Jobs Market
Debate between Lord Katz and Lord St John of Bletso
Lord Katz (Lab)
My Lords, I share the noble Lord’s sentiment about the importance of the dignity of work, but unemployment is a long-term trend, both here and across the G7, and it has been rising since 2023. The good news is, however, that the number of people who are economically inactive has fallen by nearly half a million, because more people are actively looking for work. Indeed, last year, employment grew by more than half a million, which is nearly twice as much as the rise in unemployment. The noble Lord asked what we will do about it, and the answer is clear. The Government are taking action on young people who are neither earning nor learning, which the last Government ignored. The Government are taking action on long-term sickness, which under the last Government reached a record high. The Government have seen pay rise more since they were elected than under the first 10 years of the previous Administration, helping to tackle the cost of living. We are going to solve the problems we inherited, and we are doing something about it.
Lord St John of Bletso (CB)
Can the noble Lord elaborate on what assessment has been made of the number and the type of jobs most impacted by AI-driven automation?
Lord Katz (Lab)
We are working across government to monitor the impact of AI and support job creation, providing skills training for those facing disruption. Just last week, the Technology Secretary announced that every adult in the UK is eligible to take free courses to gain practical AI skills for work, with a target of upskilling about 10 million employees. AI will undoubtedly transform the world of work, but the Government are taking action by establishing the AI and the Future of Work Unit in DSIT to ensure that this transformation boosts productivity and opportunities rather than deepening inequality.
United Kingdom Jobs Market
Debate between Lord Katz and Lord St John of Bletso
Lord Katz (Lab)
I thank my noble friend for that question. She makes an essential point about growing young people’s aspiration and potential, as well as about the future of our economy and of our country. I am pleased to tell her that the Government are supporting more young people into work through our new youth guarantee for all young people aged 18 to 21, including young people with health conditions, to ensure they can access quality training opportunities and apprenticeships, or help to find work. This includes targeted support for young people with learning disabilities. In the other place, we heard the Chancellor set out in the spending review record investment in training and upskilling young people, with £1.2 billion a year by the end of the spending review. That is on top of a record £3 billion spent on the apprenticeships budgets for 2025-26, which is the largest spend on apprenticeships ever. All I will say is that, unlike the previous Government, we are not letting our young people down. They are our future, we have hope for them, and they will deliver for us.
Lord St John of Bletso (CB)
My Lords, can the Minister tell us what assessment has been made of the impact of artificial intelligence on the job market? What measures are being taken to reskill the workforce?
Lord Katz (Lab)
I thank the noble Lord for his question. He, like me, will be waiting with bated breath for the publication of the Government’s industrial strategy White Paper, which will set out the Government’s approach to investing in eight priority sectors—those deemed most likely to drive UK economic growth. It will not surprise the noble Lord or, indeed, the House that digital technologies, including artificial intelligence, will be one of the sectors right at the heart of the Government’s industrial strategy. As I have set out, we have a youth guarantee to deliver a record spend for young people. Ensuring they can take advantage of the opportunities of AI will be at the heart of making that work.