Britain's Youth Employment Crisis Deepens as Generation's Future Hangs in Balance
A recent report from PwC has warned that Britain is slipping down the global league table for youth employment, with a dramatic rise in worklessness threatening to derail an entire generation. The accountancy firm's annual youth employment index revealed that the UK is falling behind other advanced economies, with its economy missing out on £26bn a year due to sharp regional divisions in youth joblessness.
The number of 16- to 24-year-olds who are not in education, employment or training (Neet) has climbed to almost a million, sparking alarm among politicians and business leaders. Labour has announced plans to tackle the crisis through a "youth guarantee" – a six-month paid work placement for every eligible 18- to 21-year-old on universal credit.
However, critics argue that tax rises, a higher minimum wage, and government employment rights bills are driving up the cost of hiring young people, pricing them out of work. Clare Lombardelli, deputy Bank of England governor, warned of an increasingly bleak outlook for the UK, stating that "there is striking data about what is going on with young people" – a picture that suggests a decade-high level of long-term youth joblessness.
The crisis has been exacerbated by Labour's policies, according to Guardian analysis, which showed almost half of all jobs lost from company payrolls since Labour came to power are held by those under the age of 25. The report warned that reversing this trend could boost the economy by £13bn – closing the gap entirely would add up to £26bn.
Britain's regional divisions in youth joblessness have been particularly alarming, with London and Scotland having the most to gain from narrowing the gap with Northern Ireland, which has the lowest rate of Neet at 9%. PwC senior partner Marco Amitrano warned that "a generation's future is at risk – as is the UK's productivity and prosperity" – prompting a desperate need for a serious gear-change.
A recent report from PwC has warned that Britain is slipping down the global league table for youth employment, with a dramatic rise in worklessness threatening to derail an entire generation. The accountancy firm's annual youth employment index revealed that the UK is falling behind other advanced economies, with its economy missing out on £26bn a year due to sharp regional divisions in youth joblessness.
The number of 16- to 24-year-olds who are not in education, employment or training (Neet) has climbed to almost a million, sparking alarm among politicians and business leaders. Labour has announced plans to tackle the crisis through a "youth guarantee" – a six-month paid work placement for every eligible 18- to 21-year-old on universal credit.
However, critics argue that tax rises, a higher minimum wage, and government employment rights bills are driving up the cost of hiring young people, pricing them out of work. Clare Lombardelli, deputy Bank of England governor, warned of an increasingly bleak outlook for the UK, stating that "there is striking data about what is going on with young people" – a picture that suggests a decade-high level of long-term youth joblessness.
The crisis has been exacerbated by Labour's policies, according to Guardian analysis, which showed almost half of all jobs lost from company payrolls since Labour came to power are held by those under the age of 25. The report warned that reversing this trend could boost the economy by £13bn – closing the gap entirely would add up to £26bn.
Britain's regional divisions in youth joblessness have been particularly alarming, with London and Scotland having the most to gain from narrowing the gap with Northern Ireland, which has the lowest rate of Neet at 9%. PwC senior partner Marco Amitrano warned that "a generation's future is at risk – as is the UK's productivity and prosperity" – prompting a desperate need for a serious gear-change.
it's like, what's going on? They're losing so many young people to unemployment, and it's not just affecting them, but also the economy as a whole 
. I mean, think about all the talent that's being wasted, all those skills and ideas that could be contributing to innovation and growth... it's just heartbreaking.
. It's like they're all stuck in different gears, and nobody knows how to get them moving again.
. And what about the other factors that are driving up costs, like tax rises and higher minimum wages? We need to have a serious conversation about how we're going to support our young people without pricing them out of the job market.
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it feels like the same problems we faced back in the early 2000s with the tech bubble bursting and people struggling to find jobs. i remember my mates from uni who just graduated and couldn't get a job, they were left feeling lost and uncertain about their future. now it's happening again, but on a much bigger scale. £26bn is a crazy amount of money that's being lost due to youth unemployment, it's like the economy is missing out on so many talented young people 
like what happened to the youth guarantee or something? we need some serious help over here! and £26bn a year lost because of regional divisions? that's wild 
We need to start taking this seriously and coming up with some real solutions, pronto 
i wonder if anyone's thought about how this affects mental health too...
The numbers are crazy - almost a million 16- to 24-year-olds who aren't working or studying. That's not cool.
Maybe they could offer more apprenticeships or training programs? I heard some people saying it's because of tax rises and higher minimum wages, which might make it harder for companies to hire young people... but that doesn't seem right.
I think its like trying to fix a puzzle with too many missing pieces 
:
We need some real solutions, not just band-aids.
I mean, who wouldn't want to give 18-21 year olds six months of paid work experience? It's like the ultimate life starter kit! 
Plus, taxing higher minimum wages and increasing government employment rights isn't that big of a deal, right? It's all about creating jobs and giving young people a chance. I'm not buying into this "it's gonna drive up costs" hype. The £13bn boost to the economy from reversing the trend is totally worth it... 
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. Labour's "youth guarantee" sounds like a good idea, but critics are sayin' it'll just drive up costs and make it harder for businesses to hire young people 
. Meanwhile, the UK's missin' out on £26bn a year due to these regional divisions... that's some serious cash 
. We need a solid plan, not just a bunch of band-aids 
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. If we can't fix this, then I worry about what the future holds for young people here. We need to get a serious gear-change going ASAP 
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theyre just gonna drive up costs for companies... we need more jobs created, but how are we gonna make that happen?