The new funding pot Chancellor Rachel Reeves announced this morning is a very ambitious-sounding £820 million. This proposal to address the critical crisis of youth unemployment across England. Almost one in seven young people aged 16-24 are considered Neets – not in education, employment or training. The federal government has recently taken significant action to intentionally make tangible job pathways for this at-risk population. The funding announcement from DOT comes at an opportune time. Youth disengagement rates have shot up to almost an 11-year high, a trend that can deeply affect our future workforce.
Currently, an estimated 946,000 young people of this age group are Neets, or about one in eight. This startling figure isn’t just a reflection of what few young Americans today are able to find stable employment or have any prospect of going to college. Of those classified as Neets, 366,000 are unemployed, showing a growing scourge of economic inactivity, especially among young people.
The Youth Futures Foundation’s research identified a rise in long-term sickness as a contributing factor to this economic inactivity over the past three years. In an effort to counteract this crisis, the government has started the Youth Guarantee scheme. This new program offers subsidized work experiences to 18-21 year-olds who have not been employed or enrolled in school for over one-and-a-half years. This new national program is aimed at providing young people with multiple options, such as apprenticeships, vocational training, and assistance in finding jobs.
Reeves emphasized the importance of the initiative, stating that it aims to “protect people who cannot work and empower those who can.” She further articulated her commitment to ensuring that young people who have faced setbacks due to the political climate receive the opportunities they deserve.
“We must give the young people who were let down by the Conservatives the support and opportunity they deserve.” – Rachel Reeves
The government will bear the costs of the apprenticeship training for under-25 year olds at small and medium-sized enterprises. This, in turn, makes these programs entirely free as a result of the funding program! This change is designed to reduce cost burdens on businesses. It should motivate them to put their own money into training the youngsters.
They previously announced plans to raise the legal minimum wage for 18-20-year-olds. Beginning in April, it will increase from £10 to £10.85 an hour. Even with all of these positive developments, the job market is more challenging than ever for young people. A drop in job vacancies paired with the worst month for payroll losses have made conditions worse than ever for people looking for work.
Nick Harrison, CEO of the Sutton Trust, welcomed the changes to apprenticeship schemes but called for more funding to support these initiatives effectively. He stated that “apprenticeships have the potential to be a powerful tool for social mobility, offering an alternative route to highly skilled industries.”
Many experts are wary about how we should be hiring youth. Rebecca Florisson highlighted that “evidence is clear that forcing individuals into ‘any job’ can do more harm than good to their future employment prospects.” The sentiment behind this quote highlights the importance of intentionality when implementing programs that truly prepare young people for career success.
Mary E. David Hughes echoed these sentiments and called for a tripling of adult education funding. This funding is key to providing adequate support for the nearly one million young people who are NEETs. He emphasized that without additional budget allocations, millions of adults may be left behind amid the ongoing technological and green revolutions.