The Department for Work and Pensions (DWP) is set to release a new White Paper this Autumn aiming to boost employment by getting more unemployed and long-term sick people back into the workforce.
According to Daily Record, experts advising the Labour Government on how to tackle the ‘greatest employment challenge for a generation’ met with the Work and Pensions Secretary for the first time on Monday.
New DWP Labour Market Advisory Board to Address Economic Inactivity and Unemployment Challenges
The new Labour Market Advisory Board, selected by Liz Kendall MP the Work and Pensions Secretary, includes experts from across business, industrial relations and academia. During its initial meeting, members suggested new schemes to address government work on unemployment, tackling the main reasons that keep people from joining the workforce, including physical and mental health issues, and the ways in which the group can provide its assistance to the government in order to reach its 80% employment goal.
The board will come up with new initiatives for the Work and Pensions Secretary to think about as she aspires to bring down the economic inactivity rates, as the UK is the only G7 country whose employment and inactivity levels haven’t rebounded to pre-pandemic rates.
Work and Pensions Secretary, Liz Kendall MP, stated: “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.”
DWP Board Targets Health-Related Economic Inactivity
The Board’s initial meeting will study the effect that physical and mental health issues have on inactivity and the methods the Government can employ to push more people into the workforce.
According to the Official for National Statistics’ latest figures released on Tuesday, Scotland’s unemployment rates for people aged 16 and above was 4.2% between May and July 2024. This was 0.5% down on the last quarter but over the UK-wide unemployment rate of 4.1%
Paul Gregg, Chair of the Labour Market Advisory Board, stated: “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 also anticipated to release her plans to delegate power to local areas so they can address unemployment with adequate work, health, and skills plans, which are expected to be released in a White Paper this autumn.
