Britain faces its fastest rise in youth unemployment since the 2008 financial crisis, leaving nearly one million young people outside work, education, or training. Alan Milburn's upcoming report argues that the state currently expends £25 on benefits for every £1 spent on employment support. This initiative hinges on private sector cooperation, but almost half of young jobseekers surveyed by Youth Employment UK view businesses as unsupportive. A twenty-year decline in entry-level positions further hampers these vulnerable workers from entering the workforce.
Key points
Government spending is heavily skewed toward paying benefits rather than funding proactiv…: Government spending is heavily skewed toward paying benefits rather than funding proactive youth job support programs.
Corporate Britain faces intense scrutiny for failing to offer adequate entry-level vacanc…: Corporate Britain faces intense scrutiny for failing to offer adequate entry-level vacancies to inexperienced young applicants.
Deepening regional inequalities leave youth in disadvantaged areas with significantly few…: Deepening regional inequalities leave youth in disadvantaged areas with significantly fewer employment opportunities than wealthier districts.
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A generation is being sold short. Almost a million young people are not in education, employment or training (Neet). Austerity and the Covid pandemic cast a lengthy shadow, AI is upending the jobs market, and the cost of living is soaring – all under the microscope of the social media age.
This week Alan Milburn’s landmark report on young people and work will bring Britain to a fork in the road: either continue on this path of state and market failure or sharply change direction.
It will be a big test for Andy Burnham’s government. Milburn will call for controversial benefit cuts for under-25s in exchange for a legal guarantee of a job or training. Alongside changes to education and health, his plan will take a decade to implement.
Behind his argument is a principle Labour has struggled with – that restricting benefits to encourage work is a good idea.
The system clearly is not working. Milburn makes the case eloquently – pointing out that for every £1 spent on job support £25 goes on benefits. But there are also…
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