Andrew Griffiths has said a report by businessman Sir Charlie Mayfield into ill-health and disability leaving thousands of people out of work is "a good piece of work".
The shadow business and trade secretary says it's a "big report" but that "Charlie is someone who's been in and around the government and done many of these reports".
Mayfield is the former chairman of the John Lewis Partnership.
Griffiths adds: "There's been an issue for a while, and it's amplified at the moment about worklessness.
"I am worried about the generation of jobless, young people finding it really hard to get into the workplace."
He then goes on to attack the government's Employment Rights Bill, which he says "goes in the wrong direction".
Griffiths adds: "I think we need to give employers more opportunity and reasons to hire young people, and that, without getting into the details of it, will put up all sorts of barriers and create incentives for them not to take a chance when they're giving young people a job.
"And then there's a piece of this about welfare reform as well.
"I think most people who looked at this would acknowledge there is a spectrum from people with very profound conditions that we ought to support, for those that are more at the anxious end of the spectrum, where actually being in the workforce, being around other people, getting the confidence that you can get through work is probably the best thing for them, rather than being left to moulder on their sofa."
But he adds that if politicians "don't take action" to address the number of young people out of work and education, "then this will continue to grow".
"So I think we do need to take action," he says.
"Again there's not just one thing, but there's an element of making it a little bit harder to get access to welfare for some cases, more support for others, and definitely looking at the role of employers and making sure you don't have the unintended consequences of a really big red tape bill that says to them, we won't hire people."