Compulsory Jobs Guarantee

Jonathan Edwards Excerpts

Wednesday 11th February 2015 Commons Chamber

[Stephen Timms]

Jobs are being created. The question is: who is going to get them? At the moment, the evidence clearly shows that young people disproportionately are not. We know that the future jobs fund worked—I will discuss that in a moment—and we are going to be repeating that approach with this jobs guarantee.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The right hon. Gentleman is making some important points about youth unemployment, which is a big issue in Wales. Given that, does he think his Labour colleagues in Wales have been wrong to cut the Jobs Growth Wales fund for 18 to 24-year-olds?

[Stephen Timms]

I shall be discussing Jobs Growth Wales. I believe the hon. Gentleman is commending it, and I agree with him; it has been a great success and there are certainly lessons to be learned by the rest of the UK from the great success of that programme.

--- Later in debate ---

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I do not think we should pretend today that tackling long-term unemployment is anything other than immensely challenging. Fluctuations in levels of employment and unemployment are largely driven by the state of the economy, but somewhere in today’s debate we have lost sight of the fact that, even allowing for economic cycles, most people claim jobseeker’s allowance for a very short time. Most people come off JSA in a matter of weeks or months. Only a small minority of claimants will experience long-term unemployment, and most of them are concentrated in geographic areas where work is hard to find. Inevitably, in a competitive labour market those with least experience and low skill levels find it hardest to find work, and many of those who struggle to sustain employment, and those most at risk of long-term unemployment, face additional hurdles.

In the short time I have today I want to talk about young jobseekers. Youth unemployment is unacceptably high and much more could be done to address it. Young people’s job prospects have been very adversely affected by the financial collapse and recession, but it is really important to emphasise that as the economy recovers youth unemployment has been falling—certainly in Scotland—and is now at its lowest level for five years. I welcome that, but there are still enormous challenges ahead.

The question today is whether the proposed compulsory jobs guarantee would tackle long-term unemployment effectively. I am not convinced by what I have heard from either Front Bench. I do not think the policy addresses the underlying causes of long-term unemployment. It is a blunt instrument that will not help those facing the biggest disadvantages, and it offers too little, too late. It is desperately important that we do not wait until somebody has been unemployed for a whole year before we intervene, because all the evidence suggests that earlier interventions with young people are much more effective. I also regret the lack of ambition from the Government to make the kind of early interventions that might tackle disadvantage.

In response to soaring youth unemployment in the wake of the financial crash, the Scottish Government introduced the Opportunities for All scheme, which offers every 16 to 19-year-old in Scotland a place in work, education or training. Take-up has been overwhelming: record levels of school leavers—more than 92%—now have a positive destination on leaving school, and more importantly, those positive destinations are being sustained for 90% of school leavers. The number of young people not in education, training or employment is now at its lowest level since before the financial crash and has decreased across every local authority area.

There is no room for complacency, however, and we need to talk about the minority still being left behind. In certain parts of the country, job opportunities are still very limited. The final report of the commission for developing Scotland’s young work force, chaired by Sir Ian Wood, was published in June last year. It set out recommendations to reduce youth unemployment by 40% by 2020 and proposed an ambitious transformation of the way in which employers, schools and colleges, and local authorities work with young people to fulfil their potential. However, it also highlighted the extent to which inequalities were compounding disadvantage in the labour market. For example, although disabled young people often have positive destinations when they leave school, a few years on they are four times more likely to be unemployed than their non-disabled peers.

[Jonathan Edwards]

The motion states that those who do not take up the compulsory jobs guarantee would face losing their benefits. Is there not a danger that such a draconian measure would lead to many people being lost in the system with little hope for the future?

[Dr Whiteford]

The hon. Gentleman makes an important point. Obviously, young people who lack skills and qualifications are more likely to struggle in the labour market, but our black and minority ethnic young people are also experiencing disproportionately high rates of unemployment. Our looked-after young people have the poorest job prospects of all. Just one in three care leavers is likely to be employed nine months after leaving school.

The point is that many of the young people furthest from the labour market, and certainly those at greatest risk of long-term unemployment, face complex barriers. It is not just a case of, “Here’s a job, get on with it.” The compulsory jobs guarantee does not address these complexities at all. Indeed, it would make unemployed young people wait a year before they get an offer of a work opportunity, and that offer would be made with the threat of benefit sanctions held over their heads like the sword of Damocles. I do not think anyone objects to sanctions that are proportionate and fair—everyone who is fit for work should be willing to take a job if it is offered—but that is not going to overcome the challenges facing many of the people at the greatest risk of long-term unemployment.

We have seen the impact of poorly applied sanctions in the food banks in all our communities. The young people I have met in my constituency—kids with learning disabilities, literacy problems, impaired speech or movement or chronic health issues, or kids who have just had wretched early lives—all want to work, but it is not always straightforward to help them to find work, to make themselves attractive to employers or even to understand that they have something valuable to offer. In that regard, I pay tribute to the teachers in our schools and to voluntary organisations such as the Prince’s Trust and Theatre Modo, which are working in my constituency to help vulnerable young people.

We were talking earlier about the failure of the Work programme in Scotland and the need for that responsibility to be devolved as soon as possible. The same applies to other aspects of employment support, as was recommended by the Smith commission.