(1 day, 14 hours ago)
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Lord Hunt of Wirral
To ask His Majesty’s Government what assessment they have made of the jobs market in the United Kingdom, and of the implications for the economy.
The Minister of State, Department for Work and Pensions (Baroness Sherlock) (Lab)
My Lords, economic growth remains this Government’s No. 1 mission and boosting labour market participation is central to achieving this. The UK jobs market continues to show resilience, with high employment and falling inactivity. However, there is more to do, which is why we are continuing with our Get Britain Working strategy to drive forward the biggest reforms to employment support in a generation.
Lord Hunt of Wirral (Con)
My Lords, given that every Labour Government in the last century have left office with unemployment higher than when they came in, will the Minister reconsider the Government’s opposition to those cross-party amendments to the Employment Rights Bill, achieved by substantial majorities in your Lordships’ House, which seek to protect jobs? In that way, she can prevent history repeating itself.
Baroness Sherlock (Lab)
My Lords, I am very fond of our traditions in the House of Lords, but we now have a new one: on a monthly basis, we relitigate the Employment Rights Bill in the form of an Oral Question. One reason why I do not like having this Question every month is that we end up having the kind of ding-dong that is more typical of the Commons, so let me try to answer in a more serious way without getting into scrapping about it.
This Government had to take some difficult decisions to strengthen the country’s finances. However, we believe the Employment Rights Bill was the right choice. We have looked at the evidence and it is backed by academic and business voices as a driver of productivity. I encourage the noble Lord to look carefully at the employment data, where he will see a positive trajectory. Employment is up, inactivity is down, wages are growing and vacancy levels remain healthy. These are clear signs of resilience in the labour market. However, there are clear global headwinds and, where there is slack, one of the most important things for our Government to do is to address supply-side measures, because if times get tough then the people who risk losing out are young people and those farther from the labour market. We have a strategy to support people, tackle the barriers into work and make that work. That is what we are trying to do. We are pushing forward and it is getting results.
Baroness Winterton of Doncaster (Lab)
My Lords, given the emphasis being put on gold-star vocational qualifications, what are the Government doing to encourage local businesses to horizon-scan with regard to future skills requirements and work with local educational institutions, so that courses properly reflect the local jobs market and we avoid the rather hit-and-miss approach where skills do not match the jobs on offer locally?
Baroness Sherlock (Lab)
My Lords, I thank my noble friend for an excellent question. I assume that she refers to the Government’s recent announcement that we are moving away from a target for university entrance to an ambition for two-thirds of young people to reach level 4 by age 25 and 10% to reach levels 4 and 5. In this country, we have traditionally done well on university degrees, but too few young people have level 4 and 5 qualifications—a missing middle that holds back our productivity and stops people getting those higher technical jobs. My noble friend’s point about horizon scanning is crucial. We know that by 2030 we will need 900,000 more skilled workers in priority sectors, two-thirds of whom will need qualifications at levels 4 and 5, so the DWP is working closely with business and, at a local level, local skills improvement plans are led by employers working with jobcentres and local partners. The detail is coming—the Government have a strategy for post-16 education and skills in the long term, which will come out in a White Paper on education and skills that I am assured is imminent.
The Earl of Clancarty (CB)
My Lords, more than 84,000 jobs have been lost in the hospitality industry since the last Budget. This is an industry that should be growing, not contracting, as I hope the Minister would agree. What is the Government’s assessment of why this is occurring and how will they address it?
Baroness Sherlock (Lab)
My Lords, within hospitality, there are still 78,000 vacancies in accommodation and food service activities. That is unchanged on the quarter and is only 7,000 below the pre-pandemic level. Of course, there are global headwinds across the economy, but retail and hospitality are sectors where there has always been a lot of churn. We need to make sure that there are the appropriate workers at the appropriate level.
Therefore, we have announced the rollout of the hospitality SWAP pilots—sector-based work academy programmes—launched in partnership with UKHospitality. We are spreading them to 26 new areas which are in need of jobs and opportunities, including 13 coastal towns like Scarborough and Blackpool. We are also working with other key sectors. One challenge we have is to make sure we match the skills of workers with the jobs that are available. A SWAP can get someone job-ready and able to move into one of those jobs when they become available. There will always be vacancies and part of our job is to ensure that everyone has a chance of getting one. That is what we are focused on.
Lord Palmer of Childs Hill (LD)
My Lords, the UK is experiencing a decline in payrolled employees and a significant drop in graduate job opportunities, with listings for entry-level graduate jobs at the lowest level for seven years. This does not really tie in with the wonderful statistics the Minister told us about. There is another set of statistics which are not very good. What are the Government doing to improve those statistics in real terms?
Baroness Sherlock (Lab)
My Lords, as I am sure the noble Lord is very aware, there is a whole range of statistics. If he goes through the official statistics, he will see a wide range of data, each of which tells us something slightly different. He is right about nudging at payroll data, but I am absolutely right that the employment rate of the UK is at record levels—that is a fact; it is from the Office for National Statistics.
One of the challenges for the Government is to ensure that even when times are tough, we have a strategy to do three things. We must continue to develop growth and investment in our economy to make sure that the labour market is functioning. We then need to make sure that it is an inclusive labour market, and that those who are farthest from it get the skills they need to have a chance of getting the jobs, so employers can have the workers they need. Finally, we need to make sure that every area of the country works. Some local labour markets have 80% employment already, but others do not. The Government’s job is to target those three things, and that is what we are doing.
Viscount Younger of Leckie (Con)
My Lords, there are woeful and worrying figures showing that the number of working-age people signing off work for sickness benefits has gone up from 2,000 to 5,000 per day—per day—with a direct negative impact on employment. What are the Government going to do now, before the publication of the Timms review? I remind the House that we have a whole year to wait until then, which will be one of inaction, inactivity and spiralling costs, will it not?
Baroness Sherlock (Lab)
My Lords, given the levels of inactivity due to health over which the noble Viscount’s Government presided, that is a brave question, but let me answer it none the less. This Government are not simply waiting for the review. The Timms review is looking specifically at PIP which, as the noble Viscount knows, is a benefit that applies in and out of work. As I have told the House before, this Government have looked carefully at three things. One is what happens to people who are on benefits. This House backed the Government in making the difficult choice to change the incentives so that for new people coming in, we would reduce by about half the extra amount of money you get on universal credit. The second is to invest up to £1 billion over the scorecard in making sure we give people the support they need. People out there want to get jobs, and we have to help them. Finally, we have invited Charlie Mayfield to produce a report looking at employers. Every time someone loses a job, it can be an £8,000 loss to the employer from lost productivity. We are investing in all three of those things.
Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)
We will hear from the Cross Benches next.
Lord Vaux of Harrowden (CB)
The Minister quite rightly mentioned young people and the importance of opportunities for them, but there seems to be increasing evidence that entry-level opportunities are reducing and that it is becoming more difficult for young people to take that all-important first step into work. So can the Minister explain why the Government are still insisting on pushing through a change to employment law that their own impact assessment says will actually make it harder for young people to find a job?
Baroness Sherlock (Lab)
My Lords, the Government are making a significant investment in young people. I assume the noble Lord is referring to employer national insurance.
Baroness Sherlock (Lab)
We have to have a level playing field in employment rights. We are investing in supporting young people with a youth guarantee. For young people who are intensively looking for work, there should be no fourth alternative to education, training or a job. To put our money where our mouth is, we have announced that we will give young people who have spent 18 months looking for a job on universal credit a guaranteed job. Young people should be out there either earning or learning; we will make sure they can.
Lord Baker of Dorking (Con)
Does the Minister appreciate that her Chief Whip opened by asking for shorter answers?
Noble Lords
The Lord Speaker (Lord McFall of Alcluith)
My Lords, that concludes Oral Questions for today.