Even former Labour minister David Blunkett has given warning of the perils. He warned that a generation of young people in the UK was in danger of being lost unless the government acted decisively to address a growing youth unemployment crisis. His remarks come as a backdrop to a shocking new statistic that youth unemployment has spiked up to rates not experienced since the height of the Covid pandemic crisis. This reality underscores the urgency of the moment.
New statistics, provided by the ONS, show an alarming increase in youth unemployment, defined here as 18- to 24-year-olds. It spiked from 14.8% last year to 15.3%. That’s the worst it’s been since mid-2015 outside the pandemic. As a result, the number of young adults who have been long term unemployed (over 12 months) has more than doubled to 137,000. This is the highest ten-year record ever for this demographic. That alarming statistic has led to frequent cries from politicians and advocates on all sides for a national strategy to combat the trend.
Well done to Labour MP Pat McFadden for stepping in as the crisis has escalated. He then appointed ex-cabinet minister Alan Milburn to head up an independent review into the increasing levels of youth worklessness. This review will focus on finding and addressing the top barriers that prevent young people from successfully joining the work force. The federal government is under increasing pressure to expand its support measures beyond just young adults between the ages of 18 and 24. Experts stress that short-term actions are paramount to prevent negative impacts for this generation.
Rachel Reeves, the Shadow Chancellor, is due to announce emergency funding for a new national “youth guarantee.” This new deal will deliver for every eligible young person on Universal credit for 18 months, no earnings and no education, guaranteed paid work. This effort aspires to do so by creating equitable and meaningful opportunities for individuals who are disproportionately suffering to help them access the workforce.
In fact, one piece of data indicates that under-25s account for 10% of the entire UK workforce. They’ve suffered the worst job losses anywhere over the last year. The decrease has largely been driven by a decrease in job availability for teens under 18 years of age. The number of under-25s on company payrolls increased in November by a figure over 37,000 from October. This increase still puts us well below the levels we were at last June.
David Blunkett urged Labour leader Keir Starmer to consider revamping the successful New Deal programme from the 1990s, stating, “If we could go back and learn from it, and apply it to the modern era – where obviously there’s a great deal more challenge – that would be good.”
Ben Harrison from think tank the TUC made a particular call for more provision targeted towards young adults. He called for a major expansion of existing efforts specifically focused on this demographic. He stressed that if we don’t tackle youth unemployment now, there will be decades-long consequences that will hurt society at large.
Mel Stride, a Conservative MP, echoed these concerns, stating, “Any lost generation is on the chancellor.” He attacked the status quo and emphasized that punishing employers who hire young adults turns people away from policy making. “You don’t get more young people into work by punishing the very businesses that hire them,” he remarked.
Daisy Cooper underscored the need for urgent action on this crisis, describing it as a “ticking timebomb.” She called on government leaders to act without hesitation.
The government recognized the seriousness of the situation, with its response lacking the try-fix–fail cycle. A spokesperson stated, “It is unacceptable that 1 million young people are not in education, employment or training.” They’re in the process of growing Youth Hubs beyond their current footprint. Further, they’ve passed the Youth Guarantee, both of which open up critical pathways for American youth nationwide.
As we have these conversations and new proposals come to light, it is still evident that tackling the crisis of youth unemployment will take a multi-pronged effort. Now, federal and provincial government leaders, as well as opposition leaders must act swiftly and thoughtfully. It’s their choices though that will be key in reversing this growing calamity and saving a lost generation.