Unemployment
Monday, 9 March 2026
Contributions
John Cooper (Dumfries and Galloway) (Con)Conservative
3. What assessment he has made of trends in the level of unemployment.
Jerome Mayhew (Broadland and Fakenham) (Con)Conservative
7. What assessment he has made of trends in the level of unemployment.
Sir Desmond Swayne (New Forest West) (Con)Conservative
18. What assessment he has made of trends in the level of unemployment.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)Conservative
20. What assessment he has made of trends in the level of unemployment.
The Secretary of State for Work and Pensions (Pat McFadden)Labour
Headline unemployment is below its average rate under the previous Government, and inactivity is falling as more people actively seek work. Some 381,000 more people have moved into work over the past year. However, there is a long-term challenge in youth unemployment, which we are responding to through the youth guarantee, more youth apprenticeship starts and other measures.
Youth unemployment is, in fact, spiking at nearly 5.3%, which is heartbreaking, particularly for young people who cannot get that all-important first job. The Government like to pretend that they are a cork in a storm-tossed sea and unable to do anything about this, but they could reconsider employer national insurance contributions and the disastrous Employment Rights Act 2025, which is driving up youth unemployment.
The hon. Member will be aware of the national insurance tax break under which no employer national insurance contributions are payable for workers under 21, unless they earn more than £50,000, which not too many workers under the age of 21 do.
The Minister answered a question about unemployment by giving data about employment, so let us focus on unemployment numbers. By how much has general unemployment increased since July 2024?
I did talk about unemployment. As I said, the unemployment figures are lower, on average, than when the hon. Gentleman’s party was in power. We are, of course, doing everything we can to help people into work, which is why I referred to the measures that we are taking, including the youth guarantee and increased apprenticeship starts. That is a much more active approach than the one carried out by the previous Government, who saw rising numbers of young people not in education, employment or training but did precisely nothing about it.
The Government loaded costs on to employers while the benefits bill let rip. What on earth did they think would happen?
As I said, no employer national insurance contributions are payable for workers under the age of 21, and we believe that workers should be decently paid for the work they do. We are responding to the particular challenge of youth unemployment, which I acknowledge is there, and was there when the Conservative party was in power, with active measures such as the youth guarantee and more youth apprenticeship starts. I remind the House that youth apprenticeship starts fell by 40% while the Conservatives were in power.
I recently launched my Bognor Regis and Littlehampton business club. Many who joined are independent hospitality and leisure businesses, and their No.1 concern is how difficult it is to take on new staff under this Government. What assessment has the Department made of the impact of the Treasury’s new jobs tax, and the Government’s new employment regulations, on job creation in coastal constituencies such as mine? What steps is the Secretary of State taking to mitigate those effects?
I congratulate the business club—such organisations play a valuable role in our constituencies. The hon. Lady asks what measures we are taking, and I am grateful to the Chancellor for the extra funding made available in the Budget for the youth guarantee. That will gives hundreds of thousands more training and work experience places to young people and, importantly, will provide funding for the long-term youth unemployed to gain six months’ work, paid at the national minimum wage for 25 hours a week, so that young people get used to the discipline and duty of turning up, doing a job, and experiencing the sense of pride and purpose that comes with having a job.
Lauren Edwards (Rochester and Strood) (Lab)Labour
Net migration has fallen to the lowest level since 2021, which will have a significant impact on our labour market and economy if we do not train and support unemployed people in the UK into jobs in key sectors. What steps is the Secretary of State taking to target back-to-work programmes, especially those for young people who are not in work, education or training, to fill skills shortages in crucial areas such as health and social care?
My hon. Friend asks an excellent question. The fact that net migration is falling to lower levels than we have seen for some time gives added urgency to a question that has often been posed: why do we not do more to train our own workers? That is precisely why I am prioritising youth apprenticeship starts, which fell by 40% under the previous Government. We must arrest that decline and ensure that we respond to the new situation of falling levels of net migration by training more of our own young people.
Steve Yemm (Mansfield) (Lab)Labour
Will the Secretary of State outline what exactly the youth guarantee means for young people in my constituency of Mansfield?
What it will mean for young people in my hon. Friend’s constituency, and many others, is intensive work coach training, and the chance of training or work experience. If that does not get them into a job, ultimately it will mean a subsidised job, where they get six months of work experience, paid at the national minimum wage for 25 hours a week. The last thing we want is people leaving education and going on to a life on benefits.
Chris Vince (Harlow) (Lab/Co-op)Labour (Co-op)
The Secretary of State will know that the level of young people not in education, employment or training in Harlow has gone down, due to the hard work of Harlow College, working in partnership with local schools such as Passmores Academy and Burnt Mill Academy, which I visited this morning. Businesses and the local chamber of commerce are telling me that the No.1 challenge for getting young people into employment is the skills they have upon leaving school. What work is the Secretary of State doing with the Department for Education to ensure that we have a curriculum that incorporates the skills that employers so desperately need?
I am relieved to hear that the number of young people not in education, employment or training is dropping in Harlow. The number of such people rose by a quarter of a million in the last few years of the Conservative party’s time in government, and they did absolutely nothing about it. Bringing skills into the Department for Work and Pensions gives us the chance to bring skills policy and labour market policy closer together, to help young people get that vital chance of a first job.
Madam Deputy Speaker (Judith Cummins)Labour
I call the shadow Minister.
Mr Peter Bedford (Mid Leicestershire) (Con)Conservative
When this Government came into office, unemployment stood at 4.2%. After a brutal 18 months of job-destroying, anti-business, anti-growth policies, it now stands at 5.2%, with young people bearing the brunt—1 million of them are not in employment, education or training. We Conservatives believe in being in work and off welfare, and that is the best path to eradicating poverty. Will the Secretary of State break with the mistakes of all previous Labour Governments and commit that unemployment will be lower at the end of this Parliament than it was at the start?
I believe this may be the first time that the hon. Member has appeared at the Dispatch Box in his capacity as shadow Minister—if I am wrong about that, I am sorry; but if I am right, I welcome him to his position. He asks about the forecast for the future. It was published alongside the spring statement a couple of weeks ago, and in it the Office for Budget Responsibility forecast employment to rise in every year of the forecast period.
I call the Liberal Democrat spokesperson.
Steve Darling (Torbay) (LD)Liberal Democrat
Politics is all about choices. Last week, the Chancellor stood at the Dispatch Box with a choice: she could have chosen to reverse the jobs tax that is costing thousands of jobs for young people up and down the United Kingdom. Why she did she not make that choice?
Whatever Department I am in, I hear the same question from the Liberal Democrats. They support all the extra spending that is funded by revenue-raising measures, but they oppose all the revenue-raising measures themselves. If the hon. Gentleman wants NHS waiting lists to fall and if he calls for more spending every week, then he has to support the revenue-raising measures that make that possible.
Source: UK Parliament Hansard API. Debate ID: 5258619.