A Study Of Unemployment And Job Seekers Allowance Economics Essay

Unemployment is at its highest degree since the economic crisis of 1929. Due to the economic crisis, many have lost their occupations and can non happen new 1s. In the European Union ( EU ) the mean unemployment rate is 9,5 % of the labour force between 16 and 64 old ages old ( EU Statistics 2011 ) . In the UK, the rate is around 8 % and in the Netherlands it is 4,4 % of the labour force ( EU statistics, 2011 ) . Al these people are registered as jobseekers in their national database. More than 90 % are lawfully in rubric of a jobseeker ‘s allowance ( EU parliament, 2010 ) .

During my exchange period, I came across many people looking for occupations that were kicking about the consequence of the authorities cuts on their allowances. Most of them were immature British citizens. The topic could be besides read about daily in the newspapers. Although there is unemployment in Holland, most jobseekers having an allowance ( JSA ) , do non kick about it. Government cuts did non use to it either.

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The intent of this essay is to compare the system of two different European states ; the UK and The Netherlands ; sing jobseeker ‘s allowance. From which conditions the jobseekers have to run into to how effectual the system really is. During the research, a jobseeker and inquiries were asked at a occupation Centre.

Main Part

Common attack

Toward my research, I found out that both states had many points in common. The chief ground therefore is that both states are members of the EU. In both states, in order to measure up for a JSA you have to be between 18 and 64 and actively seeking for work. Students or merely graduated can non use for it. In both states, work forces have to turn out that they have been looking for work.

However, there is no common European jurisprudence or policy that determine how European states should cover with jobseeker ‘s allowance ( EU committee 2010 ) . Each state can find the sum their citizens are allow excessively or the grade of control they will hold on the jobseeker.

Dutch attack

In Holland, JSA includes benefit. The establishment is called “uitkering” . It includes rent, money for food markets and money for personal usage. While JSA is merely for people out of occupations or looking for one in some states, in The Netherlands it is meant for everyone who does non hold a occupation but besides for other group of people. Anyone who has no income can use for a jobseeker allowance. That includes legalised immigrants, who have yet to incorporate and remain place female parents. Every jobseeker has besides the right to hold an professional formation while having an allowance. That formation is paid by the authorities. The sum of JSA lies between ˆ700 and ˆ900 ( ?610 – ?810 ) , depending on how big your household is. Most Dutch are happy with their JSA ( CBS, 2010 – Dutch Central Bureau of Statistic ) . From personal experience, I noticed that some Dutch people see it as a privilege and a right. There is non every bit much force per unit area on jobseeker as in other European states. They are non supervised exhaustively to do certain they are actively seeking for a occupation. In this crisis clip the authorities is be aftering of diminishing the sum given to jobseekers. Surprisingly no or small expostulations has been made about it. A recent study ( CBS, 2011 ) shows that the bulk of the state ( 72 % ) thinks that due to a deficiency of stringency, many people are having JSA without being entitle to it.

In my direct environment, most people having JSA are over 30 and are traveling to school to obtain a sheepskin. There formation will take them at least 3 old ages maximal. They are no “normal” pupils. They have been working in the past and merely lost their occupations. They need a sheepskin to happen a new calling. They find it normal the authorities is paying for their school and life disbursals but are at the same clip thankful. The jobcentre has to assist you look for a occupation. They even arrange occupation interviews with companies. If you do non happen a occupation, you will non be accountable for it, because it is the jobcentre ‘s occupation to assist you happen one. They besides work with private occupation bureaus. While having JSA, you will besides be helped to pay your debts and acquire price reduction on the bulk of your measures. This all fit in the Dutch manner of thought: “ The rich and the authorities should take attention of the hapless and the distressed.” ( Hollands gewonten, 2011 ) .

British attack

Jobseeker ‘s allowance ( JSA ) was established in the United Kingdom ( UK ) since the twentieth century. The unemployment benefit system and the Poor Law were so initiated. JSA is merely meant for jobseekers who has been working earlier. In the last twelvemonth the figure of JSA demand has quickly increase due to the unemployment. Before being accepted, jobseekers need to proof that they lost their occupation and that it was non their mistake. After you apply for JSA, you will hold to show yourself every 2 hebdomads to a Job Centre. When you present yourself, you will hold to convey with you evidences that you have been looking for a occupation via any agencies. You can besides utilize a machine at that place to happen one. While seeking for a occupation, you are non allowed to travel to school because it means that you wo n’t be available 40 hours a hebdomad. You will lose you allowance instantly. You are besides non allowed to travel on holiday. The mean sum of a JSA is ?50 a hebdomad and depends on how old you are. It gets higher when you get older. For my research, I went to a occupation Centre and interviewed a jobseeker called Edmund. Edmund is 26 old ages old and had been working in a peanut butter cloth in Manchester for about 7 old ages. He has no sheepskin and no other makings. In order to happen a occupation, Edmund wants to travel to college and survey IT. The survey will take 3 old ages to finish. During an assignment at the occupation Centre, he mentioned that he merely signed in at Manchester College. That means that would non be able to look for a full clip occupation. Edmund ‘s jobseeker allowance was stopped instantly. The jobcentre made it clear that he has to be available for at least 36 hours every hebdomad. Edmund was non able to acquire other aid because he ‘s non analyzing at an university. For jobseekers a calling alteration is about impossible. It is blocked by the many constabularies jobcentres have.

Why this difference

The difference between The Netherlands and the UK is chiefly economical. These 2 states are really different. The United Kingdom, being a large state, has a larger population. Which means that it has bigger sum to pass on JSA ‘s of its citizens. That makes it necessary to do certain that merely the one entitle to it acquire it. With a 32 % fringy revenue enhancement rate imposed on mean income workers, the UK still qualifies as a comparatively low-taxed state ( Businesspundit, 2010 ) . The Netherlands at the other custodies is a little state. Its revenue enhancements are one of the highest in Europe with a upper limit of 52 % maximal fringy revenue enhancement ( Global belongings usher, 2010 ) . The population is merely 1/4 of the UK ‘s ( statistics.gov.uk, 2010 ) . That means that the mean JSA per individual will be higher than in the UK. Economically, Holland has more to offer than the UK. Besides under the Dutch employment jurisprudence, Dutch workers as good protected. They have the right to follow a preparation in order to better or alter their calling. Meanwhile they are entitled of their JSA. With this jurisprudence protecting them, Dutch jobseekers have more than British jobseekers.

Decision

In this essay I described and commented on the manner The Netherlands and The United Kingdom trade with jobseekers and JSA. I established how much influence the economic system of a state can hold on his policies. Although the EU tries to set all European states on the same degree, many states still have different policies in many sectors. In this instance, because of the difference in the policies, citizens of one state have more chances than the other state. I found it flooring to see how limited Edmund ‘s options were. He was willing to travel back to school and do his life better. Unfortunately that was denied to him. His narrative makes me reason that it may be better to be unemployed in a higher revenue enhancement rated state in Europe than a lower taxed one. JSA ‘s comes from revenue enhancements paid by the on the job people and companies, so that support my decision. With the economic crisis, JSA ‘s are non the chief precedence of the British authorities. Cuts are being made to assist the economic system recover. Until the economic system gets better, the state of affairs of jobseekers in Britain is improbable to be improved.

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