New research into UK unemployment identifies a ‘lost workforce’ of over 6 million, as Tesco rolls out free Careers Clinics to support more people into work

Tesco has announced it is launching Career Clinics across the UK as it reveals new research conducted by the Social Market Foundation (SMF) – an independent cross-party think tank. The research shines a light on the obstacles facing people who want to get into work, and the solutions that could help them get on in life, help the economy, and boost social mobility.

The research reveals that this ‘lost workforce’, which is struggling to get a foot in the door, is often held back by solvable obstacles, such as lack of careers support and confidence in going through the recruitment process. Over half (56%) of people surveyed, who want to get into employment, don’t feel equipped to compete in the job market, while 36% say they underperform in interviews, and 30% find it difficult to write a CV that appeals to employers. 

The data shows that people in this ‘lost workforce’ are most likely to be aged 45 to 64 or 18 to 24; from a disadvantaged background; or without higher education. The lost workforce is significantly more likely to feel they are not ‘good enough’ with over a quarter (28%) saying this has put them off applying for a job.

The potential economic benefit to supporting this group of people is enormous. SMF’s research estimates that bringing this lost workforce into employment could bring a benefit of up to £454bn to the economy. 

In response, Tesco – the UK’s largest private employer with over 300,000 colleagues across the UK – is looking to support over 1,000 people in November with free Career Clinics across the UK, specifically targeted in areas that face higher deprivation and economic challenges. These clinics will be free to attend and will aim to give people the valuable life skills and confidence to go forward into work, whether they’re looking for a job at Tesco, or anywhere else. 

Anyone who attends one of the Career Clinics will also be guaranteed an interview as part of Tesco’s festive recruitment drive – opening up the opportunity to work for the UK’s biggest retailer at its most exciting time of year. 

In recent years, Tesco has also taken steps to remove barriers to employment and increase diversity and inclusion in its workforce, including removing the requirement to submit CVs and complete psychometric testing for all frontline roles, helping to drive a significant increase in applicants.

In Tesco’s Distribution teams, new recruitment hubs have been set up to give applicants more personal support and simplify the recruitment processes, across multiple languages. This has not only halved the recruitment time but has resulted in new colleagues joining the business who represent more diverse backgrounds and truly reflect the communities it serves. 

With hundreds of new colleagues joining the business each year, Tesco is committed to providing even more transparency and support for applicants in the future, including publishing interview questions online to support those who struggle in interviews. 

Tesco is also calling on the Government to make it easier for businesses to provide training and reskilling opportunities to its employees, including implementing the Growth and Skills Levy as a priority to enable people at all levels of attainment to access more modular and targeted training. This would give more people access to the training opportunities they need to get into work and get the skills they need to work in the modern labour market. 
 
Ken Murphy, CEO of Tesco, said: “The findings of this report are hugely important. Millions of people are not working because they don’t feel ‘good enough’ to even apply for a role – due to their background or education, or any number of factors that should have no bearing on their ability. 

“Everyone is welcome at Tesco and I have always been a big believer in the power of retail as an employer. The geographic reach and variety of roles means that a job in retail can help anyone to get on, wherever they live and whatever their background.  I hope the Career Clinics we are launching will help give people a confidence and skills boost where it’s sorely needed, and that the changes we have made to our recruitment processes will give more people a chance to find flexible and rewarding opportunities at Tesco.

This report highlights steps all employers can take to make it easier for more people to access the workplace. We are determined to do everything we can to play our part.”
  
Jake Shepherd, co-author of the report and Senior Researcher at the Social Market Foundation said: “Despite including more than six million people, the lost workforce is often overlooked by standard definitions and metrics. Our analysis includes not just the unemployed but also some of those considered economically inactive, such as individuals with caregiving responsibilities or people discouraged by a lack of opportunities. By ignoring this group, the government misses a significant chance to boost employment and achieve its 80% employment target.”

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