HC Deb 24 January 1996 vol 270 cc336-7
3. Mrs. Mahon

To ask the Secretary of State for Education and Employment what estimate she has made of the number of people currently in temporary positions because they cannot find a permanent job. [9417]

Mrs. Gillian Shephard

Around 650,000.

Mrs. Mahon

Is the Secretary of State aware that, when the Courage brewery in my constituency closes, with a loss of 200 jobs, only part-time insecure jobs will be on offer to those workers—and not to many of them? Has she any idea how devastating it is for people who want to make a stake in society by buying a house or engaging in social activities when they have only temporary, low-paid work? What will she do about it?

Mrs. Shephard

Of course I agree that unemployment is a very unpleasant experience, but two thirds of all those who become unemployed find work within six months. I hope that the hon. Lady's constituents will find some comfort in the fact that the Employment Service has placed a record 2 million unemployed people in work this year.

I must correct the hon. Lady's apparent belief that there is a problem with temporary or part-time jobs. In 1994, only 6.3 per cent. of the work force were in temporary work, compared with more than 10 per cent. in France and Germany and a massive 33.6 per cent. in Spain. In case the hon. Lady has missed the connection, I should point out that socialist Spain—where the proportion is a massive one third—embraces both the social chapter and the national minimum wage. I believe that I am right in thinking that the Labour party wants to subject the people of this country to both of those policies.

Mr. Viggers

Is my right hon. Friend aware that I have some special knowledge of the employment situation in France, as my daughter has lived there since her marriage? Is she aware that unemployment among the under-25s in France has now reached the appalling figure of 27.3 per cent.? Is she further aware that, to avoid the rigours of the national minimum wage, it has become normal for employers to offer young people unpaid work—the so-called "stage"—for three or even six months, and the expectation of a chance of getting a paid job at the end of that period is held out to them? Is not that a scandal? Can we expect a similar situation in this country if we embrace the social chapter?

Mrs. Shephard

There is clearly a direct correlation between France's embracing a national minimum wage and its regrettably high rate of youth unemployment. Youth unemployment in this country is below that in Spain, Finland, Ireland, Italy, France, Belgium, Greece, Sweden and Portugal. I think that that speaks for itself.

Mr. McAvoy

Is the Secretary of State aware that, in 1994, the unemployment rate among graduates six months after graduating was 10 per cent.? They were thereby forced to look for any kind of job—particularly temporary jobs—to try to get along. Does she agree that that is a complete waste of their time and of the taxpayers' money invested in them? Does she have any suggestions or helpful comments for people in that situation?

Mrs. Shephard

The employment rate among graduates in this country is very much higher than that in the European Union, and unemployment among graduates here has halved in the past year. We do not want anyone to be unemployed, but unemployment is falling further and faster in this country than in any of our major competitor countries in the EU.

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