Jobs Market

Lord St John of Bletso Excerpts

Thursday 5th February 2026 Lords Chamber

[Lord Katz (Lab)]

My Lords, I share the noble Lord’s sentiment about the importance of the dignity of work, but unemployment is a long-term trend, both here and across the G7, and it has been rising since 2023. The good news is, however, that the number of people who are economically inactive has fallen by nearly half a million, because more people are actively looking for work. Indeed, last year, employment grew by more than half a million, which is nearly twice as much as the rise in unemployment. The noble Lord asked what we will do about it, and the answer is clear. The Government are taking action on young people who are neither earning nor learning, which the last Government ignored. The Government are taking action on long-term sickness, which under the last Government reached a record high. The Government have seen pay rise more since they were elected than under the first 10 years of the previous Administration, helping to tackle the cost of living. We are going to solve the problems we inherited, and we are doing something about it.

[Lord St John of Bletso (CB)]

Can the noble Lord elaborate on what assessment has been made of the number and the type of jobs most impacted by AI-driven automation?

[Lord Katz (Lab)]

We are working across government to monitor the impact of AI and support job creation, providing skills training for those facing disruption. Just last week, the Technology Secretary announced that every adult in the UK is eligible to take free courses to gain practical AI skills for work, with a target of upskilling about 10 million employees. AI will undoubtedly transform the world of work, but the Government are taking action by establishing the AI and the Future of Work Unit in DSIT to ensure that this transformation boosts productivity and opportunities rather than deepening inequality.