The UK’s Employment Minister has vowed to transform the job market to provide life-changing support for the so-called ‘lockdown generation’, a group hit hardest by the pandemic. Alison McGovern, in her first speech since taking office, announced significant reforms to address youth unemployment and the growing number of economically inactive young people.
Speaking at the launch of a report by the Institute for Employment Studies (IES), McGovern highlighted a troubling rise in youth unemployment and long-term sickness. The number of young people out of work due to illness has surged by 29% since the pandemic, with nearly 900,000 16-24-year-olds neither in education, employment, nor training. In addition, around 600,000 young people are now unemployed, a figure that is 63,000 higher than before the pandemic.
The Minister described these figures as alarming and pledged to end the cycle of what she termed the “obsession with welfare,” instead focusing on helping people back into the workforce. McGovern argued that the current situation mirrors past periods of mass unemployment, with over 2.8 million people currently unable to work due to long-term illness and more than nine million classified as economically inactive.
She criticised what she sees as a broken labour market, where businesses are desperate for staff while foodbank usage continues to rise. “The lockdown generation has been failed,” McGovern said. “They’ve been left without the support and opportunities to find, secure, and progress in work. It’s a dire situation we’re determined to fix.”
Major Employment Reforms
McGovern announced the government’s upcoming Get Britain Working White Paper, set to be unveiled in the Autumn, which aims to tackle these deep-seated issues by overhauling jobcentres, devolving employment powers to local authorities, and introducing a Youth Guarantee. The Youth Guarantee will provide work opportunities, apprenticeships, and skills training to young people across the UK.
“We’re determined to turn the page on years of failure. Our plan will get young people the support they need to enter the workforce, learn new skills, and build a future,” McGovern added.
The reforms are part of the government’s broader strategy to boost economic growth, with the Prime Minister reiterating his ambition for the UK to lead the G7 in sustained growth. McGovern’s announcement comes amid increasing calls for the government to take action to address youth unemployment and inactivity, which the IES report describes as an urgent crisis. The report also calls for a clearer separation between employment support and social security, noting that the UK’s employment services are underutilised compared to other European countries.
Tackling the Sickness Crisis
The issue of long-term sickness among young people is particularly pressing, with the number of 16-24-year-olds who are inactive due to illness reaching a record high of 237,000. McGovern acknowledged this challenge and outlined government plans to reduce NHS waiting times as part of efforts to improve health outcomes and help young people re-enter the workforce.
The White Paper is expected to set out comprehensive reforms to improve employment services, tackle the root causes of economic inactivity, and support the government’s target of reaching an 80% employment rate.
