Youth unemployment is at a decade-high. Ignoring it will breed division
Being left behind while others prosper creates fertile ground for extremism. That’s just one reason to take youth unemployment seriously, writes Russell Hobby, CEO of education charity Teach First
The central problem of the UK economy is growth – or, more precisely, the lack of it. Growth in the most recent quarter was a barely noticeable 0.1 per cent. A stagnant economy means stagnation in every aspect of our national progress. Public services go unfixed, communities lack investment and the consequences ripple through every corner of society.
This is why it is both an economic failure, and a stain on our conscience, that today it was revealed that 946,000 young people are currently NEET – not in employment, education or training. This is the highest number of NEET young people in a decade – enough to fill Wembley Stadium more than 10 times and 40 per cent more than the entire workforce of Canada.
Even worse, this gap in opportunities closely matches the gap in class and wealth in our country, creating a vicious cycle of exclusion and poverty. If you grew up on free school meals, you are twice as likely to be NEET five years after school than your more affluent peers. It’s a tough job to create a united and cohesive society with those kinds of fractures at its core. Extremism has many causes, but being left behind while others prosper creates fertile ground for it to grow in.
But the costs of those leaving school and becoming NEET are not just social. The Recruitment and Employment Confederation estimates that skills shortages are costing our economy £39bn a year, and the CK Group projects the STEM skills gap alone will cost the economy £120bn by 2030. This isn’t due to lack of people, but a lack of training.
The opportunities in emerging industries – green energy, AI, biotech and more, depend on a highly skilled workforce. Wise choices about how to deploy technology and solve our problems depend on a highly educated workforce. Without investment in our nation’s young people, we risk being locked out of these future-facing industries and delivering the growth our country desperately needs.
The inequality which exists in our education system has reached alarming levels, with those growing up in the highest levels of poverty now nearly two years behind their peers by the time they leave school. These children are born with the same hopes and dreams, but the effects of poverty and unequal access to a high-quality education shuts the door on their futures. Their wasted potential harms us all.
There is no magic wand to narrow these persistent gaps but there are strategies that, if pursued consistently, will gain traction. We need to attract our brightest and best into teaching and get them to work in the communities where they can make the greatest difference – the single most powerful lever for change. And we do this by paying them fairly and treating them well.
We also need to weight our limited funds towards the communities who need them most. Young people who are NEET are significantly more likely to live in disadvantaged areas, meaning that investment in education and training within these communities will have the greatest impact. We also need to pay more attention to further education.
This is not a job for the government alone; businesses have their own role to play and stand to reap significant gains if we get this right. Leading businesses including IG Group and BDO have worked closely in partnership with Teach First over several years and have proven they can fuel their talent pipelines by working with schools and investing in young people’s career aspirations. They can open young people’s eyes to the hidden variety of satisfying jobs by offering meaningful work experience. They can help young people make good and informed choices by sharing their own career paths. The companies who do this also find an extra benefit – it inspires and engages their existing staff too.
Investing in young people’s futures is an investment in our future too, with a return measured in economic growth, social justice and national cohesion. Unlike the complexities of tariffs, trade wars and global conflicts, it is a choice that is wholly within our control. If we don’t seize this opportunity, the full promise and potential of another generation will be squandered.