After last week’s budget, we now get the government’s equally uninspiring ‘industrial strategy’. Based on proposals published in January of this year, the 250 page Building a Britain fit for the future claims to provide ‘a new approach to how government and business can work together’.
Nothing could be further from the truth. It’s more about the continued endorsement of free market economics and the success of ‘flexible’ labour – the reason why industrial strategies were no longer considered necessary. This is combined with a few proposals to bump up investment in ‘cutting edge’ industries which already do relatively well, in areas already prosperous – for example, the Oxford/Cambridge/Milton Keynes triangle.
While paying lip service to the importance of a few Northern ‘core cities’, the White Paper ignores most of the areas that are in terminal decline, because of historical neglect and lack of investment. It offers little to the millions of people in insecure and poorly paid employment at the lower end of the service sector.
In promising a ‘world class’ technical education, the White Paper is reaffirming existing commitments to introducing Tech-level qualifications as alternatives to A-levels – but these are as unlikely to be anymore successful than previous similar initiatives because they are not linked to an employment plan for young people.
May’s proposals are far removed from the approach of the economies they hopes to emulate – Germany and some of the Pacific Rim countries which have pursued much higher levels of state intervention and spent far greater sums of money (and in the case of Germany, enjoy much greater degrees of collaboration between state, employers and trade unions).
Labour’s alternative proposals for a National Investment Bank, increased borrowing for investment in manufacturing and nationalising parts of the infrastructure are much better, yet rather than pretending that after years of decline, industry can be restored; and then trying to copy the uncopiable, surely time could be better spent developing a POST-INDUSTRIAL strategy with at least some of the following objectives?
1)A much larger role for the state in running the economy – combined with decentralised regional strategies, accountable to local people. A planned introduction of automation.
2)Ditching fiscal orthodoxy – introducing the ‘People’s Quantitative Easing’, originally promoted by Labour, where new money is directed to socially useful projects rather than into the banking system.
3)Massive public expenditure on housing, social care and energy conservation.
4)Education for self-development and social responsibility, rather than just ‘skills’.
5)Ending dependency on low-paid service sector employment. Bringing in a Universal Basic Income in addition to existing benefits, not instead of them.
With young voters flocking to Jeremy Corbyn’s Labour in the last General Election https://education-economy-society.com/2017/06/20/young-voters-flock-to-labour/ you’d think the Tories would have wanted to use this week’s budget as an opportunity to win back some lost ground.
But, as one disaster follows another, May and Hammond are just as desperate to shore up their existing support and so, unless you are London based, in a ‘career’ job and with parents able to stump up a large slice of a deposit (by itself, the change to stamp duty does nothing to improve a person’s ability to save) for a bargain £300 000 first-time buy, there’s nothing that can remotely help you refill the fridge, never mind pay off the overdraft.
The £350 increase in the level we now start paying income tax – worth about £70 a year, will certainly exempt a fair few from tax altogether, yet if full-time students in part-time jobs are excluded, only half of 18-24-year olds are in the labour market.
By comparison, there’s been a £1350 increase in the 40% income tax ceiling (it’s now £46,350). There’s no further moves on student tuition fees (May has previously announced an increase in the repayment threshold and Parliament voted down new fee increases) and no direct reference to the need to rescue apprenticeships. https://radicaledbks.files.wordpress.com/2013/09/a-great-training-robbery1.pdf
While recent developments have shown that increasing spending on education and training won’t necessarily lead to better employment outcomes; some schools will welcome the increased financial incentives for increasing the number of students taking Maths beyond GCSE. But even here, the amount is modest (£600 a student) and many employer representatives now argue that it would be better to have a broader post-16 curriculum rather than the current specialist one.
Young people have been affected the most from the fall in living standards since the economic downturn http://www.if.org.uk/2013/06/21/new-evidence-shows-young-adults-have-suffered-most-from-the-recession/ and approaching a third are estimated to be living in poverty. Labour will want to put their interests at the top of its agenda.
At last! Sanity emerges on the British Left !!
‘Now that socialism is re-emerging as a political force that can no longer be ignored or ridiculed, the struggle for more time for leisure, family and relaxation should be linked to broader fights. Increased public ownership of the economy should be structured to create more worker self-management and control. If technology means a further reduction in secure work, a universal basic income – a basic stipend paid to all citizens as a right – may become ever more salient’
Today’s ONS Labour Market Bulletin, provides further data about the changing relationship between young people, education and employment. Even if it’s still much higher than for other age groups, youth unemployment continues to fall. For July to September 2017, joblessness for 16 to 24 year olds was 11.9% ( down from 13.1% a year earlier and close to the lowest ever recorded). The data also shows that over a third of those classified as unemployed are full-time students looking for part time work.
There’s been a 42 000 increase in the number of young people dropping out of the labour market in the last 3 months – but the number in full-time education has increased by another 20 000, a continuation of a long term trend. Between March to May 1992 and July to September 2017 the proportion of people aged from 16 to 24 who were in full-time education increased substantially from 26.2% to 44.3%. Since 2007, numbers of 18-24 year olds in full-time learning have gone up from 27% to 33%. Though there has been a 270 000 increase in the size of the total labour force in the last 12 months – employment among 18-24 year olds (including students) has fallen.
An increase in the number of young people in FT education is generally considered to be a good thing, representing an increase in the nation’s stock of ‘human capital’: but it’s also a reflection of how many traditional employment opportunities have disappeared and how apprenticeships have not provided a satisfactory alternative. A more ‘highly qualified’ society doesn’t always lead to a more productive one.
Official figures show a 2.7% decline in apprenticeship starts for the period August 2015-2106 compared to the previous year. It’s the fall in participation rates for those under 19 (7%) that is most significant. The number of 19-24-year-old starts have also fallen, while the number of adult starts is narrowly up.
More specifically, the number of under 19-year olds starting Intermediate Level (GCSE equivalent) apprenticeships rather than continue with full-time school or college course is nearly 10% down, no doubt reflecting the low value of these schemes – many not leading to permanent employment or progression to Advanced level, but also the fact that most young people have already reached GCSE standard at school.
The number of Higher Level apprenticeship starts is up significantly – to over 36 000, but Higher Level starts still make up less than 8% of total apprenticeships and at a time when university is more popular than ever, only around 10 000 of those starting a Higher-Level apprenticeship are below 24.
This last year has seen the introduction of an employer levy and it’s too early to assess the success of this controversial scheme. But it’s possible that apprenticeships are now past their sell by date and the government is looking to new T-levels to mop up those young people not planning on, or not able to afford university? Though the first T-levels (full-time college courses) are not planned to start until 2020.
Patrick Ainley and Martin Allen (in the next edition of Post-16 Educator)
Labour’s pedagogic project
Like other social democratic parties, Labour was established in opposition to revolutionary communist parties. Backed by the trades unions seeking a better deal for their members, it sought to reform society in the interests of working people through governments that socialised the means of production and exchange to gradually and legally expropriate the employing class.
This Parliamentary Socialism was neither revolutionary nor necessarily socialist since it did not give workers control. Instead, it relied upon an alliance across the then-main division of knowledge and labour in the employed population by which middle-class professionals administered the expanding welfare state introduced after 1945 on behalf of the industrial manually working class. The administration of state education, for instance, was largely delegated to Local Education Authorities and the content of the curriculum and its delivery left to teachers.
For nearly 30 years after 1945, the reconstruction of the economy, using Keynesian demand management and subsidised by the remnants of Empire, enabled virtually full employment with progressive taxation to finance the introduction of the Welfare State. With economic growth the expansion of white-collar, managerial and professional employment allowed limited absolute upward social mobility from the largely skilled sections of the traditional manual working class; first through the grammar schools introduced in 1944 and then the comprehensives from 1965, augmented by expanded further, higher and adult education.
Comprehensive reform was structural rather than curricular, leaving the new schools in academic competition with remaining grammars and private schools, the latter linked by the exam boards to the antique universities. Academic education remained dominant as successive governments failed to establish technical training comparable with other European countries, notably Germany. Compared to its competitors, Britain’s apprenticeship system, though extensive, remained both ad hoc and inferior.
Education assumed a new significance for Labour at the end of the long boom. James Callaghan’s 1976 ‘Ruskin Speech’ called for greater accountability and more emphasis on ‘vocational skills’. Meanwhile youth training schemes were hastily cobbled together to mop up rising youth unemployment – the school-leaving age already raised to 16 in 1972/3. Yet, further and then higher education continued to expand with Labour’s 1965-92 polytechnic experiment doubling the number of HE students.
Young women particularly progressed from school and college to gain higher qualifications, whilst many young men joined a resurrected reserve army of the permanently unemployed. This reflected further erosion of the manual-mental divide amongst employees as new technology was applied to increasingly automate and deskill industry, at the same time generalising office and service work.
Simultaneously, as nationalised industries were privatised and state spending on services rolled back by the Thatcher government, a New-Market State was improvised in which responsibility for delivery contracts out whilst power contracts to the centre. This was also a new form of the mixed economy now indiscriminately mingling the previously distinct and mutually sustaining public and private sectors of post-war corporatism. This will not easily be reversed since control over the national economy has been ceded to global capital, to which the now largely service-based and financialized UK plc remains indebted.
Education without jobs
New Labour attempted to accommodate the national to the global economy, obscuring the abandonment of gradual social democratic reform by espousing ‘modernisation’. This meant adopting Thatcherism but with some redistribution. Much of this redistribution was funded on debt, both personal (as with university fees) and institutional, for example through private-public partnerships. So, when the bubble burst in 2008, there was nowhere for New Labour to go.
Nevertheless, investment in ‘human capital’ continues to substitute for economic investment in desperate hopes that more ‘skills’ (actually qualifications) will somehow produce jobs and advance individual careers, despite general downward social mobility replacing the previous limited upward social mobility. Meanwhile, the reserve army of labour has again been recast – from permanently unemployed into low wage, precarious employment.
New middle-working class youth, desperate for secure semi-professional employment, pay tripled uni’ fees to run up a down-escalator of devaluing qualifications. They are spurred on by top-down policies for ‘raising standards’ in schools, supposedly creating equal opportunities to be unequal. This has significantly altered the culture of primary and secondary schooling, even before austerity ransacked school services, whilst Further and Adult Education faces potential collapse and several universities near bankruptcy.
The May government, supported by financial and largely US-based capital against pro-European remnants of UK’s productive capital, now seeks to institutionalise this race to the bottom with its Brexit strategy. This is another desperate move towards a third new form of the state that can be called the Consolidation State, since it would consolidate debt through continuing austerity, accompanied by the privatisation of remaining services, reducing those who can’t pay for them to penury.
Back to 1945?
In reaction to this austerity and against ferocious resistance within his own party, Jeremy Corbyn has restored Labour’s electoral chances – and in a ‘progressive alliance’ with Nationalist parties and Greens may well have been in government! Evoking the spirit of the 1944 Act and the comprehensive reforms that followed, Corbyn’s Labour has promised a ‘cradle to grave’ National Education Service. More specifically, the 2017 manifesto presented policies for reversing spending cuts, improving pay for teachers and other education workers by ending the cap on public sector pay, restoring accountability and encouraging co-operation rather than competition between schools, a major review of primary school assessment, better technical education and apprenticeships and, perhaps, most notable of all, the ending of university tuition fees.
Nobody would dispute the significance of these commitments but 2017 is not 1945. However, Labour thinking on education assumes that education reform takes place against a background of an expanding economy, rather than a declining one; also, one that requires a more highly skilled and highly educated workforce. Another variant of this is that improvements in education help grow the economy which then contributes to upward social mobility seen as ‘social justice’.
This ignores the fact that in the polarised and redivided labour market sketched above, the only social mobility is downward. Labour does not recognise the changed occupational structure following the latest applications of new technology in employment – the Manifesto brushes away any possibility that robotics and AI may worsen employment prospects. Instead, following repeated failed efforts to modernise apprenticeships, it joins the cross-party and professional consensus on ‘rebuilding the vocational route’ along the lines suggested in the Sainsbury Review, not understanding that Cameron’s promised three million apprenticeships are mostly low-grade, low-skilled, and temporary placements in low-value service sectors because there is insufficient demand from employers for anything else.
Therefore, far from being caused by easier exams, or being the result of deliberately dumbing down standards, the increased level of performance (Gove’s ‘grade inflation’) follows from teachers at all levels teaching a competence curriculum to young people who study harder but learn less. More jobs demand degrees but more graduates end up ‘overqualified but underemployed’, pushing those without degrees further down the jobs queue.
As globalisation stutters, Jeremy Corbyn and John McDonnell have countered with an economic strategy based on intervention rather than the free market. Whether, without an international stimulus, this can ‘take back control’ to more than temporarily delay the changes in employment outlined above is doubtful. This threatens a prolonged crisis of legitimacy for education and for Labour. Failure to confront it will lead to disillusion amongst the student and various other young and service-sector unionised enthusiasts who with many others coalesced around the Party in June 2017 in hopes of ending austerity.