The youth employment challenge

This report is a follow up to last year’s Youth Inquiry. It uses the latest evidence from the UK Commission’s comprehensive survey of employers to highlight how the labour market and recruitment practices have changed over the last decade. We have looked at these changes focussing on the effects they have had on youth employment; including putting young people in a Catch-22 situation and making it harder for them to transition from education into work.
The youth employment challenge
(PDF, 357 Kb) Published July 2012
By comparison to other European countries, youth unemployment in UK is just below average at around 22%, but it is rising and has been rising since 2005. This suggests structural causes beyond the current economic situation:
- The labour market has been changing in ways that impact negatively on young people
- Recruitment practices make it increasingly difficult for young people to get a foot on the ladder
Only 24% of employers have taken on a young person direct from education in last 2 to 3 years, but out of these, and contrary to popular belief, the majority find young people well prepared for work. Those who didn’t cite a lack of experience as the key factor. This puts young people in a Catch 22 situation: no job, no experience; no experience, no job.
The business case for recruiting young people needs to be made clear. There are a number of benefits young people can bring to an organisation: they help businesses enter new markets, reduce staff costs, improve retention, provide tailored skills and a talent pipeline, and support business growth as they tend to be flexible, innovative and full of new ideas.
To read more about the benefits of recruiting young people, please see our leaflet: “Grow your own: How young people can work for you (PDF, 291 Kb) ”.