New partnership aims to ensure everyone benefits from economic recovery

The “More Jobs, Better Jobs” venture is intended to bring together employers, local authorities and politicians to design and deliver new policy initiatives so poorer people are not left behind when the economy grows.

Foundation chief executive Julia Unwin said she welcomed the news that the economy was in recovery but knew from past experience that there was no guarantee everyone would benefit.

“We cannot be complacent about the impact of the economic recovery for people in poverty,” she said.

“We want to change that. A recovery that leaves poorer people and places behind is no real recovery.”

A spokeswoman said that to support the partnership, the foundation had published two new reports.

Its Cities, Growth and Poverty: evidence review – by a team at the Work Foundation, the Institute for Employment Research at the University of Warwick, and the London School of Economics - finds that economic growth does not automatically lead to poverty reduction, she said.

“The quality and quantity of new jobs created is the most important factor in decreasing poverty in cities. Increases in output and productivity have little effect on poverty reduction.

“Emphasis needs to be placed on creating new jobs for young people and people with low and intermediate skills levels.

“The report finds that the quality of jobs created is as important as the quantity – especially for people in low-paid, low-skilled work.”

She said another foundation report, Future of the UK labour market, had found that the UK had a large number of low-paid, low-skilled jobs compared to other developed countries.

“The report describes the growing problem of in-work poverty as an “inconvenient truth” for politicians.

“However, better pay is not the only labour market intervention that matters. Improved terms and conditions, job security and progression in work must also be addressed for work to act as a more reliable route out of poverty.”