Why Britain isn't working - with Alison McGovern, Minister of State for Employment
Feb 21, 2025
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Alison McGovern, the Minister of State for Employment, dives into Britain's ongoing employment crisis, where 9 million working-age individuals remain jobless. She discusses alarming youth unemployment, with over a million disengaged from education or training. Mental health's impact on prolonged unemployment is critically explored, along with the need for welfare reforms to enhance local job opportunities. McGovern emphasizes the importance of supportive workplace environments and cooperative efforts between employers and government to promote improved employee rights.
The discussion highlights the urgent need to address barriers preventing youth engagement in the workforce, particularly after the pandemic's impact.
Geographical disparities contribute to varying employment outcomes, necessitating localized support and revitalization of job markets in disadvantaged regions.
Deep dives
Understanding Employment Challenges in the UK
The discussion outlines the complexity of unemployment and economic inactivity in the UK, emphasizing that while traditional unemployment rates are low, a significant number of individuals face barriers that prevent them from entering the workforce. The Employment Minister highlights the alarming situation of nearly a million young people who are neither in education nor employment, raising concerns over their long-term prospects and mental health issues. The podcast illustrates that economic inactivity, particularly among younger demographics, is a pressing issue that has worsened since the pandemic, affecting their transition into the job market. Addressing these barriers is deemed crucial for ensuring that this population receives the necessary support to pursue available employment opportunities.
Geographical Disparities in Labor Markets
The conversation reveals how geographical disparities contribute to varying employment outcomes across different regions of the UK, with some areas experiencing higher unemployment due to limited job opportunities. The discussion highlights that regions with a poor quality job market before the pandemic have struggled to recover, leading to significant economic and health-related challenges. The Employment Minister notes that deindustrialization has left deep scars in certain areas, resulting in systemic issues that are tied to both health and housing. Policy adjustments are needed to address these disparities through localized support and revitalizing job markets to bring about economic growth in less advantaged regions.
Mental Health As a Barrier to Employment
Mental health is presented as a significant barrier to employment, with recent statistics revealing that a substantial proportion of individuals claiming health-related benefits cite mental health conditions as their primary issue. The podcast indicates that mental health challenges can be exacerbated by negative workplace environments, leading to a cycle where individuals feel discouraged from seeking employment. There is a call for businesses to broaden their understanding of mental health in the workplace, emphasizing that supportive management and a positive work culture can significantly enhance employee wellbeing. Furthermore, the conversation underscores the importance of integrating mental health support into employment services, acknowledging that work can play a vital role in recovery for those with serious mental health conditions.
The number of working age people out of work in Britain 2010 was around 9 million. In 2025? Around 9 million. But why is worklessness in Britain now deemed a crisis, and what can the government do to fix this?
Will Dunn, the New Statesman's business editor, is joined by Alison McGovern, Minister of State for Employment.
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