Economy: Inflation and Unemployment

Lord Martin of Springburn Excerpts

Thursday 27th October 2011 Lords Chamber

[Lord Sassoon]

First of all, as the noble Lord, Lord Myners, knows, the Governor of the Bank of England has set out very clearly his and the MPC’s analysis of the inflation situation and of their reasons for increasing by £75 billion the asset purchase scheme, so I am not going to answer for them. On unemployment, I would point out that in the second quarter of 2011 the internationally comparable employment rate for the UK was 69.4 per cent. That was the fourth highest employment rate in the G7, behind Canada, Germany and Japan and ahead of, among others, the US. We also had the seventh highest employment rate in the European Union in the second quarter. Of course we would wish to see growth increased, but we have to have sustainable growth. We should not put ourselves in the position of thinking that, on unemployment, we are out of line with our peer group. We are coming out of the deepest recession that we have known for many decades—and who caused that?

[Lord Martin of Springburn]

My Lords, I must tell the Minister that I welcome the fact that the Government are keen to see as many apprenticeships as possible. In that case, will he urge the authorities of this House and the other place to take on more apprentices and trainees? We have a fine building and many highly skilled people, and it would be good if we showed a good example by employing more apprentices and trainees in this very building.

[Lord Sassoon]

I am sure that the authorities of both Houses have heard what the noble Lord, Lord Martin of Springburn, has said. Of course, skills will be part of the supply-side reforms that we continue to work on going forward.