Youth Unemployment

Lord Bishop of Oxford Excerpts

Thursday 11th September 2025 Lords Chamber

[Baroness Sherlock (Lab)]

I thank my noble friend and pay tribute to him. He was a reforming Minister in the last Labour Government and did lots of work in this area. I am conscious that I learned a lot from him in those days. He is absolutely right that this is both a scandal and a challenge for the economy.

One of the difficulties we have nowadays is trying to work out how we reach young people if they are not engaged in society. I was talking to an experienced youth worker recently, who said that she is worried about the range of young people who are simply off-grid. It is not just that we are not aware of them: they are not on benefits or claiming anything; they are simply disappearing. Part of our job is to go out there and find out where they are. For example, trailblazers in different parts of the country are looking at how you track down young people who are not on our radar and then support them, draw them in and engage them in their spaces.

We are trying to find more creative ways to do this. I have talked to young people for whom school just did not work—they failed or were failed by school. But it is possible that they will engage in different kinds of apprenticeships or skills-based training, and that work experience might draw them back in. Our job is to find these young people, work out what will make the difference for them individually and give it to them.

[The Lord Bishop of Oxford]

My Lords, I too welcome and commend the Minister’s passion and commitment. I recently met around 100 young people, as part of the work our diocese is doing, and their number one concern is the impact of technology and AI on their future jobs. There is now robust research in the United States on the likely impact of AI on entry-level jobs. Are the Government aware of that research and do they intend to commission research on the likely impact on the UK of artificial intelligence and strategies that might emerge?

[Baroness Sherlock (Lab)]

The right reverend Prelate raises a really interesting point, and I am very glad to hear that he is talking to young people individually. I would always be interested to hear more about what they say to him, because I find that I learn a lot more from what young people say than from what anybody else says.

He raised a really important point about AI, which I know is an area in which he does a lot of work. We are starting to witness the impact of AI in the labour market, but there is uncertainty over the scale of that impact, especially over the next four years. The Government are planning against a range of plausible future outcomes. A lot of work is going into this in government. Most forecasters project that, in the end, AI will lead to a net increase in employment but with varying impacts across different sectors and for different people. When you get this kind of change and churn in the labour market, the people who lose out most are those at the margins. Our job is to try to make sure that we give those who would otherwise not succeed the skills to do so. For example, the Government are investing to transform apprenticeships and looking at more shorter courses and ways to give young people a chance to gain skills in new areas, such as digital and AI. We are conscious of it and are very much working on it.