The UK is facing a significant employment challenge, with recent data revealing alarming unemployment figures across Cambridgeshire. In Peterborough, one in every 14 people is unemployed, making it the hardest-hit area in the county. As the government rolls out its ambitious Get Britain Working plan, questions arise about how these measures will address the root causes of joblessness and long-term economic inactivity.
Unemployment on the Rise Across the UK
According to the House of Commons Library, as of December 2024, around 1.7 million people across the UK were claiming Jobseeker’s Allowance or Universal Credit (UC) with a requirement to find work. This includes:
- 298,000 young adults aged 18-24
- A significant rise in those unable to work due to long-term health issues
The UK’s employment rate stood at 75%, marking a decline compared to other major economies, where employment rates have generally risen over the past five years.
Cambridgeshire Unemployment Figures: Peterborough Worst Hit
In Cambridgeshire and Peterborough, more than 18,000 people were unemployed as of December 2024. This figure includes 3,000 young adults and represents a 10% increase from the previous year – an additional 1,900 claimants.
Peterborough experienced the sharpest rise, with an 18% increase in unemployment. This city also recorded the highest unemployment rate in Cambridgeshire, standing at 7.1% – equivalent to one in every 14 people.
Unemployment Rates Across Cambridgeshire
| Area | Unemployment Rate (%) |
|---|---|
| Peterborough | 7.1% |
| North East Cambridgeshire | 3.7% |
| North West Cambridgeshire | 3.5% |
| Huntingdon | 2.3% |
| South Cambridgeshire | 1.7% |
Understanding the Causes of Rising Unemployment
Experts point to several factors contributing to the growing unemployment rate:
1. Long-Term Sickness
The UK has seen a record 2.8 million people out of work due to long-term illness, including mental health conditions.
2. Economic Inactivity
Since 2020, economic inactivity has increased by 900,000, with 85% of this rise attributed to long-term sickness.
3. Youth Unemployment
There’s been a notable rise in the number of young adults aged 18-24 unable to work due to health conditions, nearly doubling over the past decade.
4. Cost of Living Crisis
The ongoing cost of living crisis has further complicated the situation. Many families face rising rents, mortgage repayments, energy bills, and food prices, making it harder for people to focus on job-seeking or upskilling.
Government’s Plan: The ‘Get Britain Working’ White Paper
In November 2024, Work and Pensions Secretary Liz Kendall published the Get Britain Working White Paper, which lays out the government’s plan to increase the employment rate to 80%.
This strategy includes a £240 million investment to:
- Deploy more NHS staff to reduce waiting times
- Expand access to mental health services
- Introduce preventative health measures to stop people from becoming too ill to work
- Replace the “outdated Jobcentre system” with a “new national jobs and careers service” focusing on skills development rather than just benefit monitoring
A government spokesperson said, “We are determined to get Britain working again… and will bring forward proposals to reform the health and disability benefits system this Spring.”
Shaw Trust’s Insights: The Reality Behind the Numbers
The Shaw Trust, a national charity supporting individuals through employment, education, and care services, highlighted the growing challenge of economic inactivity.
They noted that:
- Mental health conditions are a major cause of unemployment.
- Young adults are increasingly affected, with the number of 18-24-year-olds unable to work due to health issues nearly doubling in the past decade.
- In some areas, like Kent, demand for debt advice services has surged by 86% in 2024 alone.
“Health conditions are having a significant impact on people’s ability to work,” a spokesperson from the Shaw Trust explained. “Urgent action is needed to tackle this growing problem.”
Community Impact: Peterborough at the Centre of the Crisis
Peterborough stands out as the 47th worst-hit parliamentary constituency in the UK, with an unemployment rate of 7.1%.
The sharp rise in unemployment here mirrors national trends but also highlights regional challenges like:
- Skills gaps in the local workforce
- Financial difficulties due to rising living costs
- Mental health issues that are increasingly preventing people from working
Local businesses, councils, and support organizations are now working alongside the government to find long-term solutions.
As the government pushes forward with its Get Britain Working strategy, the success of these initiatives will depend heavily on improving health support, addressing skills gaps, and providing economic stability.
For areas like Peterborough, where unemployment remains significantly above the national average, community-led support combined with national policy reforms will be essential to reverse these trends and get more people back into work.
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