In the next five years, 1.2 million young people are forecast to be unemployed. This is not just a national issue. Youth unemployment percentages internationally set an alarming global trend. In Spain it is 40 per cent, the Middle East and North Africa averages 25 per cent, and in the US and France it is also above 20 per cent.
I have spoken to different City firms that share concerns over youth unemployment. I have outlined how the UK should focus, co-ordinate and lead by example in supporting our disadvantaged young people. The education system is failing to prepare young people for work. Too many are unable to read and write. The Wolf report on vocational education highlighted that many study qualifications that actually harm their long-term prospects. What's more, the labour market is failing to provide the right jobs in the right places, leaving many with limited opportunities or skills that do not match the local economy.
Recent debate has focused on whether youth "unemployment" or "Neets" (young people not in education, employment or training) is a better indicator of the social distress experienced by young people. Such a conversation just symbolises the lack of leadership and understanding about the problem.
Last month, we launched our Manifesto for Action for young people who are Neet. It incorporated the feedback of local authorities, employers, central government, think-tanks and the voluntary sector. It proposes a number of recommendations for system-wide change around four key strategic themes of leadership, investment, delivery and best practice.
The most important theme to start with is leadership. This is vital if we are to improve co-ordination and support for at-risk young people. A Neet taskforce could take a leading role and co-ordinate policy. Alongside this, prevention is key. Resources should be allocated according to likelihood of becoming Neet and tackle the issues a young person faces early on. The publication of transparent information on performance - a standard Neet metric - would create objective comparisons of results, which would drive the focus of delivery on supporting Neet young people.
After leadership, we are acutely aware in the current economic environment that investment is desperately needed. For too long, the voluntary sector has been starved of long-term financing for interventions that are proven to work. We need to understand financial options. Better collaboration between local authorities and service providers as well as standard processes to reduce red tape will help to target resources towards the frontline.
In terms of delivery, Neet young people are confused by the myriad of different agencies that cross a variety of departmental boundaries. To tackle this, there are three areas that need attention. First, we must increase the best provision by creating commissioning networks and business support for the best providers. Second, we must foster better informal links between businesses and the public and voluntary sectors and make it easier for employers to engage with young people. Third, a case-management approach to patch together the support to those who need it should be widely available. This will help those at risk of being Neet to navigate the support services they need. Finally, it is critical that we communicate best practice to everyone.
Young people from disadvantaged backgrounds are facing a tough jobs market at a time of reduced support services. This issue will continue to be nobody's priority unless we act together. We have a manifesto for action. As the next generation of Neets enters the school gates, the time for action is now.
Shaks Ghosh is chief executive of the Private Equity Foundation
