Youth Unemployment Crisis: Labour's Efforts Face Headwinds

Rose Green's journey into the professional world was far from conventional. Having spent her adolescence in multiple care homes in north London, a stable career path wasn't immediately apparent. Green acknowledges the difficulties faced by those growing up within the care system, explaining that the trauma experienced often overshadows academic pursuits. "You're essentially self-parenting while still being a child, just trying to figure things out. Even now, I'm still learning," she reflects.

Despite these significant obstacles, the 26-year-old from Camden has secured a role as an employment and training officer at the local council. Leveraging her own experience as a care leaver, she now dedicates her time to assisting others in overcoming similar challenges.

Green's work holds significance not only for the future generation but also for the broader British economy, particularly as the Labour government, led by Keir Starmer, pledges to address the mounting crisis of youth unemployment.

Recent data from the Office for National Statistics paint a concerning picture. The number of young individuals not engaged in education, employment, or training (NEET) has surged by over 25% in the last five years, approaching nearly one million. Specifically, for the three months leading up to June, the number of 16- to 24-year-olds classified as NEET reached 948,000. This marks a considerable increase from 750,000 at the close of 2019, and a rise of approximately 40,000 since Labour assumed power a year ago. Care leavers are disproportionately represented within this demographic.

This means that one in eight young people across the nation is currently disengaged from employment, education, or training during a period where the job market is exhibiting signs of cooling due to increased taxes and a sluggish economy.

Liz Kendall, the work and pensions secretary, has acknowledged the substantial challenge that Labour faces in reducing these numbers. "We're making a start, and I am fully committed to delivering on this," she stated.

During a visit to the Euston Skills Centre, following a meeting with Green, other Camden council employment advisors, and young people with care experience, Kendall announced the government's plan to extend a £45 million scheme of "trailblazer" initiatives across eight English mayoral authorities. These projects are designed to provide tailored support to young adults seeking employment.

"We cannot allow an entire generation of young people to be deprived of the opportunities they need," Kendall asserted. "It's detrimental to them and detrimental to the country... it doesn't have to be this way."

The scheme, which launched this spring with initial funding for one year, will now be extended until spring 2027, providing additional resources for its comprehensive job support program. The schemes operating in London and Liverpool have a specific focus on supporting care leavers.

Other areas included in the "trailblazer" initiative are the West Midlands, the Tees Valley, the East Midlands, the West of England combined authority, and the Cambridgeshire and Peterborough combined authority.

While ministers have committed to a "youth guarantee," promising access to education or training to all young individuals to facilitate their entry into the workforce, Labour has faced growing criticism that its other policy decisions have had a negative impact on the jobs market.

Official statistics indicate that unemployment has risen since Rachel Reeves's £25 billion increase in employer national insurance contributions (NICs) and the rise in the "national living wage." Job vacancies in sectors like hospitality, retail, and summer employment – traditionally filled by younger adults – have also declined significantly.

Kendall has encountered considerable criticism from across the political spectrum. Those on the right criticize the rising number of universal credit claimants, now at 8 million. From within her own party, charities, and advocacy groups, warnings have been issued that planned cuts to benefits will severely impact a large number of disabled individuals, despite the partial reversal of other proposed changes to disability support.

As a challenging autumn budget approaches, Reeves is under pressure to address a multibillion-pound shortfall in government finances, partially resulting from Labour's backtracking on planned disability benefit reductions.

Despite offering a new £45 million for eight youth trailblazer schemes, questions arise whether the government's other policy adjustments are undermining these efforts and whether the work and pensions secretary will be compelled to implement further savings measures.

Kendall remains resolute. "I have no illusions about the magnitude of the task. You can't simply reverse a decade of stagnant growth and inadequate support overnight."

"But we are actively implementing solutions. It is positively impacting real people. And I will make that known to everyone."