§ 1. Mr. Wardasked the Secretary of State for Employment whether there are any indications that the prospects of employment for the young are improving.
§ The Secretary of State for Employment (Mr. Norman Tebbit)Success in the reduction of inflation, the increase in productivity and greater competitiveness 2 are improving the prospects for employment generally. The young workers scheme and our plans for a comprehensive one-year training scheme for young people will particularly improve their employment prospects. Restraint in pay bargaining to avoid overpricing labour is, however, still vital.
§ Mr. WardI thank my right hon. Friend for his reply. Does he agree that a reduction in the relative level of youth pay would probably lead to an increase in youth employment?
§ Mr. TebbitAny reduction in levels of pay is likely to lead to an increase in the demand for labour. That seems to be lesson No. 1 of basic economics. Our efforts to assist employers to lower the costs of labour by way of the young workers scheme seems to be going extremely well.
About 60,000 applications have been approved under the scheme.
§ Mr. FosterDoes the Secretary of State agree with the recent Manpower Services Commission forecast that prospects for young people will worsen until the third quarter of 1983, when about 60 per cent. of young people will be out of a job? What prospects can he hold out for young people in the North of England, where matters are a good deal worse than in the South? What hope can he hold out for young people in my constituency?
§ Mr. TebbitThe hon. Gentleman could not have heard what I said in my original answer. The fall in the rate of inflation is obviously helpful. Today's announcement of a renewed fall in interest rates is also helpful. As British industry becomes more competitive, it is likely to employ more people. The latest survey of youth opportunities programme trainees—although there are some caveats I must include—suggests that some 47 per cent. are getting jobs at the end of their training as opposed to 30 per cent. according to the last survey.
§ Mr. John PageAt the risk of appearing pompously to enlarge the generation gap, may I ask my right hon. Friend whether he is certain that his officials are giving sufficient encouragement to young people to go after jobs that may exist, however humble they may be? Is he also 3 certain that young people are preparing themselves, intellectually and in appearance, to be attractive to employers?
§ Mr. TebbitOn my hon. Friend's second point, the youth opportunities programme and the youth training scheme that will follow it will do much to make youngsters more aware of what they need to do by way of training and presentation to sell their services. That is important. Perhaps my hon. Friend refers to Manpower Services Commission officials rather than my own. I am sorry if any of my officials have given any youngsters the impression that they should be too particular about the jobs for which they apply or too demanding about the level of wages for which they ask.
§ Mr. Christopher PriceWhy does the Secretary of State insist on a confrontation with the Manpower Services Commission about the youth training scheme? Is he aware that if he sticks to the £15 compulsory scheme it will clearly be counter-productive, as neither the trade unions nor the MSC will provide the co-operation that he needs to make the scheme work?
§ Mr. TebbitI did not know that I was having a confrontation with the MSC. Nor have I heard anything about a compulsory scheme—no one has proposed one.