UK Youth Employment Crisis: A Lost Generation?

View profile for Adam Payne FInstLM

SME Growth Strategist | Business Advisor and Mentor | Guiding SMEs to Scale with proven frameworks for Growth, Strategy and Operations | 30+ Years Experience | 6x Founder | Lifelong Learner

Are We Creating a 'Lost Generation'? Inside the UK's Youth Employment Crisis Since the 2024 general election, we've seen a pretty significant drop in youth employment. Nearly 200,000 young workers have vanished from UK payrolls, with the sharpest declines among under-18s. It's not just the youngest, though the 25-34 and 18-24 age groups have taken a hit too. The numbers are a bit stark, to be honest. Youth unemployment's now over 14%, which is more than triple the overall rate. Every region in Great Britain's feeling it, with Wales and London hit hardest. Now, it's not all doom and gloom. Employment among mid-career and older workers has actually grown. Could this be seen as a positive? Experienced workers staying in or returning to work, potentially bringing valuable skills and knowledge to the table, or they’re struggling with the cost of living and subsequently making decisions to earn more? But here's the thing: while it's great that older workers are finding opportunities, we can't ignore the potential long-term consequences of youth unemployment. We're talking about lower lifetime earnings, reduced well-being, and persistent skills gaps. Some business groups are even warning of a "lost generation" if we don't address this soon. So what's behind all this? Well, it's a bit of a perfect storm, really. There's been a sharp increase in minimum wage for younger workers, which sounds good on paper, but it's closed the wage gap between older and younger workers. This might be making employers think twice about hiring inexperienced youth. Then we've got the economic headwinds, especially in the private sector, which have hit entry-level roles hard. These are the jobs typically filled by young workers. And let's not forget the reports of rising age discrimination. Nearly all surveyed young people say they've experienced negative treatment in the workplace. That’s disheartening. On the flip side, the public sector's expanding and public pay is outpacing private pay. But opportunities for young people in growth sectors still seem limited. It's a complex issue, and I think it's important we look at it from all angles. Yes, we want to support our experienced workers, but we also need to ensure we're not leaving our youth behind. The rise in young people not in education, employment, or training (NEET) is particularly concerning. It's the second highest hit in a decade 12.8% (the first 2015 13.2%), with mental health increasingly cited as a barrier. So, what's the way forward? I reckon it's going to take some serious collaboration between government and business to address these barriers to youth employment. We need targeted support measures and a real commitment to creating opportunities for young people. If we don't invest in them now, we might all pay the price later. What are your thoughts? #YouthUnEmployment #UKManufacturing #UKSmallBusinesses Sam Baynham Andrea Wilson Ruth Forster Amy Foster Mandeep Sandhu Laura Giddings

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Amy Foster

Chartered FCIPD | Workplace Mediator | Youth Employment Mentor | Innovator | Charity Board Director

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Young people are facing fewer opportunities to enter the workforce—and that could shape their entire careers if things don’t change. Rising minimum wage and higher NI contributions have pushed many businesses into survival mode rather than growth. In today’s candidate‑rich market, employers can hire experienced staff at little extra cost, leaving fewer reasons to invest in training the next generation. On top of that, it’s extremely expensive to take driving lessons and run a car. Driving can open doors to more opportunities—if you can afford it. Poor transport links and living far from industry or retail areas only make things harder. How many of us started off with a small part‑time job while still at school? I worked on a milk round. Those early jobs gave us confidence, skills, and a first step into working life. For too many young people today, those stepping stones are disappearing.

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