The Government has a jobs problem and business has decided to help solve it.
UK unemployment is rising and youth joblessness has hit 16%. With nearly 1 million young people out of education, employment or training, and long-term sickness benefits having jumped by almost 700,000 since the pandemic, waiting for a policy fix clearly isn’t an option for some of Britain’s biggest employers. So they’ve decided to act. A new Employer Taskforce has brought together around 30 companies — including BT, Shell, Marks & Spencer and Pret — to tackle the UK’s worsening labour market head-on.
What the Taskforce Is, and Who’s Behind It
The initiative is spearheaded by the Jobs Foundation, a non-profit focused on job creation, and is chaired by Octavius Black CBE. The aim: pool expertise from Britain’s biggest businesses to find practical solutions for getting people — particularly those from disadvantaged backgrounds — into work.
M&S’s chief people officer Hayley Tayum said businesses have the knowledge to support people into employment “at scale”. The frustration driving the effort is real. Recruitment and retention schemes, bosses say, are “frustratingly fragmented” — good ideas exist but aren’t being shared or scaled.
Jobs Foundation CEO Georgiana Bristol was direct about the stakes: “A good job is the number one thing that we can give people to help them live a prosperous and happy life. The expertise to give more people that opportunity already exists within British business, but right now it isn’t being shared, and it isn’t being scaled.”
Labour’s Welfare Reform Push
This private sector push comes as the government ramps up its own efforts. Work and Pensions Secretary Pat McFadden has been tasked with transforming Britain from a “welfare state to a working state” — an ambitious framing that reflects just how central the jobs market is to Labour’s economic agenda.
In a Cabinet reshuffle last year, skills ministers were moved into the DWP from the Department of Education, and Sir Keir Starmer singled out welfare reform as one of Labour’s key levers for driving growth alongside trade deals and deregulation.
Two major reviews are in the pipeline. The Alan Milburn review into young people not in education, employment or training is expected imminently. The Sir Stephen Timms review into disability benefits — anticipated later this year — has already generated controversy after Rachel Reeves’ £5bn cuts to payments triggered a significant Labour backbencher rebellion last summer.
Fixing the Hidden Costs of Inactivity
A separate review by former John Lewis chairman Sir Charlie Mayfield examined workplace sickness and disability, proposing that firms take greater accountability for employee health. New ‘healthy working standards’ could see companies receive national certificates for meeting best practice — a carrot-and-stick approach that has attracted industry interest.
Mayfield welcomed the Employer Taskforce directly: “It’s evident that the solution to our inactivity crisis lies in unlocking the resources, experience, and expertise of Britain’s business community.”
Key Takeaways
Britain’s labour market challenges are deep-rooted and politically charged. But the Employer Taskforce represents something genuinely useful: business stepping in not just to lobby, but to act. Whether it can move the needle on youth unemployment and economic inactivity at meaningful scale remains to be seen.
FAQ
What is the Employer Taskforce on UK unemployment?
It’s a non-governmental initiative led by the Jobs Foundation, chaired by Octavius Black CBE, bringing together around 30 major UK businesses including BT, Shell, M&S and Pret. Its aim is to find practical solutions for getting people — especially from disadvantaged backgrounds — into work.
What is the current UK youth unemployment rate?
Youth unemployment has risen to 16%, and there are nearly 1 million young people not in education, employment or training (NEETs) according to the latest data.
How has long-term sickness affected the UK labour market?
The number of people on long-term sickness benefits has risen by nearly 700,000 since the pandemic, contributing significantly to rising levels of economic inactivity.
What is Labour’s plan for welfare reform?
Work and Pensions Secretary Pat McFadden is leading efforts to shift from a “welfare state to a working state.” Key reviews underway include the Alan Milburn review on NEETs and the Sir Stephen Timms review on disability benefits.
What did the Mayfield review recommend?
Sir Charlie Mayfield’s review proposed that businesses take greater accountability for employee health, with potential ‘healthy working standards’ certificates for firms that meet best practice.
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Effective Date: 15th July 2025
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