Youth Employment

Iain McKenzie Excerpts

Tuesday 15th July 2014 Westminster Hall

[Mr Iain McKenzie (Inverclyde) (Lab)]

It is indeed a pleasure to serve under your chairmanship this morning, Mr Crausby.

I congratulate the hon. Member for Norwich North (Chloe Smith) on securing this important debate on youth employment, but it would be remiss of me if I did not commence my speech by highlighting the unemployment figure for young people in this country. Starting their adult life unemployed is not what we want for our young people, but more than 800,000 young people across the UK aged between 16 and 24 were unemployed in the first quarter of this year. That is a worrying statistic, not only because it reads badly, but because it is worrying for the young people themselves and their parents. For the first time in generations, parents from all types of background fear that their children will do worse than them.

We know what we need to do. If we truly want to get our young people into work, we need a highly skilled work force that will enable us to compete with the emerging nations of China and India, as well as advanced industrial nations such as the United States and Germany. What we need is a long-term plan for jobs. We also need to focus on the skills agenda and do more to help the 50% of young people who do not go to university. I never went to university. It could be said I was lucky, going straight into the world of employment on leaving school, but when I left school, finding work was not about luck; there was a plan in place for jobs. In my area of the country, when the school gates opened on the last day of the summer term, other gates in the various sectors involved with the shipyard industries also opened and a transfer took place. Skills were gained and young people had a choice about what they wanted to be in their future career. That that does not happen today.

We know that in the past in my area of the country, we tended to put all our eggs in the one basket—heavy industries. We did the same in the 1980s, replicating the process with the electronics industries. We filled the gap created by the decline of the heavy industries with these “sunrise” industries. Throughout the history of both the heavy industries and the electronics industry, we innovated, pushed the design boundaries and found new markets. With ships, we redesigned them and took them to a new level, replacing many items on the ships with new, cutting-edge design. We did the same in the electronics industry. Without the work done in my area of the country, people would not have the phone in their pocket—if we had not pushed processors and improved them, including pioneering the use of surface-mounted multi-layer technology—but somehow that innovative desire to create new markets and so create new employment evaded us in the following years.

I will focus on Scotland for a moment, because we outperform the UK on youth employment and youth activity rates. Scotland has a higher youth employment rate and a lower youth inactivity rate than the UK as a whole, but we are never complacent. This process is about focusing on what matters, which is employment for our young people.

The best possible start to someone’s adult life is employment, whether that comes after leaving school at 16 or after leaving university. The hopes and aspirations of our young lie in finding work.

[Mr Brooks Newmark (Braintree) (Con)]

Will the hon. Gentleman at least recognise that youth unemployment in his constituency has come down by 37.8% since the last election?

[Mr McKenzie]

Indeed, and I thank the hon. Gentleman for highlighting that fall. I will tell him exactly how we achieved it. Inverclyde outperforms most areas in Scotland because we punch above our weight. We have done that by pulling together resources from many organisations and put in place an Inverclyde Alliance focused on what matters—employment—with a youth employment action plan at the heart of its work. We are pleased to point to the fact that 94% of our school leavers reach a positive destination, so only a single-figure percentage do not reach one. With additional services, the programme provides an end-to-end employability service that is not just about placing a young person with an employer and hoping for the best; it is about continuous engagement with the employer and the young person. What does the young person need to enhance their skills? What do they need to keep them in employment, or to help them to look for other employment at the end of their term of placement? We ask the business, “Where are you going with your business? Where will you take it to in the next year or so? Can this young person come with you, if they have the required skills, and what skills do you identify that the young person needs to retain the position within your company?”

Of course, in Inverclyde we have continued with the future jobs fund. Obviously, the British Government felt that they did not want to retain the fund across the country, but it works and it has been working for us. In addition, we have made a successful bid to the Scottish Government for additional European funding, allowing 170 additional wage incentive packages that have enabled local companies to recruit even more young people. A total of 52 employers have been engaged, creating a total of 58 posts for our young people during the last year.

This year in Inverclyde, my Labour council allocated substantial additional funding for employability measures for young people. That has resulted in an additional 50 placements with employers across Inverclyde, because Labour in Inverclyde has been focused on what matters—employment, not separation. Our young people believe in having more choices and more chances. I hope you will forgive me, Mr Crausby, for briefly saying that that is why I believe they will vote in September to stay with the UK.

I will also touch on an entrepreneurial programme that we have put in place. The Recruit programme is based upon “The Apprentice”, with young people looking to be hired rather than fired. Many tasks are set up and the young people step up to the mark, proving to many employers that they have the entrepreneurial spark and can be innovative in what they have been tasked to do. However, as I said before, we are never complacent and there are still 72,000 unemployed young people in Scotland, which is unacceptable. We need to get on and reduce that figure.

We desperately need to get our young people into training and apprenticeships. Young people need every chance to improve their skills if they are to get good jobs. Speaking as a former apprentice, I know the value of apprenticeship training. My apprenticeship took four years, but I suspect the period required to learn skills can be reduced in the modern era. However, it should not be reduced to the period or level of work experience, which some people would like to see apprenticeships reduced to. In Inverclyde, we now have around 600 modern apprenticeships, which can offer so much, and there is no reason why apprenticeships should not be expanded to cover a wide variety of jobs and professions. Employment is an essential part of life and without it, especially for our young people, the future will be bleak, because our young people must be our future. We need to plan for jobs and industry, looking to the future business markets and, yes, manufacturing can again prosper across this country. As I said in my maiden speech, everyone has the right to work.