Youth Employment

Debate between Michael Tomlinson and Gillian Keegan

Wednesday 6th December 2017 Westminster Hall

[Gillian Keegan]

Providing young people with the opportunity to get a good job has been a mission of this Government, and I am pleased that this debate is set against the backdrop of such positive figures. From July to September this year, we saw more than half of 16 to 24-year-olds in work and a further third in full-time education. Figures from the Office for National Statistics show that youth unemployment is at its lowest point since 2001, falling by 71,000 in the past year alone. We have experienced that in Chichester, with youth unemployment now less than one third of what it was in 2010.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I congratulate my hon. Friend on securing a hugely important debate. She mentions the figures. In percentage terms, the figure is 11.9%, and the lowest it has ever been is 11.6%. I invite her to the all-party parliamentary group for youth employment. We meet on the day that the ONS figures come out. Our most recent project is on those furthest from the labour market. If we can unlock that, we can improve the figures even further.

[Gillian Keegan]

I agree, and I would love to come along. The figures are really good news, as my hon. Friend said, and they are even more impressive when compared with those of some of our near neighbours in Europe, although one should not take the success for granted.

At the start of the last global recession, I was working in Spain. In that time, I saw youth unemployment reach nearly 50% at its peak, and I saw at first hand the devastating effect that can have on young people’s lives. I lived in a block of flats in Madrid, and it was difficult to watch as many of my neighbours were made redundant. Even worse was seeing young people graduate from university or college and applying for job after job with no success. It is heartbreaking to watch talented and qualified young people spend years trying to get on the first rung of the ladder. Being continuously rejected is demoralising for anyone, and I wish I could say that the situation has improved in the eight years since I left Madrid, but it has not. Many of the same people are still out of work and struggling to get by. The youth unemployment rate in Spain remains very high at 38.7%, and the situation has been ongoing for almost a decade. They genuinely have lost a generation of opportunity.

The wider EU average unemployment rate is currently at 16.7%, with Greece at 43.3% at the top of the list above Spain. In the UK we compare comparatively well, with youth unemployment at 11.9%. Although we can celebrate the success we have seen in getting more young people into work, still our goal must be to ensure that all 16 to 24-year-olds are either earning or learning. That is crucial, as we need to increase our skills for growing businesses and raise the career aspirations of the next generation. The priority must be to remove the barriers to young people getting into work. To do this we need to ensure our younger generations have a variety of routes into the workplace.

When I left school at 16 there were no decent sixth-form colleges in the area that I lived in in Knowsley. I had 10 O-levels, but where was I to go and what was I to do? I was fortunate enough to get an apprenticeship. I really was lucky because only five places were available. Many of my fellow school leavers would have benefited from the wide variety of apprenticeships on offer today.

--- Later in debate ---

[Gillian Keegan]

That is an excellent point. I recently visited Wormwood Scrubs, and I think that would be a fantastic programme to help people who, ultimately, have just taken the wrong path in life, but really do want to rejoin the workplace upon leaving prison.

Last Monday, I went to St Pancras church in Chichester, which runs a breakfast for some of the 80 homeless people and rough-sleepers in the city. There I met a young girl who has been through the care system and now finds herself without a roof over her head. She feels that she lacks the experience and support to get into work. Some 24% of those between the ages of 16 and 18 who have been in care are categorised as not in education, employment or training. That is why programmes such as “Choose Work”, run by Chichester District Council, are so important. They help people to access work experience, helping them on to the first rung of the ladder. I am also delighted to say that the young girl I met on my visit is now in supported housing.

One area of concern is wage stagnation. Figures for 22 to 29 year-olds suggest a decline of 5.5% in real-term wages, compared with 2008. Clearly, the effects of the financial crisis are still present. The Government’s policies on the minimum wage and raising the tax thresholds have gone some way to protect those on the lowest incomes; however, the more skills and qualifications one has, the better the wage, so we must enable young people to upskill and increase their earnings and living standards.

The Government’s role is to help people develop. As the proverb says:

“Be not afraid of growing slowly, be afraid only of standing still.”

To ensure that does not happen, the Government have launched several schemes to bring about greater youth opportunity. The adult education budget, for example, provides free training to those who are over the age of 19 and unemployed, up to and including level 2 qualifications. All that is arranged through the jobcentre. Similarly, the youth engagement fund, launched in 2014, aims to improve education outcomes and employability for disadvantaged young people. More generally, education is diversifying, with the first three T-levels now launched, supported by a further £500 million a year, once those programmes are fully rolled out. They will provide yet another path to a career for young people.

The Government do need to do more for some groups, such as those with a disability. Figures from 2016 show that the youth employment rate is only 38% in those groups. I recently met a constituent whose son Josh has autism. She managed to get him on a work experience programme in IT. Some roles, such as those in IT, are very well suited for people with disabilities such as autism. The overwhelming effect of the work experience was positive, and his mum told me that he was less anxious, and over the period began to open up more and more—a significant challenge for young people with autism. We must do more to help that group.

[Michael Tomlinson]

Will my hon. Friend commend the work of charities such as Leonard Cheshire Disability, which does some excellent work in this area, encouraging those who are disabled to get work experience, and from there to get into the world of work as well?

[Gillian Keegan]

Yes, I think that is an excellent scheme.

The next generation stands at the precipice of the fourth industrial revolution, with big advances in next-generation technology, such as artificial intelligence and biotech. The next generation is also composed of digital natives: those who have embraced completely the power of mobile computing. As a nation, we are preparing to spearhead that advance, and we need to lead in the latest industrial revolution. Businesses can rely on world-class centres of education and research, with a strong digital foundation—18% of all global data flows are already hosted in the UK. That is powerful when combined with our nation’s historic foundations of common law and internationally respected institutions, plus the Chancellor’s Budget announcements of increased investment in research and development, tech infrastructure and skills development. Put together, our potential is real.

Tech waves themselves can provide a mechanism for social mobility. I was young once, and the internet revolution during the ’90s helped me to build a great career. Sitting in my comprehensive classroom in Huyton, in Knowsley, I never thought that I would be negotiating technology deals in Japan just 10 years later—but nobody else knew how to do that either.

To fulfil the needs of industry, we need to ensure that there are opportunities for young people to get high-quality training that meets the needs of business. The fresh food industry in Chichester is worth £1 billion, and currently has a shortage of engineers to handle both the advanced robotics and the chemical elements involved in growing produce. The advanced manufacturing and engineering sector in the Coast to Capital local enterprise partnership represents 4.4% of all businesses, so it is important to upskill young people to fill those roles. Increasing the number of people taking up science, technology, engineering and maths qualifications is therefore vital for industry.