New Government: What are Labour’s plans for unemployment?

Was getting unemployed people into employment a key priority for the Conservative Government? Attempts included the New Back to Work Plan, former Prime Minister Rishi Sunak’s promise to tackle what he called ‘sick-note culture’, and choices for the Spring Budget in 2023, with the announcement of a £7 billion Employment package. However, despite policy initiatives, unemployment levels in the UK continue to be high.

Why is the employment ‘epidemic’ a growing problem, despite such initiatives?

According to the Office for National Statistics (ONS), 4.4% of people were unemployed between February and April 2024, equivalent to 1.44m people. Issues many unemployed are up against – long-term sickness, mental health problems, and early retirement, or caring responsibilities, inabilitities to find and retain jobs due to labour market demands, or gaps in skills and experiences required.

The problem of unemployment is growing. In most of the public sectors, such as health, social care, education, and the police force, there is a shortage of staff. Meanwhile, the Confederation of British Industry found that 38% of businesses reported that labour shortages were holding back their ability to invest and grow.

A look back at Conservative Government actions on unemployment

The New Back to Work Plan included a promise to implement tougher benefit sanctions for those not actively looking for work, trial possible reforms for the fit note process to make it easier and quicker for people to get specialised work and health support, and the launching of the WorkWell service.

Additionally, in April 2024, former Prime Minister Sunak gave a speech at the Centre for Social Justice (CSJ) on eliminating ‘sick note culture’, claiming it as a ‘lifestyle choice’ for those capable of working. Sunak’s intention to strip away the power GPs had to give sick notes sparked outrage within the charity and welfare sector, with the British Psychological Society stating that ‘the Prime Minister is taking the approach of attempting to minimise the mental health challenges […] The government should be prepared to invest the proper funds into mental health services.’

Labour’s plans to tackle the unemployment issue

With a new Labour Government established, with a different vision and different priorities, what is being said in regard to the unemployment epidemic? During the Labour campaigning period, the party promised a major programme of reform to support more people into work and bring the benefits bill down. In their manifesto, Labour has made ambitious promises, including reforming employment support with a system underpinned by rights and responsibilities. Furthermore, they have also stressed the importance of bringing Jobcentre Plus and the National Careers Service together to provide a national jobs and careers service.

In addition, Labour has made promises to help those with illnesses and disability into work, as they are more likely to face discrimination and structural barriers. Labour has promised to devolve funding so local areas can shape a joined-up work, health, and skills offer for local people. Moreover, parallel to the Conservative Government, Labour also proposed a Back to Work Plan within their first week of being in office. They plan to create new national jobs and career services; develop new work, health, and skills plans for the economically inactive, led by Mayors and local areas; and to introduce a Youth Guarantee to create more opportunities for training, apprenticeships, or help to find work for all young people aged 18-21 years old.

This growing epidemic needs to be at the heart of the welfare agenda for the new Government, given the pressures it is putting on public sector workers. Whether the initiatives announced so far can bring down the number of unemployed people, we are yet to discover.

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