Experts advising the UK Government on how to tackle the ‘greatest employment challenge for a generation’ have met the Work and Pensions Secretary for the first time.
The new Labour Market Advisory Board – appointed by Work and Pensions Secretary Liz Kendall MP – is made up of labour market experts from across business, industrial relations and academia.
At its first meeting, members offered new approaches to shape government work on economic inactivity, tackling the root causes for people remaining out of work such as poor physical and mental health, and how the group can help the UK Government reach its ambition of an 80% employment rate.
The Board will develop new ideas and initiatives for the Work and Pensions Secretary to consider.
The UK is the only G7 country whose employment and inactivity rates haven’t returned to pre-pandemic levels.
Work and Pensions Secretary, Liz Kendall MP, said:
“Spiralling inactivity is the greatest employment challenge for a generation, with a near record 2.8 million people out of work due to long-term sickness.
“Addressing these challenges will take time, but we’re going to fix the foundations of the economy and tackle economic inactivity.
“The board’s knowledge, expertise and insight will help us to rebuild Britain as we deliver our growth mission, drive up opportunity and make every part of the country better off.”
Paul Gregg, Chair of the Labour Market Advisory Board said:
“Having studied the UK’s labour market across several decades, it is clear that the current labour market faces a deep-seated set of challenges.
“We have seen a sharp increase in economic inactivity and long-term sickness, most notably in our young people post-pandemic. Further, real wage growth has been heavily supressed for 15 years hitting living standards and government tax revenues. Reversing these trends will be key to ensuring the long-term prosperity of the UK’s labour market.
“I look forward to working with members of the board and the Secretary of State to support her vision for growth and examining positive solutions to address inactivity and harness the true potential of the UK’s labour market.”
The Secretary of State is also expected to outline her plans to devolve power to local areas so they can tackle inactivity with bespoke work, health, and skills plans, which are expected in a White Paper in the autumn.
It will also include plans for a new youth guarantee for 18-21-year-olds, and the overhauling of jobcentres by merging them with the National Careers service.
James Cockett, senior labour market economist for the CIPD, the professional body for HR and people development, said:
“The Government is right in saying they have the ‘greatest employment challenge for a generation’ with a joined-up policy approach required to tackle labour market inactivity, particularly high levels of long-term sickness.
“There is also a need for the Government to go further than its proposed Youth Guarantee for 18-21 year olds. There is a strong case for the introduction of an Apprenticeship Guarantee to provide a guaranteed level 2 or 3 apprenticeship for 16-24 year olds. This would help address the collapse in apprenticeship provision among young people in recent years and provide more routes into work.”
