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| Under the Tories monetarist policies, employment was left to the vagaries of the market. In 2 recessions unemployment rose to much the highest levels seen since the war and, though the system for counting it was changed 30 times, it was still at a historically high level when they lost office. Employment levels were also high then, however, though many of the new jobs were temporary or part-time. Foreign companies brought jobs to Britain because wages, taxes and social costs were low and unions weak, but it was also cheap to sack labour. | ||||
| Labour policy was: | ||||
| 1 | A return to full employment using Keynesian principles to stimulate demand | |||
| 2 | To rebuild Britain's manufacturing base | |||
| 3 | To use internationally agreed (ILO) methods to measure unemployment | |||
| 4 | To end the reliance on undercutting other countries in the labour market | |||
| 5 | To use education and training to attract high quality jobs | |||
| In fact under New Labour: | ||||
| 1 | Numbers employed rose before the recession, but by continued reliance on the market, while proposals for EU job-creation programmes were vetoed | |||
| 2 | More than a million more manufacturing jobs were lost after 1997 | |||
| 3 | The ILO system was not introduced though some changes were made | |||
| 4 | Attempts, e.g. by the EU, to get a level playing field were resisted | |||
| 5 | The high quality job route remained government policy, but most new employment was low-paid and unskilled | |||
| In addition: | ||||
| Even the doctored unemployment count remained at levels double those usual from 1940 to 1975 | ||||
| A pledge to axe 104,000 civil service jobs was presented as good news | ||||
| New Labour was a proud advocate of the flexible labour market introduced by the Tories | ||||
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Unemployment rose steeply during the recession, but financial measures taken limited the rise |
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