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Tackling high youth unemployment should be a key priority

By David Bailey on Apr 22, 12 11:56 AM in Economics


Unemployment declined by 35,000 in the three months to February to 2.65 million, the first fall since May 2011. While that's of course good news, the number of people claiming unemployment benefit is still rising, with the total number of people in receipt of jobseeker's allowance standing at 1.61 million in March.

Nevertheless, some analysts see the recent slight fall in unemployment as the first sign that the economy has returned to modest growth. Let's hope they are right.

Youth unemployment also declined slightly, by 9,000 in the three months to February, leaving 1.03 million 16 to 24 year-olds looking for work. The unemployment rate for this age group is still over one-in-five, the worst in 25 years, and what's especially concerning is that there was another increase in the number of young people who are long-term unemployed.

In fact, over the last year, the number of young people claiming jobseeker's allowance for 12 months or more has tripled.

In short, youth unemployment is unacceptably high. Of course, the biggest driver of the growth in long-term youth unemployment is a lack of demand in the economy and the fact that there aren't enough jobs.

But to be fair to the government, there was a problem in youth unemployment (albeit not nearly as bad as now) even before the banking system went belly up back in 2008. And it's young people with few or no qualifications in particular who can't find jobs.

The recent Commission on Youth Unemployment highlighted the "lack of vision for the 'forgotten half' of young people who are not destined for university or a high-quality apprenticeship post-16". In essence there is a failure of government policy for this 'forgotten half', most recently linked to some key policy errors like scrapping the Future Jobs Fund.

There are things that can be done. As I've said for ages, a targeted and temporary cut in employers' national insurance contributions for young workers could help boost the demand for labour, for example.

And as the Commission on Youth Unemployment has suggested, the government could do much more, such as 'frontloading' its youth contract initiative by doubling the number of job subsidies available in 2012, or by giving young people a guarantee of a part-time job if they have been on the government's Work Programme (which is meant to tackle long-term unemployment) for a year without finding a job.

Here in Birmingham I'd like to know what potential mayoral candidates would hope to do to bring down the unacceptably high rates of youth unemployment (and unemployment more generally) in the city.

And more generally, we really do need to challenge the view that it makes any sense at all to allow youth unemployment to remain so high. It doesn't, either for the young people unemployed, or for the wider economy and society.

Professor David Bailey works at Coventry University Business School.

5 Comments

Mr Srutineer said:

Prof Bailey,

The problem is this, a very large number of the youth you mention have no qualifications, life skills, manners or common sense. The behaviour of some of them is appalling. This is a fact.

For the record I went to an inner city comprehensive school, and together with my fellow school mates we made the most of the education that was available. We passed our "O" Levels and "A" Levels. Some of us went to University and others took any available job. Make no mistake, when we left school or University we were in the middle of a recession, but we took whatever job or opportunities that were available to get ourselves started.

The majority of the youth of today have not got a clue. They leave school without even the most basic communication skills and manners, let alone having reading and writing skills upto an acceptable standard, but with sky high expectations. They have had the same opportunities that I and my generation have had, if not better. (I didn't get an EMA to attend an education institute?)

So do you expect a private sector business to employ them?

It's an uncomfortable fact and doesn't make for pretty reading, but sorry, it is a fact.

Regards,
Mr Srutineer.

N Mears said:

There is an amazing reality check here which is the crux of the real problem.
We are all different!
The problem is that we are expected to be the same, to conform to what is already insufficient - the same as the person that had the role before - the same as the person that created the job spec and the same old people employing them. If you want clones then you will have to breed them, but why have clones that are actually as bad as the ones you had before, its just you are too short sighted to see anyone who might be better, different or infact can enhance the role more.
We have made it harder to change because HR has set such complex standards and processes and made it impossible for anyone to show their real talent.
If you want to change the talent pool - then give them the chance to Realise their Real Potential - only through changing how we nurture talent at an early age can we change the way our talent evolves.
Provide better nurturing and understanding of how to develop yourself and your real skills and change the complexity of HR and recruitment and the problem will just be a case of mind over matter.....
http://minervaitevolveme.blogspot.co.uk/

Mr Srutineer said:

N Mears, I have not said anything about creating clones or advocated that everyone should be the same? My point is that there are too many individuals leaving school without basic verbal communication, reading and writing skills. It is common sense that you need these basic skills to get on in todays modern world, and this does not prevent individuals expressing themselves or diversity. It actually does the opposite and promotes diversity and expression.
The fact is that the education system was destroyed by the Labour Government. They lowered standards so that every pupil could say they "passed" their exams. The whole point of the exam is to differentiate between different abilities and talent, and then the individuals can choose a career path which plays to their strengths. Today we have individuals leaving school with exam passes, but who are still unable to read. spell, add, subtract and simply verbally communicate! This is a fact, and is being highlighted by more and more Universities and Colleges.
We need individuals to become doctors, nurses, mechanics, public servants, teachers, plumbers, builders, etc. Labours policy of reducing standards and sending everyone to University has been a disaster. Not everyone needs to go to University to get a rewarding career, but everyone needs basic communication, reading and writing skills!
And I don't expect the ConLib Government will change this situation that Labour created.
As I said in my original post, it makes for uncomfortable reading, but that doesn't mean it is not a fact.

Regards,
Mr Srutineer.

john fairest said:

Politicians need to start listening to the public
At onthedole.com we are monitoring blog comments from key areas of unemployment like Midlands, North East and Humber areas
DWP needs to adapt quicker to what is happening and become more effective at meeting the need of the user not the directive of special advisers who may be benefiting from the advise being providing

john fairest said:

Taking into consideration the challenges of dealing with call centres we have just published the following support.
http://onthedole.com/page/dwpcallcentres
We will also provide support in respect of Tax Credits

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