By Maeve McGoldrick
Recession is on the cards according to economists studying the latest figures on the economy. Mervyn King, the governor of the Bank of England predicted that next year would be a “difficult one” for the UK with unemployment rising at its fastest rate for 16 years. Not good news for Government reaching 80% Employment and Child Poverty Targets. Rising unemployment and inflation will ultimately equate to debt for many people trying to survive the current credit crunch. As basic groceries become more expensive and weekly incomes trickle off, people are forced to think of alternative financial sources. According to the Guardian
“The number of people claiming jobless benefits last month rose at its fastest rate since the recession of the early 1990s,” and undoubtly those that are always hardest hit, the most disadvantaged in society are forced to contact the loan shark for a quick fix, sending them further into debt and ultimately into poverty.
The BBC reported ‘About 22,000 jobs went in the construction sector while factories cut 35,000 jobs’:a market strongly dominated by disadvantaged people.
The alternative is cash in hand work. At a time when the job market is incredibly unstable and cannot guarantee financial security people do not have any choice but to accept illegal wages, irregular hours with no financial help of working tax credits. Basically people become vulnerable workers, with no rights and long hours equalising very little pay. Nevertheless, it is an essential income at a time when every penny counts. And not just for the individual or the family: it is an essential contribution to the UK economy. As cash in hand work has been estimated to account for 12.3% of the GPD, a staggering £120 billion and this too is an essential income for the UK at a time when every penny counts. As Polly Toynbee pointed out in The Guardian this week; finance, insurance and high street banks form 7.9% of the GDP, putting the size of the informal economy into perspective.
With rising unemployment levels, benefits uptake may increasingly be viewed begrudgingly by society. People trapped in poverty and working cash in hand out of need, not greed may become the targets of fustration. As the credit crunch tightens purse strings, empathy and patience may decrease as personal money worries increase. Ironically people demonised as scroungers could be the anwer to much of society’s current problems. Be it Child Poverty, unemployment levels or the credit crunch, if Government envisaged cash in hand work as a potential source of finance, harnessed it in the right direction, with the right support and encouragement they would be one big step closer to reaching targets. After all we are in this doom and gloom period together; all sharing the same concerns of bread prices and bread earners.
To hear more about the Informal Economy Campaign and how cash in hand workers can help solve society’s problems – not create them please send Maeve an email on maeve.mcgoldrick@community-links.org
