Youth Unemployment

Joy Morrissey Excerpts

Wednesday 28th January 2026 Commons Chamber

[Joy Morrissey (Beaconsfield) (Con)]

I appreciate that all Members across the House care about youth unemployment, but the way it is tackled is very different depending on from which party a Member hails.

We have rising youth unemployment, and the issue is taxation. Our businesses are facing an increased national insurance rate, and business rates on the high street are high. Hospitality and retail businesses are being taxed to the point where they cannot take on another employee, and usually that employee is a young person who is being given their first opportunity. The Government are making the job market so rigid and protecting workers’ rights to the point where there will be no jobs available by the time young people are looking to get into employment. The Government are making it so restrictive that businesses do not want to take on new employees. First, they are not able to afford to and, secondly, there is so much restriction when they go to hire a new employee that they just will not do it. That will not be dealt with, and youth unemployment will continue to rise.

I have had a young person come to me who has just finished a degree in mathematics from Cambridge but cannot find a job. Someone else’s son did a law degree but cannot find a job. I have people from every sector coming to me with their concerns: businesses are saying that they cannot take on a new employee because they simply cannot afford it, and parents are desperate to get their child into any job.

As my right hon. Friend the Member for East Hampshire (Damian Hinds) said, apprenticeships and zero-hours contracts were an opportunity for a young person to get their first job, for example in hospitality or retail. Working in those environments, with other people, teaches young people lessons that they can take forward in life to other jobs and opportunities. That is what young people need.

I would like to provide some historical context to the Minister’s speech. In 2010, the Conservatives inherited from Labour youth unemployment at 20%, and nearly a million young people were out of work. Before the pandemic hit in 2020, the Conservatives had nearly halved it to just 12%. When we left office in 2024, despite the pandemic’s effects, the level was just 13%. That was the result of our fixing the economy, driving up education standards and making work pay.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I am really impressed by how the hon. Lady is representing her constituents and businesses. I loved her summary of recent youth unemployment levels, but the reality is that when we came into power in 2024 youth unemployment was rising. We cannot blame the problems we are facing now on the current Government. One could argue that we are not making it better and that we could do more, but youth unemployment was rising at the time that we came into power and had been for many years.

[Joy Morrissey]

That intervention leads me to the statistics that we have today. Nearly 16% of young people—that is 729,000—are out of work. That figure is a staggering 103,000 higher than a year ago, and a further 2.88 million young people are economically inactive. Just to point out: that is more than when Labour took over from us. That is statistically accurate.

[Dr Arthur]

I accept that youth unemployment is higher now than when we took office. I regret that and it is great to see that the Government are doing more on it. The point I was making was that when we took office, youth unemployment was rising and it was rising fast. It has continued to rise, but it was rising then. That is my point.

[Joy Morrissey]

This is a youth unemployment crisis of Labour’s own making. It is because of the national insurance tax hikes and the restrictions on business—

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Will the hon. Lady give way?

[Joy Morrissey]

I will make some progress. The crisis will continue to be a problem that this Government face—mark my words.

Turning to my constituency of Beaconsfield, Marlow and the South Bucks villages, we have an incredible restaurant in Beaconsfield called The Greyhound. I strongly urge everyone to go to eat there. It has a wonderful apprenticeship programme that helps young people get their first job in hospitality, providing them with an incredible opportunity. I went to speak to them and they said, “This is great. I wasn’t enjoying school and I now have an opportunity for a career in hospitality. I am trained in every level of hospitality.” They gave me a tour of the wine cellar and everything in between. They love it and are passionate about it.

The Greyhound tells me, however, that many businesses, and not just The Greyhound, cannot continue their apprenticeship programme because of the backdrop of the national insurance tax raid and an eye-watering hike in their business rates. They simply cannot continue the very successful programme that has changed young people’s lives.

This is a Government who failed to listen to the urgent calls of businesses to stop their Employment Rights Act, which will destroy jobs while creating rights for jobs that will no longer exist. Young people need businesses to be able to create jobs for them and not be hamstrung by tax and employment policies that force employers to curtail opportunity. This is also a Government who sow utter chaos in our apprenticeship system at every turn.

With Labour Governments, rising youth unemployment —indeed, all unemployment—becomes a sad inevitability. Yet different choices can change that course for our young people and create a better future. Lowering business taxes to enable businesses to create jobs will help tackle the problem, as will putting evidence before ideology in education so that standards rise and do not collapse, and scrapping business rates on the high street. We will see many people coming back, many businesses coming back and many young people being employed. It will be a tremendous win for this Government if they try that.

The Government should also try reducing the tax burden for anybody under the age of 25. If they scrap the national insurance contribution for under-25s, this Government will see a tremendous rise in young people taking their first job with a business, because the risk is reduced for that business. Instead, we are forcing over-regulation on to businesses, crippling and closing them, and curtailing opportunities for young people. We should create an apprenticeship system built on aspiration that is about employment choice and stability, so that we continue to build on the great work that had already started and give young people an opportunity to get their first job and start their career. That is the future our young people deserve.