely want help others who need help.

Active Participation

Those who are on benefit can gain respectability by taking part in voluntary sector at their own will without government intervention.Voluntary sector contribute over 11 Billion pounds to the economy annually.There are number of charities who are always looking for volunteers.

There are number of disadvantaged such as homeless,elderly and the disabled.

Gambling in poor areas.

There are more betting shops in poor areas than in rich areas.There are 82 betting shops in Newham council area.More than 5 billion was gambled in last year in areas with high unemployment compared to 1.5billion in rich areas during the same period according to guardian.Gambling industry dispute these figures .

According to guardian 50 constituencies in high unemployment areas have 1251 betting shops compared to 287 betting shops in 50 constituencies in areas with low unemployment according to guardian.

Each of these betting shops has 4 high speed,high stake gaming machines where £100 pounds stake can be lost within a minute on roulette.

These gambling machines are smashed constantly by punters who lose whatever money they have in an attempt to make a profit.

Contracted hours

Even when the economy is growing,unemployment is falling,employed are not better off.Employees are either on 0hour contract or on contracted hours where the employer dictate the terms.If you are on 30 hour contracted hours at say £7.50 per hour and work 60 hours a week,the 2nd 30 hours are paid at minimum wage.


Unemployed need the support from every fabric of the community and not condemnation.The religious organisations .the businesses,government and the society in general should make every effort to educate.assist and sympathise with the underprivileged in our community.

There are bad apples in every walks of life.Guiding these people in the right direction may yield the right result.


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