The high cost of keeping people out of work rather than ensuring that they are in work
Councillor Lesley Brennan
2 July 2012
Tax revenue lost to the Exchequer in income and national insurance contributions if unemployed 18-24 year olds in the East End ward were earning the median wage for full-time employment in Dundee is greater than the amount of basic Job Seekers Allowance paid to them while they remain unemployed.
Estimated figures indicate that, on present levels of unemployment, almost £900,000 is being lost in income tax and national insurance payments while around £650,000 is being paid out in basic Job Seekers Allowance amongst this group of young adults.
The East End ward incorporates Douglas, Mid Craigie, Midmill Linlathen, Craigiebank and Craigie.
The current average number of those receiving Job Seekers Allowance in the ward is 222.
The median ( middle) wage in Dundee is £454 per week.
Councillor Brennan said,
“ A generation of young adults in the city are growing up in a different work situation from their parents and grandparents whose experience of employment in the main was a full-time job.
“ Ensuring that people are in full-time work rather than out of work has both financial benefits and personal benefits.
“It provides a shot in the arm to the local economy through more spending power and it reinforces people’s dignity and self-worth.
“ Their increased spending power would help bring more demand into the local economy with a boost for growth and for job creation.”