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Written Question
Unemployment: Young People
Monday 21st October 2024

Asked by: Lord Rose of Monewden (Conservative - Life peer)

Question to the Department for Work and Pensions:

To ask His Majesty's Government what assessment they have made of the estimate in the Office for National Statistic's Labour market overview, UK: September 2024, that the UK economic inactivity rate for people aged 16 to 64 years was 21.9 per cent in May to July 2024; and what action they are taking to reduce economic inactivity of people of working age.

Answered by Baroness Sherlock - Parliamentary Under-Secretary (Department for Work and Pensions)

The Government has made clear that we consider the current rate of inactivity to be unacceptably high. With nearly 2.8 million people economically inactive due to long-term sickness and the last Parliament seeing the biggest increase in economic inactivity in almost forty years, our inactivity rate is above pre-pandemic levels at 21.9% for May-July 2024 and, unlike most major economies, our overall employment rate has failed to recover to its pre-pandemic level.

Government has set an ambition to get to an 80% employment rate, alongside raising living standards and tackling insecurity at work. The Government plans to tackle economic inactivity, support people into good work and help them to progress.

Proposed reforms include

  • A new public employment and careers service to help get more people into work and to progress in work.
  • Working with local areas to tackle economic inactivity including the development of joined-up work, health and skills plans for the economically inactive, with input from mayors, local councils, the NHS, businesses, colleges and the voluntary sector to address barriers and deliver employment opportunities for local people.
  • A youth guarantee for all people aged 18 to 21 to ensure that they can access quality training opportunities, an apprenticeship or employment support.