Unemployment Figures

Lord Haskel Excerpts

Thursday 20th October 2022 Lords Chamber

Asked by

[Lord Haskel]

To ask His Majesty’s Government what assessment they have made as to whether unemployment figures provide an accurate picture of the situation in the labour market.

[The Parliamentary Secretary, Cabinet Office, and Parliamentary Under-Secretary, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, no specific assessment has been made. DWP monitors a range of labour market statistics to understand the labour market situation, including the overall employment rate and economic inactivity rate as well as unemployment. The unemployment rate is accurate and independently produced by the Office for National Statistics. We welcome the fact that unemployment is at its lowest level in 50 years, but we are also expanding the help and opportunities for the growing number of economically inactive people.

[Lord Haskel (Lab)]

I thank the Minister for that reply, but the statistics do not properly identify the approximately 9 million inactive people—yes, 9 million—who are ready and willing to work but are unable to do so because of caring responsibilities, mental or physical illness, because they have been let down by back-to-work programmes and failed by the Government or because of changes in the world of work. Since the pandemic, the number has grown by 640,000, whereas in other similar economies the number is declining. What are the Government doing to properly identify and address this inactivity? With low unemployment and many job vacancies, they should be doing this as part of the growth agenda.

[Baroness Stedman-Scott (Con)]

I completely agree with the noble Lord on the points he raises and the fact that there are 9 million economically inactive people. We have a breakdown of the groups that they fall in. We know that 1.7 million are looking after family at home, and 2.5 million are people with sickness issues. That is why we are increasing our efforts to increase the support we give. The noble Lord points out that these people have very complex issues; there may be more than one or two reasons for them not working. I am very pleased that we were able to look at the noble Lord’s son’s report on this and, in fact, give it to the Secretary of State, because she is very keen to read and understand it.