Turns out that having a highly-skilled population doesn’t create more low-skilled jobs

Groningen University, the Netherlands. Image: Wutsje/Wikimedia Commons.

Some good news for you: a study from Groningen University has found that having a highly-skilled population does not actually create any more jobs for low-skilled workers.

Well, it does in a way: the study found that, for every 100 highly-skilled workers, a city will create 10 low-skilled jobs are created. But – here’s the kicker – those jobs aren’t being done by low-skilled workers. In cities with a highly-skilled population, low-skilled jobs are being done by students and other high-skilled workers who haven’t been able to find high-skilled jobs.

Now before you start running in circles, clutching your face and gibbering at this earth shattering news, let’s take a moment to reflect on the fact that this is one of many politicians’ favourite myths. They just love the idea that improving the skills of an area’s population will improve the economic opportunities open to everyone.

It’s an attractive notion. The problem is that, while they’re invested in this idea, most governments refuse to invest in the other systems that are needed to make it happen.

So, assuming they want to make their favourite myth a reality, how could they do so? Here are a few ideas.

More grants for higher education, graduate opportunities and an end to unpaid internships

Cities with a highly-educated population are usually student cities – and students need money. The benefit to hiring students for low-skill jobs is that they tend to require less of a commitment. They are one of the only groups of people who benefit from zero hour contracts, they don’t tend to be overly bothered about pension plans, and they usually don’t need to take time off for family emergencies or maternity/paternity leave.

These desirable traits, combined with the pressure to undertake unpaid internships, mean that, until students have financial freedom to pursue their studies they will always be prime candidates for low-skilled jobs – reducing the number available to lower-skilled workers.

Increase affordable housing

It’s not enough to provide low-income jobs: a city also has to provide access to those jobs. Lack of affordable housing is pushing low and middle-income families further away from city centres, increasing both commute times and travel costs.

The Netherlands has done a fairly decent job of providing affordable – but in London we are starting to see what happens when rich tenants are given priority over low-income families. When homeowners were evicted from the Aylesbury and New Era Estates, they were also moving away from their jobs.

By increasing commute times and restricting housing options in the city centre, low-skilled workers are forced to pay more to get to work; meanwhile, the highly-skilled workers who can still afford to live in the centre enjoy short commutes.

And on the theme of people being able to physically access these new jobs...

Prioritise public transport in deprived areas

Good public transport links increase the value of a property. This can be seen the high desirability of houses near the Brisbane ferry landings; it’s the reason that London’s house prices are generally cheaper south of the Thames, where tube coverage is so much lower; and it’s visible in the way that the West End of Newcastle is reliant on buses while the comparatively wealthy East side of the city has a magnificent Metro.

City councils tend to invest in wealthy areas of a city, leaving lower-income areas with less access to public transport and a much longer commute. This goes beyond inconveniencing a few people so that their rich neighbours can travel with ease. For many single parent families, the extra hours spent on the bus become extra money spent on childcare – a significant hindrance to women hoping to stay in the workforce. Unless people are able to access low-skilled jobs, there will be fewer candidates and a higher rate of unemployment in poorer, less accessible parts of the city.

Value and support low-skilled workers

The majority of low-skilled jobs are manual, and while they’re vital to a city they rarely have much social cache. By providing a living wage, governments can acknowledge the importance of low-skill jobs, while also finding a way to help low-skilled workers afford to travel to and live near said jobs.

It’s not enough to just invite a load of highly-skilled workers over, sit back and expect them to pour jobs and money into the local economy. Workers need to be able to live in the same city as the place they work, they need to know that they can access these jobs without paying through the nose for childcare, and they need to know they can keep these jobs instead of being passed over for someone with a BA in history. Until that happens the idea that highly-skilled workers result in more low-skilled jobs will remain an empty promise.

 
 
 
 

What’s in the government’s new rail strategy?

A train in the snow at Gidea Park station, east London, 2003. Image: Getty.

The UK government has published its new Strategic Vision for Rail, setting out policy on what the rail network should look like and how it is to be managed. 

The most eye-catching part of the announcement concerns plans to add new lines to the network. Citing the Campaign for Better Transport’s Expanding the Railways report, the vision highlights the role that new and reopened rail lines could play in expanding labour markets, supporting housing growth, tackling road congestion and other many other benefits.

Everyone loves a good reopening project and this ‘Beeching in reverse’ was eagerly seized on by the media. Strong, long-standing reopening campaigns like Ashington, Blyth and Tyne, Wisbech and Okehampton were name checked and will hopefully be among the first to benefit from the change in policy. 

We’ve long called for this change and are happy to welcome it. The trouble is, on its own this doesn’t get us very much further forward. The main things that stop even good schemes reaching fruition are still currently in place. Over-reliance on hard-pushed local authorities to shoulder risk in initial project development; lack of central government funding; and the labyrinthine, inflexible and extortionately expensive planning process all still need reform. That may be coming and we will be campaigning for another announcement – the Rail Upgrade Plan – to tackle those problems head-on. 

Reopenings were the most passenger-friendly part of the Vision announcement. But while sepia images of long closed rail lines were filling the news, the more significant element of the Strategic Vision actually concerns franchising reform – and here passenger input continues to be notable mainly by its absence. 

Whatever you think of franchising, it is clear the existing model faces major risks which will be worsened if there is a fall in passenger numbers or a slowdown in the wider economy. Our thought leadership programme recently set out new thinking involving different franchise models operating in different areas of the country.

The East-West Link: one of the proposed reopenings. Image: National Rail.

Positively, it seems we are heading in this direction. In operational terms, Chris Grayling’s long-held ambition for integrated management of tracks and trains became clearer with plans for much closer working between Network Rail and train operators. To a degree, the proof of the pudding will in the eating. Will the new arrangements mean fewer delays and better targeted investment? These things most certainly benefit passengers, but they need to be achieved by giving people a direct input into decisions that their fares increasingly pay for. 

The government also announced a consultation on splitting the Great Western franchise into two smaller and more manageable units, but the biggest test of the new set-up is likely to be with the East Coast franchise. Alongside the announcement of the Strategic Vision came confirmation that the current East Coast franchise is being cut short.

Rumours have been circulating for some time that East Coast was in trouble again after 2009’s contract default. The current franchise will now end in 2020 and be replaced with public-private affair involving Network Rail.


This new management model is an ideal opportunity to give passengers and communities more involvement in the railway. We will be pushing for these groups to be given a direct say in service and investment decisions, and not just through a one-off paper consultation.

Elsewhere in the Strategic Vision, there are warm words and repeated commitments to things that do matter to passenger. Ticketing reform, compensation, a new rail ombudsman, investment in improved disabled access and much else. This is all welcome and important, but is overshadowed by the problems facing franchising.

Stability and efficiency are vital – but so too is a model which offers deeper involvement and influence for passengers. With the building blocks of change now in place, the challenge for both the government and rail industry is to deliver such a vision. 

Andrew Allen is research & consultancy coordinator of the Campaign for Better Transport. This article was originally published on the campaign’s blog.

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