Labour social reforms 1945-51 - Unemployment

2. Nationalisation
The government believed
that the country – not private
companies - should control
important industries such as
coal mining, steel works and
the rail network.
As such Labour took control
of these industries at different
times e.g. coal, 1947.

3. Nationalisation
Nationalisations included:
• Bank of England, 1946
• Electricity, 1947
• National Coal Board, 1947
• Railways, 1948
Owners/shareholders were
compensated for their losses.

4. Nationalisation
Once the government owned
these industries they could
use tax money to keep
unprofitable businesses
going (which stopped
unemployment rising).
Apprentice numbers could
be high too. This helped
tackle idleness.

5. Nationalisation
The cost of nationalising
industries was very high,
which reduced money to
spend on other issues.
It cost around £164 million
to compensate 850
colliery (mine) owners for
the loss of their business.

6. Working conditions
Labour tried improve
working conditions. For
example, paid holidays
were introduced in the
coal industry.
The 1947 Dock Labour
Scheme tried to end the
temporary dock work.

7. Better working
conditions
Many workers found that
they had higher wages and
better working conditions.
This meant people could be
more attracted to work in
difficult jobs, which could
help reduce unemployment.

8. Better working
conditions
However most of these
changes benefitted people
that were already in work,
and did little to create
more jobs.
In fact, some argue it put
firms off hiring extra staff
as it was more expensive.

9. Unemployment
Labour’s house and school
building programme also
helped tackle unemployment.
Building jobs – and allied trades
– were created all across the
country, whether to build new
towns or homes in established
towns and cities.

10. Unemployment
The unemployment rate
was generally low under
Labour – only around 3%.
However much of this was
because of the jobs created
by private companies, or
US loans, rather than
Labour’s policies.

11. * LINKS *
Improving people’s health
through the NHS helped
ensure that sick people
could more quickly get
better and back to work.
The creation of jobs also
reduced poverty by giving
more people an income.