Youth Unemployment

Richard Graham Excerpts

Wednesday 9th November 2011 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

May I say at the outset that I am disappointed that we have had only two hours to discuss youth unemployment and jobs, which is one of the most important issues in this country at the moment? I will use my four minutes to try to expose the myth that we are all in this together. Before the election, the now Prime Minister said that the north-east would be hit hardest and first, and that the public sector there was too big. What an absolute disgrace! It was an insult to everyone in the region, and what is more, only this week a report by the Institute for Public Policy Research North think-tank stated that 32,000 public sector jobs have been lost in the north-east so far this Parliament, yet 24,000 public sector jobs are being created in the south-east of England and 8,000 in London. Where is the fairness in all this? How are we in this together? It is not right. Why is the north-east continually hammered by this coalition Government?

[Richard Graham (Gloucester) (Con)]

rose—

[Ian Lavery]

Excuse me, but the hon. Gentleman has just come in. There are people who have been in here for ages.

In my constituency, 20.7% of young people are not in education, employment or training. It was once a thriving mining community, but we now have unemployment levels of 7.7%. Over the past five years, there has been a 67% increase in the number of jobseeker’s allowance applications, and over the past 12 months, a 19.8% increase. The number of applications from those aged 24 and under has increased by 34% in 12 months. It is an absolute disgrace.

The most horrendous statistic is that for every job vacancy in Wansbeck, there are 9.6 applicants. The jobs are not there for people. It is unacceptable, and we cannot continue to treat people like this. It has been said on numerous occasions, “Is this a price worth paying?” Do people believe that youth unemployment is a price worth paying? It is not. The lack of jobs and opportunities will see this country decline in the future. Young people should be seen as our future doctors, business men and women, nurses, firefighters, teachers, soldiers, sailors and council workers. We should treat them with a little decorum.

--- Later in debate ---

[Rachel Reeves (Leeds West) (Lab)]

It is right that we should have the chance to debate youth unemployment today, as our economy continues to flatline and unemployment is rising. It is just a shame that neither the Secretary of State for Work and Pensions nor a single member of the Treasury Front-Bench team has bothered to turn up. How complacent and out of touch this Government are.

The last time we debated the economy in this House was on the day when new figures showed that youth unemployment had reached a 17-year high, with 991,000 young people out of work. Next week we shall have an update on those numbers, but in the last few weeks the Government have done nothing to address the national youth unemployment crisis. It is almost two years since this country moved out of recession, yet the prospects for unemployment and youth unemployment are gloomier than ever. Labour has set out a five-point plan for jobs and growth, and called on the Government to introduce an alternative to their plans, which are hurting but not working. Businesses up and down the country are seeing demand hit. Young people out of work and facing trebled tuition fees are seeing the impact. Families struggling with high VAT and rising energy prices are feeling the impact. All are still waiting for a plan for jobs and growth from this Government. We are all waiting for some leadership from this out-of-touch Government on a jobs and growth plan internationally as well. Every day of waiting is a day wasted, with potential going untapped and opportunities squandered.

[Richard Graham]

I congratulate the hon. Lady on her appointment. Can she explain to me how it was that during the 13 years of Labour Government, 5,600 private sector jobs were destroyed in my constituency of Gloucester?

[Rachel Reeves]

What I do know is that in the hon. Gentleman’s constituency, as in mine, youth unemployment and long-term youth unemployment is going up on this Government’s watch.

There has rightly been concern from all parts of the House today about youth unemployment. My hon. Friend the Member for Hartlepool (Mr Wright), whose constituency has the highest youth unemployment in the country, rightly talked about the impact on his constituents. My hon. Friend the Member for North West Durham (Pat Glass) gave a passionate speech about youth unemployment and its effect in the north-east, as did my hon. Friend the Member for Wansbeck (Ian Lavery), who talked about people in his constituency being hammered by this Government’s policies. My hon. Friend the Member for West Bromwich West (Mr Bailey), in whose constituency long-term youth unemployment has risen by 106% in just nine months, was right to talk about the need for a national insurance holiday for small businesses. My hon. Friend the Member for Halton (Derek Twigg), in whose constituency long-term youth unemployment has gone up by 81% in nine months, raised the prospect of Royal Bank of Scotland bonuses of £500 million this year, with no tax on bank bonuses to fund youth jobs—a policy proposed by the Labour party.