For a few days at least, political attention is focused on young people aged 16-24 who are not in education, employment or training (known as Neets). A report from the commission led by Alan Milburn, a former health secretary, shines a bright light on a group that needs it. The document concentrates on analysis, with recommendations due in the autumn. Describing problems is generally easier than solving them.
The latest figures record more than 1 million Neets – one in eight of their age group; 60% are economically inactive, meaning that they are not looking for work. The report warns that there will soon be more unless action is taken. It points out that this issue is too often approached from the wrong direction. Political attacks on welfare spending and mean-spirited criticisms of “kids these days” are a distraction from the facts about unemployment, rising ill health and inadequate training. The UK’s poor track record compared with other countries proves that this is a policy failure.
Mr Milburn’s pitch is that this generation should be a new mission for the government, which took office without a clear enough sense of purpose or detailed plans. This is a good call. The expansion of higher education was not matched by anything like enough thought about the more than 60% of young people who do not go from school to university. Housing inflation has made it harder for young adults to leave home. Mr Milburn has also grasped something significant about the disorienting effect of technology for young people perpetually plugged in to the online world, but without a role in their local economy.
The decline in entry-level jobs in hospitality, leisure and retail has been disastrous for a cohort that would have hoped for a first chance in these sectors. Many submit dozens of applications without receiving a response beyond a pro forma “no”. Individuals who are unusually bloody-minded may triumph in the end. That does not change the overall situation. Health-related universal credit claims have risen more in places where there are fewer jobs. Thinktanks as well as employer groups have pointed to the adverse effects of rising costs on hiring.
But the problems start earlier. Recent educational reforms, such as overly restrictive GCSE combinations, have served less academic pupils poorly. While the government has made some improvements, it has also undermined the further education sector with a chaotic series of announcements about qualifications. The apprenticeship levy introduced under the Conservatives was a disaster, with funds diverted to existing staff while starts among young people fell by 35% in a decade. If schools and colleges are expected to prepare children for work on top of existing responsibilities, they will need resources.
As with many difficult policy areas, one of the challenges of addressing all this is that it straddles government departments: work and pensions, health, education and business. What the country needs, the report says, is a completely new “participation system”, whereby public services pull together to encourage work. This is a constructive framing, but it sounds like a mammoth task.
As automation continues to disrupt the world of work, while investors rake in profits from stock markets high on AI, the biggest piece of the jigsaw is jobs. Ministers absolutely should make more effort to get young people work-ready – but at the end of it, there needs to be work.
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