House of Commons - Education and Employment

Select Committee on Education and Employment Fourth Report

WHICH GROUPS ARE MOST AFFECTED?

42. There was general agreement that the groups most affected by the presence of jobs gaps were low-skilled older men, those with low levels of basic skills, those with low levels of social and communication skills, and people from some ethnic minority communities.[99] The impact of jobs gaps on older men is not captured in the unemployment data. The ILO unemployment rate for men over 50 is 5.3 per cent, which is below the national average.[100] Table 2 shows that employment rates are particularly low for older men in northern regions, the West Midlands, Scotland and Wales. These figures point to high levels of economic inactivity among this group. Survey work suggests that many of those who are inactive are not so by choice, are reliant on benefits and would still like a job, "but hardly any now think there is a realistic chance of one".[101] We recognise that there are many reasons for the inactivity of older men. In this report we focus mainly on the level of demand in local labour markets, but in future inquiries we hope to explore in greater depth the impact of company recruitment practices on this group and the issue of age discrimination.

Table 2. Regional Employment Rates of Men aged 50-64

REGION	EMPLOYMENT RATE
South East	78.5
East	75.6
South West	75.1
East Midlands	71.2
London	70.3
West Midlands	69.9
Yorkshire and Humber	64.4
North West	62.8
Scotland	61.7
Wales	60.5
North East	56.2

Source: First Release Labour Market Statistics, ONS, November 1999 Table 2

43. In paragraph 23 we highlighted the fact that those with low levels of skills are less likely to obtain work in areas displaying a low demand for labour. The Trades Union Congress (TUC) told us that the share of the population with qualifications at least at NVQ3 was lower in some of the most deprived areas. Drawing on Labour Force Survey data, it showed that 42 per cent of the working age population in Southern England had qualifications of NVQ3 or above compared to 32 per cent in the West Midlands, and around 35 per cent in the North West, the North East and Wales.[102] The Social Exclusion Unit was concerned about the above average concentrations of numeracy and literacy problems in the most deprived areas.[103] The Minister for Employment told us that in areas like Sheffield four out of ten participants on the New Deal for Young People had serious problems with basic skills.[104] The Minister for Employment stated that the Government must "aspire to saying that nobody will leave the New Deal for Young People illiterate or innumerate".[105] We welcome this commitment and we urge the Government to bring forward detailed proposals as early as possible on how this could be achieved.

44. The TUC pointed out that the most deprived local authority areas have a disproportionate share of black people. Most ethnic minority groups have much higher unemployment rates and lower participation rates than the average for the population,[106] although in the ethnic minority population there is a wide range of employment outcomes.[107] In Hackney the unemployment rate in ethnic minority communities is 30 per cent.[108] We were told by Black CARD that, in addition to the problem of racism, ethnic minority communities did not have good links with employers. This meant that many job seekers from ethnic minority communities had little knowledge of employer expectations.[109] The Policy Action Team on Jobs acknowledged the racism faced by people from ethnic minority communities seeking employment and recommended that the Government should undertake a range of actions to promote equal opportunities and to ensure that labour market programmes provide equality of outcomes for all participants. The Government has given a commitment to introducing "tough new race equality targets for the New Deal". The Chancellor of the Exchequer announced in the Pre-Budget Statement that the Government had decided to establish an Intermediaries Fund covering eleven innercity areas, to support private and voluntary sector organisations capable of helping people into work within the framework of welfare to work programmes.[110] We recommend that the Government should actively encourage organisations from ethnic minority communities to develop bids for the Intermediaries Fund.