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Labour Market Activity
28 February 2023
Lead MP
Jon Ashworth
Debate Type
General Debate
Tags
EconomyEmployment
Other Contributors: 32
At a Glance
Jon Ashworth raised concerns about labour market activity in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The motion calls for the government to address rising unemployment and economic inactivity, particularly among older individuals and those with health issues. It emphasises that recent employment support schemes have underperformed and underspent, leading to low economic growth and falling living standards. The speaker proposes a plan to reform disability benefit assessments, devolve employment support to local areas, and provide targeted help for long-term sick and over-50s.
Stalybridge and Hyde
Reinforces the need for flexible work options tailored to specific needs such as childcare or social care, highlighting that more people are leaving the workforce due to mental health issues. He criticises government policies for failing to provide adequate support.
Arfon
Discusses the high proportion of economically inactive individuals due to mental health problems and emphasises that changing work conditions can address this issue. He suggests better childcare, good wages, and proper jobs.
Blackpool North and Cleveleys
Stresses the importance of reasonable workplace adjustments for disabled employees to maintain their health and stay in work longer. She calls for more publicity about support programmes like Access to Work.
Beth Winter
Lab
Cynon Valley
Highlights concerns over a new pilot requiring claimants to attend daily interviews, potentially discouraging claims due to sanctions and the closure of jobcentres. She supports innovative economic models in her constituency under community wealth building.
Samantha Dixon
Lab
Chester North and Neston
Supports devolving employment support policies and highlights successful work zone initiatives in Cheshire, which enable people to get up the skills escalator. She criticises rigid national contracting.
Mel Stride
Con
Central Devon
Welcomes the debate but does not accept the motion as it denies progress made by the Government and previous Conservative Administrations. Points out that there are 3.7 million more people in employment since 2010, with 2 million being women. Also mentions that long-term unemployment declined by 12% before the pandemic and currently stands at a near-historic low of 3.7%. The Government's intervention during the pandemic proved beneficial for employment levels.
Neil Coyle
Lab
Bermondsey and Old Southwark
Questions why frontline jobcentre staff are being thanked when some jobcentres, like Blackfriars Road in his constituency, are being closed despite their contributions during the pandemic.
Acknowledges the Secretary of State's positive remarks on employment but expresses concern about a fall in self-employment and suggests some tax rules may be hindering this sector.
Erith and Thamesmead
Notes the Government's achievements as mentioned by the Secretary of State but asks for specific actions to address the long waiting list for Access to Work support, suggesting that people are being let down.
Challenges the accuracy of employment figures provided by the Secretary of State, noting a reduction in overall employment due to changes in self-employment post-pandemic. He asks for clarification on the actual number of people employed compared to pre-pandemic levels.
Asks about government proposals to address issues such as lone parents not taking additional hours due to loss of state support, indicating a need for reforms that incentivize employment over welfare dependence.
Warrington North
Questions the fairness of high effective tax rates on individuals receiving universal credit and asks why someone should pay an effective rate as high as 73% when earning additional income, which is higher than what top earners in this country typically pay.
Defends the Conservative party's record on making work pay compared to Labour's past performance and highlights that under Labour, 1.4 million people were trapped in out-of-work benefits for most of the 2000s.
Highlights the importance of adult education in building confidence among those returning to work after a period away and asks the Secretary of State to reconsider plans that could remove non-vocational courses which are crucial for some individuals' re-entry into employment.
Jerome Mayhew
Con
Broadland and Fakenham
Suggests the need for job fairs aimed at encouraging older workers, specifically those over 50, to return to work where appropriate.
Chris Stephens
SNP
Glasgow South West
The SNP will support the motion. The speaker is concerned about the Government's efforts to force people into work and increase their hours, particularly due to the current sanctions regime which is spiralling in terms of issued sanctions. He highlights that DWP staff themselves are facing financial difficulties including reliance on food banks and warns of an impending pilot forcing thousands of UC claimants into compulsory attendance at jobcentres 10 times over a two-week period, which could result in sanctions if not adhered to. The speaker also emphasises the need for employers to be incentivised to allow disabled workers to work from home, as well as addressing issues around insecure work and justifying sanctions on zero-hours contracts.
Jerome Mayhew
Con
Broadland and Fakenham
The Conservative MP argues against the influence of unions on Labour's political philosophy, highlighting that while unions were beneficial in the past to address social immobility, their current focus on member rights rather than broader economic benefits is detrimental. He cites historical data showing how previous Labour Governments left more people unemployed compared to when they took office and highlights the financial support received by Labour from trade unions since 2010 (£142 million excluding individual contributions). Jerome Mayhew emphasises the reduction in youth unemployment from about 20% in 2010 to 11.3% currently, despite a global pandemic, and points out that there are now 1.3 million more disabled people employed than before 2016 under this Government. He also addresses criticism of the universal credit system, noting Labour's desire to replace it with one that traps people in poverty according to Keir Starmer’s statement.
Chris Stephens
Lab
unnamed constituency
Intervening to challenge Jerome Mayhew's critique of trade unions, Chris Stephens argues that higher pay in unionised workplaces is beneficial as it allows people more money to spend and boosts the private sector economy.
Correcting Jerome Mayhew’s reference, Jon Ashworth identifies himself as a right hon. Member.
Barbara Keeley
Lab
Worsley and Eccles South
Critiques the Restart scheme's inefficiency and high costs, points out disincentives in the work capability assessment process that deter people from seeking employment, and draws attention to unpaid carers who are locked out of the labour market due to lack of support. She emphasises the need for reforms proposed by Labour.
North East Fife
Intervenes to express support for Barbara Keeley's work on unpaid carers and agrees that changes in carer’s allowance are necessary to encourage people back into work, suggesting it disincentivizes entry into employment.
Guildford
Highlights the recovery of the UK labour market post-pandemic, with rising employment rates and decreasing economic inactivity. Emphasises government measures to support re-entry into work for those with long-term sickness or caring responsibilities and mental health issues.
Carolyn Harris
Lab
Neath and Swansea East
Keeping women in the workforce during menopause is crucial for productivity, economy, and financial stability. With 13 million perimenopausal and menopausal women across the UK, only 14% are receiving treatment, leading to one in ten leaving their job or reducing hours. Labour has committed to enhance menopause awareness in workplaces when in government.
A new pilot forces universal credit claimants to attend a jobcentre 10 times in two weeks, which is impractical and unreasonable given the current cost of living. Many are sanctioned for not attending or lack the means to do so due to financial constraints. The Government must address issues such as statutory sick pay inadequacies for disabled workers, apply fair work policies on Government contracts, and treat people wanting to work with dignity and respect.
Newcastle upon Tyne North
Childcare issues prevent 1.7 million women from working due to unaffordable childcare costs. This leads to a £30 billion loss in economic productivity and rising out-of-work rates among women aged 50-64 by 15% since 2020. Menopausal symptoms also hinder workplace participation for up to 1 million women annually, impacting business and the economy negatively. NHS waiting lists exacerbate workforce attrition, with over 50s leaving their jobs due to health issues. Hospitality businesses face staff recruitment challenges due to economic pressures post-COVID. Families are facing dire financial straits from mortgage hikes and food inflation.
James Murray
Lab Co-op
Ealing North
Labour's plan aims for highest sustained G7 growth, good jobs and productivity across the UK. The current economic path risks leaving Britain poorer than Poland by 2030 and Romania by 2040 due to poor management and low investment. Labour plans to fix issues through public investment in green prosperity and skills development. Current high vacancies alongside job seekers highlights government failure in supporting those seeking work. In London, economically inactive numbers have risen since the pandemic. Reform of employment support systems is needed with tailored local services for better outcomes.
Andrew Gwynne
Ind
Gorton and Denton
It is a pleasure to contribute to the debate... It is time for the Government to move out of the way and let Labour get on with the job of breaking down the barriers to opportunity and getting our economy firing on all cylinders again.
Matt Western
Lab
Warwick and Leamington
I will start by putting my remarks in the context of our economic situation... They are people who want a general election now.
Warrington North
The Business, Energy and Industrial Strategy Committee, of which I am a member... Without a sector deal for hospitality to maintain those businesses and the millions of jobs within them—without people having the ability to take those jobs up—all these debates about increasing the workforce will be hollow. I call on the Government to address those three challenges, and to look at what they can do to restore the union learning grant, so that we can actually have lifelong learning in this country again.
Alison McGovern
Lab
Birkenhead
McGovern highlights the poor record of Conservative governments regarding unemployment compared to Labour's. She mentions that while official unemployment rates are low, 1.7 million people who want jobs but are not actively looking for them due to various reasons such as childcare issues and illness. She criticises the government’s failure on disability employment targets and care services, arguing that their promises have been empty. McGovern asserts that Conservative policies have led to wasted potential in skills and broken communities across the country.
Guy Opperman
Con
Erith and Thamesmead
The UK labour market remains strong with payroll employment at a record high. However, the Government recognises the need to address economic inactivity and long-term unemployment. The Prime Minister has tasked the Secretary of State to examine workforce participation programmes, focusing on reducing labour market inactivity and encouraging inactive individuals back into employment.
Alan Campbell
Lab
Tynemouth
The number of people out of work and economically inactive is higher than before the pandemic. Thousands of older people have left the labour market, with significant increases in unemployment due to ill health or mental illness. Recent employment support schemes have underperformed and underspent, leading to low economic growth and falling living standards.
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