James Reed: Youth unemployment crisis will have decades-long impact
Those not working in their twenties are unlikely to start in their thirties. The youth unemployment crisis needs action now before it’s too late, writes James Reed
Unemployment crisis needs action now
The fact that almost one in eight young people aged 16 to 24 is not in education, employment or training (NEET) represents an unacceptable level of wasted time, talent, potential and fulfilment for young people, their communities and the economy.
Launching his investigation for the government into the causes of record unemployment and inactivity in this generation, Alan Milburn rightly called it a national outrage: both a social injustice and an economic catastrophe.
Mr Milburn has spoken of the “long-term scarring effect” of being NEET: “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.”
The findings of the Milburn review, expected later this year, will be an important moment in the fightback against rising youth unemployment.
At Reed, where we deal with 30m job applications a year, we have been working on practical proposals to support that ambition and ensure that young people are able to progress and sustain their place in the labour market.
Naturally, we need to prevent young people from becoming NEET in the first place – which means strengthening careers, education and earlier intervention.
In terms of getting young people into work, we propose a “three-lane superhighway”, with nobody left behind.
The three routes are employment, apprenticeship or university.
First and foremost, we must strengthen the pathway from school into employment. That means building on the youth trailblazer scheme and Restart Scheme by scaling up a flagship employment support offer for young people. Employers need to be educated and empowered to better support young employees, particularly when it comes to issues around mental health and neurodivergence.
Second, the apprenticeship route needs to be strengthened, and the snobbery that still exists around it done away with. That means removing barriers to gold standard apprenticeships, particularly for SMEs.
Finally, the university route – which we must accept is not for everyone – needs to be overhauled, by ensuring all degrees prepare young people for the world of work and raising the quality of careers and employment support in higher education.
You can read more about our proposals at A three-lane superhighway into work | Reed in Partnership.
Minimum wage rises are pricing young out of jobs market
I spoke to LBC earlier this year about the risk that ever-increasing minimum wage levels, coupled with increases in the cost of hiring such as higher employers’ National Insurance, are pricing young people out of the workplace. Since then, it’s been interesting to see others – including Angela Rayner – raising the same issue. When wages and taxes are taken into account, the cost of hiring a 21-year-old working 40 hours a week is now at least £29,654, an increase of over 70 per cent in the last five years. While we all want to see people paid properly, it’s time for some serious reflection on the cost to employers of entry-level jobs.
Brits deserve public inquiry into Andrew’s behaviour
I fully support calls by former Prime Minister Gordon Brown for an inquiry into whether Andrew Mountbatten-Windsor used taxpayer-funded jets and RAF bases to meet Jeffrey Epstein. There is also the case for a wider public inquiry looking into his and Lord Mandelson’s roles once the police process is concluded.
While both apparently deny wrongdoing, businesspeople found to have abused privileges or confidential information would expect to pay a heavy price. We must demand the highest standards of anyone in public life or any government-appointed role.
Supporting the arts
Arts charities are being hit by a ‘triple whammy’ of rising costs, increased demand and shrinking income from public donations and grants. This makes my charity Big Give’s annual Arts for Impact campaign, raising money for hundreds of arts organisations, more important than ever. Participating charities span music, theatre, dance, museums, galleries and literature.
Last year we raised £2.7m in one week and this year we’re hoping to better that. From 17 to 24 March, you can choose a charity to support via www.biggive.org and Big Give will double your donation.
Giving flowers to Kerry
On the evening Jessie Buckley, from Killarney in County Kerry, was picking up her BAFTA best actress award this week, the Foo Fighters were playing the 80-seat St James’ Church in Dingle. Kerry is an extraordinary place for arts, culture and music. I have been going there since the 1980s, when I first fell in love with the place they call ‘The Kingdom’.
James Reed is the chairman and CEO of Reed