Jobs and the Unemployed

Debate between Jake Berry and Rushanara Ali

Wednesday 7th July 2010 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Thank you for allowing me to speak, Mr Deputy Speaker.

I wanted to speak in this debate because employment is of such great concern in my constituency. It is absolutely vital that we invest in the talent of local people in different areas around the country, and that their talent is not wasted. The hopes and aspirations of people who want to contribute to our economy must not be cast aside in the way that I believe that this Government will do.

In Bethnal Green and Bow, unemployment is just under 11%, significantly higher than the national rate. The experiences of white working-class groups and of ethnic minority groups—especially those of British-Bangladeshi or Somali origin—are particularly challenging. They face the double whammy of trying to find work in difficult circumstances and in a difficult economic climate, but also of the social class barriers, and the ethnic penalties that are well documented by Cabinet Office research.

Unemployment in my constituency is faced by people who live only a stone’s throw from the City and Canary Wharf. They see the wealth and opportunities there, but struggle to reach them. Even during the boom years, unemployment was higher than the national rate, and youth and graduate unemployment were also high. Businesses in the City and Canary Wharf made efforts to recruit people, but not enough. We need the private sector, Government and local agencies to work together to create opportunities, and we need the Government to support those opportunities and enable that sort of cross-organisational working.

We also need the voluntary sector. Through organisations such as City Gateway in my constituency, and with the help of the future jobs fund and the working neighbourhoods fund, it has made enormous progress in trying to get people into work. Funding like that is an enabler, and we need that kind of support if we are to get people into work.

Tower Hamlets has managed to cut unemployment—not enough, but it has made significant progress. The current proposals stand to damage that progress. In my constituency, a lot of positive work is being done across sectors. I hope that this Government will look at ways to enable that to continue.

I am saddened that £1 million of the working neighbourhoods fund has already been cut. That is not a good sign. Figures show that 9.6% of young people are NEETs—that is, not in education, employment or training—and that is too high, but in Tower Hamlets we have managed to reduce that proportion to 6%. That is a fall of 40%, and it could not have happened without help from the Government, or without the September guarantee and the future jobs fund.

I remind the House that 8,500 young people across London managed to stay off the dole queue thanks to the help of Government interventions. I also appeal to the Government not to delay the introduction of the programme of setting up 50,000 apprenticeships that has been announced. If they do delay, it will be a case of “too little, too late”: we cannot afford to waste the talent and potential of people in this country.

The Conservative mantra in the 1980s was, “If it’s not hurting, it’s not working.” The unemployment rate then was very high, but that is not a price that is ever worth paying. I hope that people across the House recognise that. Research by Cardiff university found that unemployment was associated with a doubling of the suicide rate, so let us not forget the kind of damage that can be done, especially by unemployment of men.

[Jake Berry]

Does the hon. Lady agree that, after 13 years of a Labour Government, it is a disgrace that one in five people under the age of 24 are out of work? Does she think that has been a price worth paying for 13 years of a Labour Government?

[Rushanara Ali]

The Labour Government made every attempt to help people into work. There are great challenges and complex circumstances in helping and enabling people to work, but at least the Labour Government did not shirk their responsibility. At least they tried to support people, as Labour Governments will always do. I appeal to the coalition Government to try to provide support, so that people can achieve their potential. This is not about handouts; it is about giving a helping hand. That is the progressive route to supporting communities.