Unemployment Levels

We all know the importance of work, and since the election we have seen employment rise by 500,000, but Britain is a country that has too few young adults in work or education, and where the post-pandemic employment recovery has taken too long. That is why we will continue our reforms to support more people into work.

To cut spending and balance the books, Labour has to get people off welfare, but the Chancellor’s job tax and the Deputy Prime Minister’s unemployment Bill mean that there are fewer jobs for them to go to. Some 285 more of my constituents are out of work than last year, and since the Budget a quarter of a million jobs have vanished. A rise in public sector roles in the same period is probably masking a far deeper crisis going on in the private sector. There is no joined-up thinking. Has the Secretary of State warned her Cabinet colleagues that their policies are making her job impossible?

The Secretary of State inherited a labour market that was a mess under the Conservatives, with nearly 1 million young people not in education or training, and 2.8 million too sick to work. Employment is up by 500,000. Economic inactivity—[Interruption.] Conservative Members might not like to hear it, but economic inactivity is down by 300,000 under this Government. No one on the Government Benches will take lectures on a good labour market from the Conservatives.

Unemployment is now 115,000 higher than when Labour took office. The Chancellor’s new jobs tax and the Employment Rights Bill make hiring a new person more expensive. The family farms and family business taxes are reducing investment. Can the Minister therefore explain how he will reduce unemployment while the Chancellor is pursuing policies that increase it?

I do not want to try the patience of the House but, as I have said, employment is up by 500,000 under this Government. [Interruption.] Conservative Members do not like to talk about that. The hon. Gentleman mentions what British business wants—what British business wants is a Government who are actually fixing the public finances and the public services that mean that when a member of staff gets sick, they do not sit on a waiting list for years, as they did under the previous Government. The Conservatives like to attack the Employment Rights Bill, but stopping good employers being undercut by bad is the pro-business thing to do.

Paisley jobcentre runs a “Take a job to work” day, where work coaches look for local employment opportunities and take those suggestions into the jobcentre to match jobseekers with local jobs. Does my hon. Friend agree that that is a good example of local innovation in jobcentres, and would the Government consider sharing that good practice across the rest of the country?

I thank everyone in Paisley who has been working on those practices—it is exactly the kind of innovation we like to see. Under the Conservatives, only one in six employers said they bothered to engage with their local jobcentre, which is exactly what we need to change with our reforms to Jobcentre Plus. I thank everyone in Paisley, but there is much more to do right across the UK.

The previous Government left us with one in eight young people out of work, training or education, and with 2.8 million people out of work due to long-term sickness, not only costing the economy billions more but costing people opportunity, hope and dignity, and now the Conservatives cannot even agree a plan among themselves to address that. Does the Minister agree that the Conservative party is in chaos, while this Government are bringing forward sensible plans to give the country a way forward after the mess the Conservatives left it in?

That was a powerful and long question, and I am glad that Conservative Members listened to every word of it, because they left us 1 million young people not in education, employment or training—that is what a disgrace looks like. What is happening now? We have seen falling numbers of NEETs over the past quarter and the past year.

I call the shadow Secretary of State.

Two weeks ago, the hon. Gentleman’s Government told people they were U-turning on winter fuel payments because the economy is on a “firmer footing”. The next day, the unemployment figures were released, showing that a quarter of a million jobs have been lost since the Chancellor’s job-taxing Budget. The country is now losing 100,000 jobs a month. These figures are worse than even the most pessimistic forecast. Is that what a firm footing looks like to the hon. Gentleman?

A firm footing for economic recovery looks like kicking the Conservative party out of office and growing the economy once again, and that is what we see if we look at the data. The hon. Lady likes to look at one month’s data—well, let us look at it. Data from the Office for National Statistics show that vacancies rose by 27% between April and May. I know the Conservatives want to pretend that everything was wonderful a year ago, but every business and every voter in this country knows that that was not the case.

Honestly, who does the Minister think he is fooling with this spiel? Growth forecasts have been slashed and inflation has surged. What world is he living in? The Government have been in office for a year and people are losing their jobs because of the decisions that they have made. How does he think his “everything’s fine” mantra actually sounds to one of the people who have lost their jobs or to a business facing a tax bill that it cannot afford? Has the Secretary of State even told her Back Benchers, who will be strong-armed into voting for cuts next week, that the welfare cuts Bill that we will be debating will get a grand total of zero people into work, according to the Government’s own impact assessment?

The hon. Lady asks about what is going on with the economy. What is going on is that we have had four rate cuts over the past year. What is going on is that we have signed three trade deals over the past year. What is going on is that employment has gone up and inactivity has gone down. I know that the Opposition love to latch on to one month’s data, but let us look at the whole period of this Government: wages have increased by more under this party in the past 10 months than they did in the first 10 years of the Conservative Government.