Unemployment Rate Is A Work Of Fiction - Cable

10.47.00am BST (GMT +0100) Wed 13th Jun 2007

Following the publication today of the latest set of unemployment figures, the Liberal Democrats have expressed concern at the number of economically inactive people, which is at its highest level since records began.

Commenting, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"It is becoming increasingly clear that the headline unemployment rate is a work of fiction. There are vast numbers of people who are capable of working but who have simply dropped out of the labour market.

"It's striking that the proportion of men currently in the labour market is lower than when Mrs Thatcher was in power.

"Many older workers are retired early, and then find it difficult to get back into work. There is still a large amount of discrimination against older workers. Programs like the new deal are not geared to help them.

"There is also a great number of people on some form of disability benefit, despite government rhetoric.

"There has been a worrying increase in claimants with mental illness. Many people who have depression could be helped to gain employment if they had access to psychotherapy. But despite a few pilot studies there is very little energy in the Government's approach to this problem.

"Overall, low unemployment and rising employment have been amongst Gordon Brown's biggest claims of economic success. However, it is increasingly clear that there is a hidden army of people who have dropped out of the labour force. Many are in considerable hardship and have been written off prematurely."