Youth Unemployment Crisis Will Have Decades-Long Impact, Warns Experts
The alarming youth unemployment crisis gripping the nation requires immediate intervention to prevent decades of economic scarring, according to a stark warning from business leaders and government investigators. With almost one in eight young people aged 16 to 24 currently not in education, employment, or training, the situation represents what former Labour minister Alan Milburn has termed a national outrage.
The Long-Term Scarring Effect of Being NEET
Launching his government investigation into record unemployment and inactivity among young people, Alan Milburn emphasized the profound consequences of being NEET. He stated, "If you're not working in your twenties you're probably not going to be working in your thirties, your forties, your fifties, and that exacts huge consequences." This long-term scarring effect threatens to create a lost generation with diminished economic prospects throughout their working lives.
The findings of the Milburn review, expected later this year, will represent a crucial moment in combating rising youth unemployment. James Reed, chairman and CEO of Reed, which processes 30 million job applications annually, has been developing practical proposals to support young people in establishing and maintaining their place in the labour market.
A Three-Lane Superhighway to Employment
Reed's comprehensive approach focuses on preventing young people from becoming NEET through strengthened careers education and earlier intervention. The company proposes a "three-lane superhighway" into work, ensuring nobody gets left behind. The three distinct routes are:
- Employment Pathway: Strengthening the transition from school to work by expanding the youth trailblazer scheme and Restart Scheme through a flagship employment support offer for young people. Employers must be educated and empowered to better support young employees, particularly regarding mental health and neurodivergence issues.
- Apprenticeship Route: Enhancing apprenticeship opportunities and eliminating lingering snobbery around vocational training. This involves removing barriers to gold standard apprenticeships, especially for small and medium-sized enterprises.
- University Overhaul: Reforming higher education to ensure all degrees adequately prepare young people for the workforce while improving the quality of careers and employment support within universities.
Minimum Wage Increases Pricing Young People Out of Jobs
Another significant concern raised by James Reed involves the unintended consequences of minimum wage increases. When combined with rising hiring costs such as higher employers' National Insurance contributions, these wage hikes risk pricing young people out of the workplace entirely. The total cost of hiring a 21-year-old working 40 hours weekly has now reached at least £29,654, representing a staggering 70 percent increase over the past five years.
While fair compensation remains essential, serious reflection is needed regarding the affordability of entry-level positions for employers. This issue has gained broader recognition, with figures including Angela Rayner echoing similar concerns about the economic barriers facing young job seekers.
Broader Implications and Related Issues
The article also touches on several related matters of public interest. James Reed expressed support for former Prime Minister Gordon Brown's call for an inquiry into whether Andrew Mountbatten-Windsor utilized taxpayer-funded jets and RAF bases for meetings with Jeffrey Epstein. He advocated for maintaining the highest standards for individuals in public life or government-appointed roles.
Additionally, Reed highlighted the challenges facing arts charities experiencing a 'triple whammy' of rising costs, increased demand, and shrinking income from public donations and grants. His charity Big Give's annual Arts for Impact campaign aims to raise crucial funds for hundreds of arts organizations spanning music, theatre, dance, museums, galleries, and literature.
Finally, Reed celebrated the cultural richness of Kerry, Ireland, noting its extraordinary arts, culture, and music scene that has captivated visitors for decades. As the youth unemployment crisis continues to unfold, comprehensive solutions like the three-lane superhighway proposal offer hope for redirecting young people toward sustainable economic participation before it's too late.
