HC Deb 18 October 1994 vol 248 c137
15. Mr. McFall

To ask the Secretary of State for Employment what discussions he has had with his EC counterparts on the issue of unemployment in the EU, with particular reference to youth unemployment.

Miss Widdecombe

There have been many discussions, both bilaterally and in the Labour and Social Affairs Council, and Community counterparts are beginning to recognise that high labour costs and inflexible labour markets are among the key causes of high unemployment.

Mr. McFall

Does the Minister accept that it is disgraceful that 16 million people are unemployed in Europe and that it is even more shameful that 20 per cent. of them are young people aged between 18 and 25? Will the Government give a commitment today to consider the future of young people in this country as important? Will they therefore make it their No. 1 priority in Europe and at least say that they will try to get young people back to work?

Miss Widdecombe

It is because the Government are concerned about youth unemployment that we rejoice in the fact that our youth unemployment rate is well below the European average. The unemployment rate among under 25-year-olds in this country is 13.2 per cent. while the European average is 19.4 per cent. Our youth unemployment rate, together with that of Spain, is falling faster than in any other country. There are 84,600 fewer 18 to 20-year-olds unemployed in this country than there were last year. That is the way to lead Europe—by example.

Mr. Rowe

Has my hon. Friend noticed that the folk she meets along the streets are whistling Samsung? This country leads Europe in attracting inward investment from all over the world. Does she agree that that success is a major contributor to the fall in unemployment, particularly youth unemployment?

Miss Widdecombe

It is clear that the reason why we attract 40 per cent. of all investment in Europe carried out by the United States and Japan is our flexible labour markets. Those markets have not been achieved by some neo-classical endogenous theory, but by solid, practical, flexible policies, which have resulted in solid, practical jobs for our citizens. We shall continue to pursue those policies.