Youth Unemployment

Meg Hillier Excerpts

Wednesday 9th November 2011 Commons Chamber

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

In my constituency, unemployment among 20 to 24 year olds is now at nearly a quarter. Members across the House should be alert to the cohort challenge, because a whole cohort of graduates is being hit hard. The unemployment rate for new graduates in the third quarter of 2010, according to the Office for National Statistics, was 20%. One in five recent graduates who are economically active and looking for work is unable to find it. That is almost double the rate from the start of the recession, which was 10.6%.

[Mr Byrne]

My hon. Friend makes an extremely important point, which echoes that made by the hon. Member for Beverley and Holderness (Mr Stuart). We know that if people are out of work when they are young, they are more likely to be low paid in the course of their career, more likely to suffer ill health and more likely to be unemployed again. That is why the Prince’s Trust and others are right to focus their attention on the crisis of youth unemployment that is unfolding in our country.

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[Nigel Adams (Selby and Ainsty) (Con)]

I speak as someone who knows what it is like to have been made redundant, and I have also seen my father lose his job in his 50s. I can tell hon. Members that there are not many things worse than when a breadwinner comes back home to his family to tell them that he is out of work and there is no income. I also recall that as a 17-year-old I was asked, somewhat prematurely, to leave school, and I found myself having to look for work. My first job was not the one that I would have ideally wanted, but it was work and it provided my first wage—£48 a week, as I recall it. Getting a start is crucial for young people and I always tell the youngsters I talk to that being in the workplace is much better than not being in work at all, because they have to get something on their CV.

It is easy to go for the headlines and talk down our economy, but I would like to take a moment to talk up this Government’s efforts to improve youth employment chances, not just through job creation, but through their support of the apprenticeship scheme programme. Just over two months ago, the Minister for Further Education, Skills and Lifelong Learning announced cuts to bureaucracy to encourage employers to take on a large number of apprentices, and this serves as a proven way to fill the skills gap in our economy. As someone who has owned and run businesses, and actually created employment before entering this House, I am all too aware of the damage caused by excessive red tape and bureaucracy. It is vital that we reduce regulation in order to encourage businesses to employ youngsters. I am pleased that the Government have set about tackling this via the red tape challenge.

[Meg Hillier]

Will the hon. Gentleman give way?

[Nigel Adams]

I would love to but I need to crack on; we have only got four minutes each.

This Government also promised 50,000 extra apprenticeships in 2010-11, but the figure has been surpassed and we have seen a record year—an increase of over 50%. In fact, in my constituency 850 people are on apprenticeships, an increase of 67% in the last year. Only by proving to business and the private sector that it is worth their while investing in youngsters can we fulfil our long-term goal of reducing unemployment, and I am confident that, via apprenticeships, we are taking the right steps towards that aim.

Hon. Members can do more than their bit to help young people and others back into work. That is why I organised a jobs fair in my constituency, and I know that many of my colleagues have done something similar. More than 1,100 jobseekers came through the door—both unemployed, and employed but looking for new opportunities. It was evident to me at my jobs fair that vacancy statistics from Jobcentre Plus do not necessarily reflect the actual climate. Its figures for October 2011, published in the Library, would have people believe that at least three jobseekers apply for every vacancy advertised in my constituency—a deficit of employment. However, many of the work and training opportunities offered by the 52 different organisations that turned up to my jobs fair were not advertised in the Jobcentre Plus system, and never are. I am also pleased to say that the feedback from the jobs fair was very positive, and lots of people have received interviews and job opportunities and have started work. Indeed, I have visited some of the youngsters who have started work.

I am confident that the Government have a credible plan for getting this country’s finances back on track, reassuring businesses and reducing regulation. Labour should take note that—

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[Paul Maynard (Blackpool North and Cleveleys) (Con)]

It is a great pleasure to be called to speak in this important debate. I know the Opposition like to make their Wednesday afternoons political theatre, but there are many people on the Government Benches who are concerned about youth unemployment and have ideas about how the situation can be improved.

As the MP for Blackpool North and Cleveleys, I represent the fourth most deprived Conservative-held seat in the country. That is no badge of honour. It is with no sense of satisfaction that I report that year on year youth unemployment has risen 36% since September 2010. I take no pleasure from the fact that even on the figures that were fed to The Times by the Labour party, the number of long-term youth unemployed has risen from 75 individuals to 100 individuals since May 2010, but I point out to Labour Members, as they seem to have failed to understand earlier, that there are 276 constituencies where youth unemployment has fallen or remained static since May 2010, according to the same figures as they obtained from the House of Commons Library.

I am sure that everyone who speaks in the debate will say that apprenticeships matter, and they matter to me. I have taken on one apprentice, Nathan, in my constituency office, and he is excellent. Many on the Government Benches have done the same, but we in the House obviously cannot solve the problem alone. I am delighted that, thanks to what the Government have been doing, the number of apprenticeships in my constituency has risen from 300 to 940.

[Meg Hillier]

All hon. Members would agree that apprenticeships are a good thing and that we want more of them, but what would the hon. Gentleman say about the issue that I have picked up on on doorsteps throughout the country, which is that young people with A-levels, and sometimes with degrees, are going for apprenticeships that would normally have been available to young people with lower levels of qualifications, thereby pricing them, so to speak, out of the market? Does he share my concern about that and will he raise the issue with Ministers in his Government?

[Paul Maynard]

I am grateful to the hon. Lady for raising that issue. It brings together a number of points that Members are likely to make this evening. First, we should welcome the fact that better qualified individuals are now seeking apprenticeships. We should not say that apprenticeships are only for those who are not academically inclined. Secondly, the Labour party now disapproves of older people seeking to take on apprenticeships. It was a Labour Government who commissioned the Leitch review, which wanted to see more older people going into apprenticeships.

I represent a seaside town. I know the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) does not understand the economics of seaside towns, so I shall try to explain to him that one of our fundamental problems, as the hon. Member for Hartlepool (Mr Wright) pointed out in The Guardian interview that I saw in the debate pack, is that of generational worklessness and the potential for generational exodus, even—people not finding opportunities in seaside towns and having to leave.

For members of the third generation who do not have a job and cannot find a job, the inclination to go out and look for a job, and even seeing that part of their life involves going out to work, is lost. Part of the solution is getting the older generation into apprenticeships and into work as much as the younger generation. That is why, as my hon. Friend the Member for Brigg and Goole (Andrew Percy) tried to make clear, the problem did not start in May 2010. It did not start even in May 1997 or May 1979. There has been a gradual structural problem of worklessness, particularly in post-industrial societies. Tourism and hospitality are not like coal mining or the steel industry, but they have none the less gone through a period of decline in my constituency and we have seen employment and opportunities fall as a consequence, so there is a challenge.

The shadow Secretary of State mentioned the Prince’s Trust, which does a fantastic job in my constituency. Three times a year it takes a group of 12 young people from deprived backgrounds. I have been to one of the thank you parties at the end of a session and heard the powerful tales of how they got into the situations they found themselves in. Many brought their problems to Blackpool from outside the town. Many came from broken homes, broken families and disappointed backgrounds, yet they have struggled and managed to succeed.

What frustrates me about the debate is not so much the usual political to and fro, the misuse of statistics and Members trying to portray things as good or bad, but the Labour party’s failure to understand that this is not about who is to blame. It is about trying to understand why worklessness occurs in our society, why young people are unable to enter employment and what we need to do to get them there. The Government are making progress. I would of course like it to be faster, but we are putting the building blocks in place and I welcome that.

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[Lorely Burt]

I will not, if the hon. Gentleman will forgive me.

I agree that we could work up a programme to give national insurance relief to small companies taking on new workers, maybe even in the form of a rebate after the first complete year of employment. I have got lots of other ideas, which I hope colleagues in the Treasury will consider. Again, I agree with the Opposition: we need more incentives to stimulate private business to rev up the engine of growth.

It all boils down to growth, but it must be growth in the private sector, not growth led by creating jobs that do not exist, which is what one could argue the future jobs fund did. The Minister has outlined all the steps we are taking to create jobs and prosperity. The motion says only two things about youth unemployment: that long-term youth unemployment is up, and that we should not have scrapped the future jobs fund. Well, youth unemployment is up, but it grew under Labour by 40%—going from 664,000 unemployed 16 to 24-year-olds in May 1997 to 924,000 in May 2010. According to the latest statistics, that figure is 991,000. I hope that a Labour Member will intervene to explain to me how that equates to a 68% increase because, according to my mathematics, that seems more like 7%.

[Meg Hillier]

I thank the hon. Lady for giving way, especially given that time is short. Does she not agree that, out in the real world, people do not want the bickering. What they are concerned about, as we should be, is that an entire cohort—for example, graduates—is experiencing a higher rate of unemployment. We should be addressing the whole cohort issue, because we are condemning an entire group of young people to lower incomes and worse life chances as a result of Government policies.

[Lorely Burt]

I am sure we agree on the seriousness of the situation and all the different groups of young people who are affected. Unfortunately, the hon. Lady did not answer my question, but never mind.