Youth jobs crisis is set to cost economy almost £7bn next year

Young people will increasingly bear the brunt of the unemployment crisis, at a growing cost to the UK economy, according to a new report.

The report by the Prince’s Trust and the Learning and Work Institute warns youth unemployment will remain high and will cost the economy, in terms of lost national output, around £6.9bn in 2022.

It argues the outlook for young people’s employment is worse compared to the outlook for older workers.

In addition to being over-represented in the sectors hit hardest by the pandemic to date, young people tend to be over-represented in the sectors that are forecast to see lower employment in the long term and under-represented in occupations which are likely to see the strongest job growth.

The report finds disparities in the impact of the crisis on different groups of young people, raising concerns that the pandemic has, and will continue to, exacerbate pre-existing inequalities.

Analysis shows that the decline in working hours for young people with no qualifications (34%) has been five times higher than the decline for those with a degree level qualification (7%).

Demand for employees with lower-level qualifications is projected to fall in the short, medium and long-term, raising concerns that the employment prospects of young people who lack higher level qualifications will be further negatively affected.

The report also finds the decline in hours worked for Black young people (49%) has been three times higher than for white young people (16%).

New data surveying UK employers finds two in five (41%) feel the pandemic will have a negative impact on young people’s prospects in their sector in five years’ time. A survey of young people finds one in four (26%) expect their employment prospects will still be impacted in five years’ time.

Last week, a cross-party group of peers launched a new inquiry into youth unemployment.

‘We also know from 45 years’ experience of working with young people that youth joblessness can impact self-esteem and mental health for years to come, if we fail to act,’ said Princes Trust chief executive, Jonathan Townsend.

‘Government, employers and charities must work together to ensure that the young people who need the most support are not forgotten. They need the opportunities to upskill, retrain and access job opportunities, or we risk harming not only our young people’s futures but the recovery of our economy.’

Photo Credit – Pixabay