Speeches, etc.

Margaret Thatcher

Letter to Ian Wrigglesworth MP (unemployment)

Document type: Speeches, interviews, etc.
Venue: No.10 Downing Street
Source: Thatcher Archive
Editorial comments:
Importance ranking: Minor
Word count: 892

Dear Mr Wrigglesworth.

Thank you for your letter of 27 November enclosing correspondence from a number of people in and around the Teesside area describing the problems unemployment has brought to them and their families.

The Government is very conscious of the distress that lies behind the unemployment figures and we have every sympathy with those who are having to cope in very difficult circumstances. If there was an instant solution that would provide lasting jobs we would use it. Past experience, however, has proved that increasing public spending to subsidise jobs, encourage investment and protect failing industries has to be more than paid for in the long run by the damaging and widespread effects of rising inflation on the economy and thus on employment. If we are to find a lasting solution to the problems of unemployment, we must not give way to the fallacy that governments can produce jobs at will without any regard to the cost. Only by curbing inflation and reducing public spending will we establish the conditions which will give our industries the incentive to restore their competitive position and encourage an atmosphere in which enterprise and initiative will prosper and real jobs will be created. Your correspondents agree that the answer to their problems is a supply of new permanent jobs. [end p1]

We are taking action to expand the programme of special employment and training measures which concentrates help on vulnerable groups such as school leavers and unemployed young people. Some of the letters complain about our efforts on behalf of these youngsters and allege that the Youth Opportunities Programme (YOP) is being used as a substitute for normal recruitment. I must say that this is certainly not the intention and strict criteria have been built into the operation of the programme to guard against schemes being abused in this way.

In the northern region, which covers the north east of England and Cumbria, the programme is providing some very valuable help. For instance between the beginning of April and the end of October some 25,000 young people joined YOP schemes and around 2,350 adults joined Special Temporary Employment Programme (STEP) schemes for the longer-term unemployed. At the moment, there are about 1,000 young people at Community Industry Units, nearly 4,000 are being assisted under the Job Release Scheme and over 8,500 jobs are covered by the Temporary Short-Time Working Compensation Scheme. All that is, of course, in addition to the considerable regional assistance directed at the area through the Industry Act to help expansions and new developments. Since May 1979, over £160 million has been given in Regional Development Grants and £60 million in section 7 and 8 assistance. Some 197 factory units, too, have been built in the area and finance made available to the shipyards through the Shipbuilding Intervention Fund to help them win orders.

Though there are a depressing number of redundancies, there is some brighter news too. British Nuclear Fuels in Cumbria have announced developments which will mean 500 new jobs over the next three years, Findus near Newcastle will also provide 500 jobs over the next three years, and Carreras Rothman at Spennymoor will provide 300 jobs over the next two years. [end p2]

We have all heard a great deal recently about the need to follow the jobs and the consequent difficulties of taking work away from home. Indeed some of your correspondents describe their personal experience of these problems. I fully realise that it is not easy to cope with separation when the family does not move, or family resettlement for those who decide that a fresh start in a new area is a possibility for them. We cannot, of course, decide for others what is best for them but we can and do provide financial assistance through the Employment Transfer Scheme to those wanting to move. Since the beginning of the year more than 600 from the North East have been given help to resettle in other areas.

There has been a lot of talk too about the introduction of worksharing methods to provide more jobs and so reduce unemployment. Some specific methods, such as enforced early retirement and restrictions of the employment of married women, are mentioned in the letters. I can understand the feeling behind these suggestions but I cannot accept that it is right that any adult should be disqualified from taking work which may be available because of their age, sex or marital status.

Unfortunately, evidence suggests that measures to spread the same amount of work among more people may have only a very marginal effect on employment, while the cost of their introduction would often be cripplingly high. In fact, worksharing is often likely to raise costs, damage competitiveness and increase unemployment. No doubt there are cases where changes would increase both efficiency and fair allocation of work, but for the Government to impose conditions on working time in this way, would be to impose an arbitrary bureaucratic judgment in an area which has rightly and traditionally been a matter for negotiation between employer and employees. [end p3]

Finally, may I say that I have read all the letters you enclosed, and that I fully understand the worries. I cannot and will not give you, or then, false hopes. But by persisting in the difficult but essential task of reducing inflation, in which we are already showing signs of success, we are determined to restore health to the economy to provide the jobs needed to get them back to work. Nothing your correspondents have said has suggested any easier or better way to achieve what we all want.

Yours sincerely

Margaret Thatcher