The current hot topic
Youth job crisis
A new report has warned that one in six young people will not be in education, employment or training within five years if 'urgent action' is not taken. Dubbed the Milburn Report after its author, Alan Milburn, the report warned that the UK's education, health and welfare systems are 'no longer fit for purpose' in regard to preparing young people for adulthood.
The UK’s leading business groups have called the review a ‘wake-up call’ that ‘marks one of the most significant recent assessments of youth participation in the UK labour market’. Here, we take a look at their concerns and recommendations.
Clear pathways
The report stresses that current recruitment approaches must change in order to provide clear pathways into work. Barriers include complex application processes and a distinct lack of feedback for candidates.
The Milburn report also found that traditional stepping stones such as part-time work, apprenticeships and work experience have weakened. In addition, the report highlights the importance of flexible working patterns to young people seeking work. According to the author, these help employers retain talent.
Local collaboration between education providers, employers and others is ‘critical’, the report stressed: Local Skills Improvement Plans (LSIPs) aid in aligning training with real job opportunities.
Wake-up call
Business groups, including the British Chambers of Commerce (BCC) and the Federation of Small Businesses (FSB), have responded to the Milburn Report, welcoming its findings but also labelling it a ‘wake-up call’.
The BCC stated that the report outlines a ‘growing mismatch’ between what firms need and how young people are effectively supported when entering work. It also highlighted that the UK labour market has changed, with entry-level roles declining and recruitment processes becoming increasingly complex. Additionally, employers reported issues surrounding work readiness and support requirements.
Several insights have been made by the BCC. The business group has called for the report to serve as a wake-up call for policymakers and said that there is a ‘clear appetite’ amongst firms to employ young people and invest in future talent.
The business group has called for urgent and co-ordinated action, including earlier careers education, accessible training routes and reducing costs for employers taking on young people.
Opportunities missing
Meanwhile, the FSB stated that too often, the opportunities are not there for young people to start their careers. It also raised the issue of soaring employment costs on businesses’ hiring intentions: employment costs, the FSB said, are ‘a major factor’ when it comes to the number of young people not in education, employment or training (NEETs). It said that although small firms are keen on hiring young people, they cannot afford the wage bill. This is ‘particularly prevalent’ in the hospitality and retail sectors.
The FSB has called on the government to place a far stronger focus on investing in work itself. It believes that, too often, more public money goes into managing economic activity than helping small firms create the jobs, placements and opportunities that prevent young people from falling out of work in the first place.
According to the business group, young people will lose out on vital opportunities if the government continues to raise employment costs and tighten regulations. The FSB has urged the government to use the Autumn Budget to increase the Employment Allowance so small businesses ‘are not priced out of creating the very jobs and apprenticeships ministers say they want to see more of’.
Time will tell as to whether the business groups’ recommendations will be implemented and the UK labour market improved for young people seeking work.