Nearly Half of Job Losses Under Labour Government Affect UK Youth
Analysis finds 46 per cent of the 170 000 roles cut since June include workers under 25, raising alarm of a ‘lost generation’
Almost half of the job losses recorded in the United Kingdom since the Labour government took office are among young workers, according to new analysis of payroll data.
Of around 170 000 roles shed from UK company payrolls since June last year, 46 per cent were held by employees under the age of 25 — more than 150 jobs lost each day — despite that cohort representing roughly one-tenth of the total workforce.
The youth unemployment rate has risen to 15.3 per cent, the highest figure outside the pandemic era since 2015, while long-term youth joblessness (among 18- to 24-year-olds unemployed for over twelve months) has surged to 137 000, a ten-year high.
The largest fall in payroll employment was seen among those aged under 18.
Former education secretary David Blunkett warned that the government risks presiding over a “lost generation” unless corrective action is taken.
He emphasised the need for a modern version of the 1990s New Deal for young people, designed to link work-experience, training and job-creation.
Economists and industry observers point to employer national insurance and wage-growth taxes — amounting to roughly £25 billion — as a key contributing factor, particularly affecting sectors such as hospitality and retail that traditionally provide initial employment for young adults.
Firms hiring young workers appear to have pulled back amid rising costs.
With the number of young people neither in employment, education nor training (NEETs) expected to exceed one million for the first time in over a decade, the government has announced that an independent review led by Alan Milburn will examine the causes of rising youth joblessness.
The chancellor is expected to announce a “youth guarantee” in the forthcoming budget: paid work or training opportunities for every eligible 18- to 24-year-old out of work for eighteen months.
Although the government claims that expanded Youth Hubs and the Youth Guarantee will improve outcomes, the pace and scale of the measures now need to match the magnitude of the challenge facing younger workers across the UK.
Of around 170 000 roles shed from UK company payrolls since June last year, 46 per cent were held by employees under the age of 25 — more than 150 jobs lost each day — despite that cohort representing roughly one-tenth of the total workforce.
The youth unemployment rate has risen to 15.3 per cent, the highest figure outside the pandemic era since 2015, while long-term youth joblessness (among 18- to 24-year-olds unemployed for over twelve months) has surged to 137 000, a ten-year high.
The largest fall in payroll employment was seen among those aged under 18.
Former education secretary David Blunkett warned that the government risks presiding over a “lost generation” unless corrective action is taken.
He emphasised the need for a modern version of the 1990s New Deal for young people, designed to link work-experience, training and job-creation.
Economists and industry observers point to employer national insurance and wage-growth taxes — amounting to roughly £25 billion — as a key contributing factor, particularly affecting sectors such as hospitality and retail that traditionally provide initial employment for young adults.
Firms hiring young workers appear to have pulled back amid rising costs.
With the number of young people neither in employment, education nor training (NEETs) expected to exceed one million for the first time in over a decade, the government has announced that an independent review led by Alan Milburn will examine the causes of rising youth joblessness.
The chancellor is expected to announce a “youth guarantee” in the forthcoming budget: paid work or training opportunities for every eligible 18- to 24-year-old out of work for eighteen months.
Although the government claims that expanded Youth Hubs and the Youth Guarantee will improve outcomes, the pace and scale of the measures now need to match the magnitude of the challenge facing younger workers across the UK.
