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17 Mar
Question
Unemployment Trends

The question session on unemployment trends in the UK explored key issues surrounding unemployment levels, regional disparities, and efforts to stimulate job growth.

Main Debate Points:

  1. Current Unemployment Situation:
    • Official unemployment sits at 4.4%. Historical comparisons were drawn to 1984's rate of 11.9%.
    • Speaker highlighted hidden unemployment, emphasizing on health-related absences and regional economic challenges.
  1. Government Initiatives:
    • Introduction of a new jobs and careers service under the "Get Britain Working" reforms to tailor employment support locally.
4.4%

Current unemployment rate as of the debate date.

  1. Criticism of National Insurance Rise:
    • Concerns raised about the impending national insurance rise, argued to be negatively affecting employment rates even before its implementation.
  1. Vacancies and Jobcentre Reform:
    • Striving for a tailored approach to jobcentre support to better align with employer needs, addressing existing vacancies to help young people kickstart their careers.
  1. Support for Disabled Workers:
    • Emphasis was made on needing investment for benefit-dependent individuals, especially those with disabilities, to aid their return to work.
11.9%

Unemployment rate in June 1984.

Outcome: The session underscored bipartisan consensus on the potential within each citizen and the necessity of reforming employment services to bridge gaps in addressing unemployment effectively and innovatively.

Statistics:

  • 4.4% Unemployment Rate: A notable decrease from the 1984 figure of 11.9%.
  • 3 Million Off Sick: A figure highlighting the enduring impact of past policies.
  • 500 Increase in Claimant Count: Specific to Basildon and Billericay, highlighting local impact.
  • 100 Youth Unemployment: Specific increase in numbers under 25, emphasizing concerns over youth employment.

New Initiatives/Commitments Obtained:

  • Commitment to a new locally tailored jobs and careers service.
  • An employer strategy aimed at aligning jobcentre services with business needs for better employment outcomes.
Nearly 3 million

People off sick, highlighting hidden unemployment.

500

Increase in claimant count in Basildon and Billericay.

100

Increase in youth unemployment within the locality.

Outcome

There was a clear acknowledgment of the hidden unemployment issue created by historical policies, paired with a genuine willingness across parties to introduce reformative measures that could better the situation. Critics, however, stressed the potential negative impacts of fiscal policies like the national insurance rise.

Key Contributions

Mr Richard Holden
Conservative

Raised issues of hidden unemployment due to health-related absences with impacts on communities forcing relocations for job opportunities.

Alison McGovern

Outlined reform plans to tailor jobcentre support aligning with employer needs emphasizing on existing vacancy utilization for youth.

Neil Duncan-Jordan
Labour

Questioned the impact of benefit adjustments on disabled individuals seeking employment, emphasizing the need for more investment to support them back into work.

Original Transcript
Mr Richard Holden
Basildon and Billericay
Con
Question
UIN: 903203

10. What assessment she has made of recent trends in levels of unemployment.

The Minister for Employment
Alison McGovern
15:04

Official unemployment currently sits at 4.4%, which is clearly much lower than the historic high of 11.9% in June 1984.

However, today’s official unemployment level masks the legacy of the Conservatives’ recent period in office, which saw the number of people off sick rise to nearly 3 million, concentrated in places with employment rates well below the national average, creating a vicious circle where people are forced to leave the place they love for the chance of a career, and where those who are left do worse and worse.

That is why, as part of our “Get Britain Working” reforms, we are building a new jobs and careers service that will be locally tailored and will help everyone find access to support to get a good, meaningful job and to progress in work.

Mr Holden
15:04

Compared with this time last year, almost 500 more people are on the claimant count in Basildon and Billericay. Almost 100 of those are under 25. How many more will have to be made unemployed before Labour Ministers listen to charities, GPs, supermarkets, manufacturers and care providers?

They visited me in my constituency and said that Labour needs to think again about its catastrophic national insurance rise which, before it even hits in April, is already costing the jobs of my constituents.

Alison McGovern

We have a significant reform plan to make sure that we tailor jobcentre support towards the needs of employers, because there is still a significant number of vacancies out there that young people should be making the most of to start their career and progress in life.

That is why we have a new employer strategy, so that the Department for Work and Pensions can serve businesses properly.

Neil Duncan-Jordan
Poole
Lab
15:09

Disabled people often face additional barriers when trying to get back into work. Does the Minister acknowledge that rather than freezing or cutting their benefits, we will need to invest in those people to help them back into work and to sustain them there?

Alison McGovern

Yes, I do agree. We see potential in every single person in the country, and many of those who have been written off and left on the scrapheap deserve a much better pathway back into work.

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All content derived from official parliamentary records