Youth Unemployment

Graham Stuart Excerpts

Wednesday 9th November 2011 Commons Chamber

[Mr Byrne]

Let me just answer the hon. Gentleman’s question. He will know that the worst global recession since the 1920s was under way, yet despite that, before the election, youth unemployment was coming down. He must answer this question: how is it that this Government are doing so well, when since the beginning of this year long-term youth unemployment has risen by 68%? Hundreds of constituencies around the country have seen long-term youth unemployment double. If he has the right plan, can he explain exactly what is going so well?

[Mr Graham Stuart (Beverley and Holderness) (Con)]

As we know, the scar of unemployment on young people lasts through their lifetime; it has a tremendously negative impact. I do not think the right hon. Gentleman is getting the tone of this debate correct. In truth, in the years of economic boom on his watch, youth unemployment stayed resolutely high before peaking and rising following the crisis. We need to look at what we can do better to understand the youth employment market. He must at least acknowledge the steps that this Government are taking on training and apprenticeships. It may not be enough, but let us not use this as a party political football; let us try to be constructive.

[Mr Byrne]

I am grateful, at last, for a consensual note. [Laughter.] The hon. Gentleman’s hon. Friends might laugh, but the fact that long-term youth unemployment in his constituency is up by 48% this year is not a laughing matter. This debate is an opportunity for us to interrogate this Government on what they are doing to get youth unemployment down and how, ahead of the autumn statement, they should negotiate with the Chancellor for more resources to get our young people back to work.

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[Chris Grayling]

My hon. Friend is right; I am baffled as well. This is working far better than we expected and provides a significant piece of evidence to show that if we can get a young person into the workplace quickly to get them their initial experience, it can make a real difference. I am proud of what that scheme has achieved, and I would like to pay tribute to members of the Jobcentre Plus team up and down the country who are working with employers to find those work experience opportunities.

I had occasion a couple of weeks ago to meet a group of young people who are actively looking to try to get work experience opportunities because they believe it is a real route for young people to get into employment. We are now working with that campaign to make sure we help all the young people involved to get work experience opportunities. We are, as I say, a Department providing work experience opportunities to a large number of young people, and I believe this is an important ingredient of the support we provide to those who have just entered the labour market, who are trying to get into work after a short period out of work, to make a difference for that group.

[Mr Graham Stuart]

Does my right hon. Friend agree that a generation of young people were betrayed by vocational qualifications that were inappropriate, as the Wolf report indicated earlier this year? It is ironic to see the shadow Chancellor of the Exchequer among the Front-Bench team, because when he came before the Select Committee, which used to be chaired by the hon. Member for Huddersfield (Mr Sheerman), he refused to listen when he was told again and again that the diploma was going to be a hugely expensive mistake. He refused to listen, spent millions of pounds of public money and let down young people with a diploma programme that was not fit for purpose.

[Chris Grayling]

My hon. Friend has made a good point. To be honest, I do not know why any of us listens to this lot. They were a disaster in Government, and the country is well rid of them. What we are trying to do now is repair the damage caused by 13 years of mismanagement.

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[Mark Simmonds (Boston and Skegness) (Con)]

It is a pleasure to follow the hon. Member for Wansbeck (Ian Lavery), but the only point on which I agreed with him was when he said that this is a very serious issue, and that we need an extremely detailed and fundamental rethink of how we address unemployment.

Every single person who is unemployed, whether young, middle-aged or old, experiences a personal tragedy, and we need to do as much as we possibly can to address the situation, but the fundamental point is that we will not create jobs unless we have macro-economic stability.

To get macro-economic stability, we have to get the deficit under control, and the coalition Government must not change course. They must stick to the course that they have set, otherwise the economy will not grow, because controlling the structural deficit is a pre requisite of economic growth, not a substitute for it.

Of course there is growing unemployment, but youth unemployment grew by 40% between 1997 and 2010, so it is not a new problem or issue. Indeed, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), who speaks for the Opposition on this matter, made surreptitious use of statistics, with some of those that he gave painting a wholly inaccurate picture. Interestingly his only solution to the problem was more tax and more spend, the formula that clearly did not work under 13 years of the Labour party in government.

[Mr Graham Stuart]

Is it not true that in Hull and other cities throughout the country, the previous Government ignored youth unemployment, which stayed steady even as the general economy boomed? The truth is that on too many estates the Labour party abandoned people, threw them on welfare and did not provide them with the employment or education that they needed to better themselves?

[Mark Simmonds]

My hon. Friend is absolutely right, and I think I am correct in saying that 97% of current youth unemployment was inherited by this Government from the Labour Administration.

I have three or four suggestions for what the Government might do in addition to the excellent job that they are already doing. The first suggestion is to provide a greater emphasis on lifelong learning through not just traditional learning theatres, but online learning in particular. Secondly, the costs to, and regulations on, businesses must be reduced. For example, businesses are being used for informal tax gathering, which is highly regressive and has a disproportionate impact on small and medium-sized enterprises, thereby inhibiting their ability to create jobs. There needs to be a close look at exempting businesses from a raft of regulations and bureaucracy which has a negative impact on their ability to create jobs. We must also find mechanisms—I hope the Chancellor is looking at this—to incentivise businesses to invest, to create wealth and, therefore, to create jobs for young people and for others.

Owing to the long-term nature of the problem, the education system clearly fails far too many young people. It is clear also from the rise in youth unemployment, which began long before the current economic crisis, that the education system did not meet employers’ needs, but the Minister for Further Education, Skills and Lifelong Learning, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) is doing an excellent job of trying to make businesses and education link up and perform in that way.

The Government are absolutely right on their key policy areas, such as rolling out broadband to enable people to engage with technological businesses and innovation, and increasing the Work programme. It is absolutely right to involve independent sector providers to deliver personalised help. There is significant evidence in my constituency that the work providers and the Work programme are getting jobs for people whom the state structures had failed for up to 18 months beforehand. My hon. Friend is absolutely right to deliver improved apprenticeships. In my constituency they are up 67% this year, and in the east midlands the figure is 60%. They are significant achievements, and my hon. Friend should rightly be proud of them.

The introduction of university technical colleges is absolutely right, and I hope that there will be many more of them. Then there is the new enterprise allowance and the link between volunteering and work experience. My hon. Friend the Member for Brigg and Goole (Andrew Percy) was right that it is important for people to get something on their CVs. A link with the voluntary sector may enable that to happen. The Government are on exactly the right lines. They need to continue and they must not be deterred from controlling the structural deficit.