Youth Unemployment

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 19 October 2009.

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Photo of Andrew Robathan Andrew Robathan Opposition Deputy Chief Whip (Commons) 2:30, 19 October 2009

How many young people between the ages of 18 and 24 were unemployed on (a) the latest date for which figures are available and (b) the equivalent date in 1997.

Photo of Yvette Cooper Yvette Cooper The Secretary of State for Work and Pensions

The youth claimant count rate for September 2009, in the middle of a recession, stands at 5 per cent., the same rate as in September 1997 when the economy was growing. The latest figures show 469,600 18 to 24-year-olds on jobseeker's allowance and 9,800 of them on it over six months. The equivalent figures for September '97 were 385,000 on JSA and 65,000 on it over 12 months, and for September '93, in the middle of the last recession, the figures were 805,000 on JSA and 209,900 in receipt of it over 12 months.

Photo of Andrew Robathan Andrew Robathan Opposition Deputy Chief Whip (Commons)

I am not entirely sure that the Secretary of State's figures add up. My memory is getting a bit hazy as I get older, but I seem to recall one of the Labour pledges in 1997 was to reduce youth unemployment through the new deal. That figure is now up to almost 1 million, which is the highest rate ever-the Secretary of State has failed to mention any numbers in that regard. In fact, youth unemployment has been rising since 2005 when I thought we were booming, and not bust as we are now.

Photo of Yvette Cooper Yvette Cooper The Secretary of State for Work and Pensions

If the hon. Gentleman wants to discover what the figures are, I refer him to the Office for National Statistics. I should also like to point out to him the situation in the 1990s, before the introduction of the new deal for young people, when more than 200,000 young people were on the dole for over a year at the peak of the then recession. Today, that figure stands at fewer than 10,000 young people. Youth unemployment is rising in the middle of a recession, as young people are being affected as a result of the world recession and because of that problem we are increasing support, including an investment of £1 billion in more than 100,000 youth jobs, which the hon. Gentleman's Front-Bench colleagues oppose.

Photo of Bob Spink Bob Spink Independent, Castle Point

I congratulate the Secretary of State on bringing forward schemes such as Backing Young Britain, as we need to focus on that. However, may I ask her to look carefully at some of the schemes that restrict entrance to new jobs to young people who have been employed for a certain amount of time, and which may therefore prevent young people who have not been unemployed but who have been working very hard picking up specific skills, such as in sport and leisure, from taking up key jobs? Will she make sure that such children are not disadvantaged?

Photo of Yvette Cooper Yvette Cooper The Secretary of State for Work and Pensions

The hon. Gentleman is right that part of the purpose of the Backing Young Britain campaign is to provide young people with support from the very moment they leave education or lose a job, so we can get them back into work as quickly as possible. A range of support is available for young people at all stages. I think it is also right to provide additional support for young people who have been out of work for many months. We have therefore introduced a guarantee to ensure that no young person should be out of work and on the dole for more than 12 months, because we need to prevent long-term unemployment that could scar them for many years to come.

Photo of Theresa May Theresa May Shadow Minister (Women), Shadow Secretary of State for Work and Pensions

I have to say to the Secretary of State that her complacency about youth unemployment is breathtaking. Under this Labour Government youth unemployment has reached a record high. One in five young people cannot find a job and we have the highest level of youth unemployment in Europe. At the beginning of a person's working life, any period of unemployment can be devastating. Young people need help to get them into a job, so why are the Government making them wait 12 months before giving them that help?

Photo of Yvette Cooper Yvette Cooper The Secretary of State for Work and Pensions

The right hon. Lady's claim is nonsense. As I made clear in answer to the previous question, we are increasing support by providing additional help for young people from the very moment when they lose their job or leave education. We are expanding the amount of available training and support, and we are investing more than £1 billion in youth jobs, which Opposition Members still oppose. Their stance is baffling. Councils and housing associations across the country all support creating jobs for young people so that they are never again abandoned to long-term unemployment, as they were by the right hon. Lady's party in the '80s and '90s. We think it is right to keep investing to help young people get back into work; her party just wants to pull the plug.

Photo of Theresa May Theresa May Shadow Minister (Women), Shadow Secretary of State for Work and Pensions

The Secretary of State talks about extra help being given to young people at an earlier time in their unemployment, but the take-up figures for the young person's guarantee show that only one in 136 young people is taking up the six-month offer; that is 1,550 out of 207,000 young people who have been unemployed for the requisite period of time. Is it not the case that this Government announce idea after idea to grab a headline, but are failing to give the real help that young people need? Is not now just the time for the Government to accept that the real help young people need will come from the Conservatives through our policy of referring young people to welfare-to-work providers after six months?

Photo of Yvette Cooper Yvette Cooper The Secretary of State for Work and Pensions

I think young people should be terrified at the prospect of help from the Conservatives, when the right hon. Lady's party continues to propose cutting £5 billion from the support for the unemployed and wants to cut funding to the economy in the middle of a recession, something that Professor Blanchflower, formerly of the Bank of England, says would push unemployment up to 5 million. That would be devastating for young people. We should offer support early on and throughout any young person's unemployment, and month after month keep increasing that support. That is what will get young people back into jobs.