Work and pensions secretary Liz Kendall has said the new Labour government’s Back to Work plan will include a new national jobs and careers service, a youth guarantee, and local plans to tackle economic inactivity.
Government estimates suggest 9.4 million people are economically inactive, including 2.8 million with a long-term health condition and 900,000 young people who are not in education, employment or training.
Kendall will say at a visit to a Jobcentre in Leeds today: “Economic inactivity is holding Britain back – it’s bad for people, it’s bad for businesses, and it’s bad for growth.
Back to Work plan
Unemployment unexpectedly climbs as wage growth holds
Labour launches ‘pro-business, pro-worker’ manifesto
Most employers back guaranteed apprenticeships for young people
“We’ll create more good jobs, make work pay, transform skills, and overhaul jobcentres, alongside action to tackle the root causes of worklessness including poor physical and mental health.
“Change delivered by local areas for local people, driving growth and delivering opportunity and prosperity to everyone, wherever they live.”
The one of the three pillars of the Back to Work plan involves merging Jobcentre Plus and the National Careers Service to form a national jobs and careers service, which the Department for Work and Pensions suggests would get more people into work and to support those seeking better job opportunities and pay.
Mayors and local authorities will play a prominent role in developing plans to tackle economic inactivity and create jobs in their areas. They will receive devolved powers to shape a joined-up work, health, and skills offer that suits the needs of their populations.
The final pillar is a Youth Guarantee, which will create more opportunities for training, apprenticeships or help finding work for all people aged 18-21 years old.
Matthew Percival, future of work and skills director at the CBI, said it was encouraging to see the new government prioritise addressing economic inactivity.
“Not only will tackling inactivity help firms to access the skills they need to grow and invest, but it will also ensure that more people can experience the financial benefits and security of work,” he said.
“It is through partnerships between business and government that most people will be supported back to work. Government can make it easier for businesses to invest in the health and wellbeing of their people by updating tax rules, starting with making employee assistance programmes tax free.”
Recruitment and Employment Confederation deputy chief executive Kate Shoesmith also encouraged the government to approach the issue in partnership with businesses.
“REC’s partnership with Maximus employability services and local [jobcentres] has found work for more than 2,000 people, and we had one of our best placement rates in June this year – in what has been an otherwise flat labour market,” she said.
“We urge the government to use the expertise of the recruitment industry in local areas to support any reforms. A refreshed careers and jobs advisory service needs to be grounded in the day-to-day realities of a local jobs market; from our work we know that many recruiters, employers and educators would be willing to offer their expertise, skills and drive to make a difference to worklessness in their respective regions.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Recruitment and resourcing opportunities on Personnel Today
Browse more recruitment and resourcing jobs
