PARLIAMENTARY DEBATE
Unemployment - 27 April 2026 (Commons/Commons Chamber)

The latest unemployment figures published last week show a fall to 4.9% in February, which I am sure the whole House will welcome. Along with growth figures of 0.5% earlier this year, that is more evidence that the economy was heading in the right direction at the beginning of the year. But I have to warn the House that external effects caused by the war in Iran and the rise in energy prices may affect jobs as well as prices in the coming months.

Fylde’s stunning coastline and countryside mean that the hospitality, tourism and leisure industry is at the heart of our local economy. But I have met many businesses that, following the changes to national insurance, have let go so many young people from that industry and are simply not taking on new seasonal staff. Could the Secretary of State update the House on the current trends of unemployment among 18 to 24-year-olds?

I recently joined a successful jobs fair close to the hon. Gentleman’s constituency, where the industries that he mentioned were hiring more people—it was one of the most successful such events that we have seen. I hope that he will welcome the fact that 330,000 more people are in work this year than at this time last year. When it comes to young people, he will of course know that there is a national insurance exemption for employees under 21.

Because of the previous Government’s actions, the number of people not in employment, education or training rose by nearly 250,000 between 2021 and 2024, leaving many hundreds of my constituents among the almost 1 million young people in that situation today. I am glad to see, then, that the Secretary of State is taking action to support young people in Erewash through the youth guarantee. Further to that, will the Secretary of State please explain the measures that his Department is taking to address the decade-long trend of growing youth unemployment?

My hon. Friend will know that the number of young people not in education, employment or training rose by about a quarter of a million in the last three years of the Conservative party’s time in power, but that Government did nothing about it. We are putting in place a youth guarantee that offers training, work experience, subsidised employment and hiring incentives to small and medium-sized employers for both regular jobs and apprenticeships. That is all part of the effort to make sure that young people do not graduate from education to a life on benefits, and that they get the chance in life that a decent job brings.

I call the shadow Secretary of State.

I was disappointed that the Secretary of State did not answer the question put by my hon. Friend the Member for Fylde (Mr Snowden), so let me help him. Unemployment among 18 to 24-year-olds is at 14.3%—that means that one in seven young people is unemployed. There are thousands fewer jobs and thousands fewer vacancies under the right hon. Gentleman’s Government. I speak to young people across the country, who tell me that it is desperately difficult to get a job, and it is no wonder. His Government have made it much harder for businesses to employ people, especially young people.

I appreciate that the Secretary of State may be trying his best with his plethora of work schemes, but they are just a sticking plaster for the damage that the Chancellor has wreaked. Governments do not create jobs; businesses do. His Government need to change tack and back businesses to create opportunities for the next generation. I am on their side—isn’t he? Will he help the Chancellor understand before it is too late?

The hon. Lady neglected to mention that youth unemployment never recovered to levels enjoyed under the last Labour Government at any point during the Conservative party’s time in power; it was exacerbated during their last few years in particular. The difference is that we are responding with the initiatives that I have set before the House today. That is because we believe that work is the best answer and the best opportunity for young people. I will keep going, to give young people hope and opportunity because that is what this Labour Government stand for.