The Department for Work and Pensions (DWP) is poised to unveil a “groundbreaking” White Paper this Autumn, aimed at returning a greater number of unemployed and long-term sick individuals to the workforce. Officials guiding the Labour Government as it addresses what’s been described as ‘the greatest employment challenge for a generation’ had their first discussion with the Work and Pensions Secretary on Monday.
The newly formed Labour Market Advisory Board, which Labour’s Work and Pensions Secretary Liz Kendall MP has ushered in, is populated with specialists spanning the fields of business, industrial relations, and academia. During the board’s inaugural gathering, participants proffered innovative strategies to underpin government activities focused on economic inactivity.
They addressed potential solutions for the underlying reasons people stay out of the labour market, such as suboptimal physical and mental health conditions, and debated how the collective could support the government’s aim for an 80 per cent employment rate.
Tasked with crafting fresh concepts and initiatives for the Work and Pensions Secretary to evaluate, the board takes on the challenge of reducing economic inactivity figures. Notably, the UK stands alone among G7 nations in not having its employment and inactivity rates rebound to pre-pandemic standings, a challenging legacy bequeathed by its predecessors, reports the Daily Record.
Work and Pensions Secretary, Liz Kendall MP, remarked: “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.”
The inaugural meeting of the Board will focus on the effects of ill-health on joblessness, seeking ways for the Government to assist more individuals toward robust employment.
Latest data released by the Office for National Statistics (ONS) on Tuesday reveals that between May and July this year, the unemployment rate in Scotland for those aged 16 and over stood at 4.2 per cent. This shows a 0.5 percentage point decline from the preceding quarter, albeit it remains slightly higher than the overall UK unemployment rate of 4.1 per cent.
Paul Gregg, who chairs the Labour Market Advisory Board, commented: “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 suppressed 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.”
The Secretary of State is anticipated to reveal her intentions to grant more power to local regions to address inactivity through tailored work, health, and skills plans, set to be featured in an upcoming White Paper in the autumn.
This is also expected to cover the introduction of a new youth promise for individuals aged 18 to 21, along with a transformative approach to jobcentres, integrating them with the National Careers Service.
We can look forward to the White Paper outlining the Plan to Get Britain Working this coming autumn.
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