New Labours inheritance Falling unemployment and increasing benefit dependency

2 New Labour s inheritance Falling unemployment and increasing benefit dependency 

Economic activity rates were static and had fallen for older men. Many of those who lost jobs in the waves of restructuring that took place in manufacturing and other sectors moved on to sickness and disability benefits, contributing to what was described as hidden unemployment (Alcock et al. 2003). A number of push and pull factors were identified. Push factors included the collapse in demand for unskilled labour, the role of the activation regime and the relative laxity of medical and eligibility tests. Pull factors included the relative generosity of invalidity compared with unemployment benefits (Clasen et al. 2004). Other factors were also at work, especially an increase in qualifying mental health conditions. 

What was common to both those claiming lone parent and disability benefits was that while the flow into these benefits was relatively steady, the average duration of such benefit claims increased. There were no work requirements for those on inactive benefits and most who claimed them had little contact with employment-related services. 

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