Jobs Market: Wider Economic Implications

Debate between Baroness Sherlock and Lord Mohammed of Tinsley

Thursday 18th December 2025 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, the noble Viscount will know that we have a number of what we call sector work programmes to develop skills and support people into many areas of our economy, including hospitality and retail, and many others. I come back to the fact that there are challenges across the globe. The UK unemployment rate is firmly below the EU 27 average. The UK has the third-highest employment rate among the G7—higher than Canada, the USA, France and Italy. I fully accept that these have been challenging times but there has been a reduction in demand across the globe, for a range of reasons. I am confident that things are looking good. We are seeing, for example, that vacancies have stabilised. We are seeing interest rates coming down and businesses getting more certainty, not least from the fact that we now have an Employment Rights Act.

[Lord Mohammed of Tinsley (LD)]

My Lords—

--- Later in debate ---

[Lord Mohammed of Tinsley (LD)]

My Lords, I am more than happy to speak to Alan Milburn, given my long experience of working with NEETs. The question I will ask the Minister is about His Majesty’s Government having two key priorities. One is around net zero and the other is building 1.5 million homes. I want to know: what is the strategy around young people and apprenticeships? I ask this because I spoke to a young person studying at Sheffield College who is doing an electrician course. He is really stressed out that he is unable to get the apprenticeship course he needs to get properly qualified and contribute to the economy, because otherwise he told me that he will look for a job in McDonald’s.

[Baroness Sherlock (Lab)]

I am not going to diss looking for a job in McDonald’s, but I do not want to see anyone unable to pursue the things that they want to do. The noble Lord is absolutely right. We have invested £600 million in a construction package and are working closely with the industry. We have a strategic relationship team in DWP that works with key sectors to try to make sure, if jobs come on stream, that our people get them. We want young people and people who are not in the labour market to get them—those who are struggling with economic inactivity. I am grateful to him for raising that.