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Youth unemployment: What's the truth about youth unemployment?

9 mins read
The Government places great store in its track record on tackling unemployment. But with almost one in four 16- to 17-year-olds now out of work, are its youth employment policies starting to unravel? Andy Hillier reports.
Long-term youth unemployment has been virtually eradicated. Overall jobless figures are the lowest for 30 years. Or so ministers keep saying.

The Conservatives tell a different story, however. They claim that more than a million young people are not in employment, education or training.

And the number of economically inactive 18- to 24-year-olds is now 22 per cent higher than it was before Labour came to power in 1997.

So who is telling the truth? Paul Bivand, head of analysis and statistics at the Centre for Economic and Social Inclusion, says it depends how the figures are interpreted. "To say Labour has eradicated youth unemployment is stretching a point, but it does have a case," he says. "What they are saying is that they have eradicated the long-term youth jobseeker's allowance claimant count. Yet there has been a noticeable rise in the number of unemployed young people in the past few months."

According to February's figures, there were 468,000 unemployed 18- to 24-year-olds and 186,000 young people aged 16 to 17 out of work. A further 2.6 million 16- to 24-year-olds were economically inactive - those not included in the employed or unemployment count, such as young mothers.

Official statistics also show a record high in the unemployment rate among 16- and 17-year-olds, with almost one in four registered as out of work.

Criticism mounts

Philip Hammond, shadow work and pensions secretary, is highly critical of the Government's track record. "Gordon Brown claimed he would not be satisfied until he removed the scar of long-term unemployment from the face of Britain," he says. "Recent figures show he is failing to achieve this goal. It is clear Labour's welfare to work policies have not delivered and are letting down young people."

The unions are also beginning to express concern. Richard Excell, senior policy officer at the TUC, says that although it is not sounding the alarm just yet, it will be interesting to see what happens in the next few months.

"It's difficult to tell whether it's just a seasonal blip or something more long term," he says. "But there is a worrying trend for youth unemployment to rise sharply as the labour market begins to soften."

However, Paul Bivand shares the belief that this could be a temporary problem, pointing out that unemployment is historically higher among the younger age group, especially during the winter. "At the moment youth unemployment is going through a sticky patch, but there is nothing that indicates we're on the brink of a crisis," he adds.

The gradual rise in youth unemployment can be traced back to 2000. Annual comparisons for the months September to November (see table, p18) show that 552,000 young people were unemployed in 2000. By September 2005, this had increased to 650,000, although the youth population also rose during this time. But despite the increase, the youth unemployment rate is still significantly down on the final years of Conservative rule (see table, p18). Then, unemployment among 18-to 24-year-olds regularly fluctuated between 14 and 17 per cent, compared with between 10.4 and 12.5 per cent under Labour's subsequent tenure.

The key contributing factor to the fall in youth unemployment has been the encouragement of young people to stay on in education or training.

According to a Department for Education and Skills study, Participation in Education and Training and Employment by 16- to 18-year-olds in England, 1.5 million young people were in training and education at the end of 2004.

Nick Isles, director of research consultancy The Work Foundation, says this has been a deliberate attempt to keep the young away from the unemployment line. "There's been a definite shift in tackling youth unemployment," he says. "If young people are learning, then they're not claiming benefits. The Government has worked hard to move the young away from the employment market and into education."

To increase the number of young people in education and training, a number of initiatives have been introduced, such as education maintenance allowances.

These come in the form of weekly payments of between 10 and 30 and are given to young people from low-income families studying towards a recognised qualification. Although the scheme is still in its infancy, a study last year showed increased participation in education by as much seven per cent in the areas where they were introduced.

Vocational learning

Work-based initiatives have also been pushed strongly. Schemes such as Entry to Employment and Programme Led Pathways have been set up to help young people develop the vocational skills they need to gain a foothold in the job market. The number of Apprenticeships has also risen sharply.

At the last count, there were 255,000 young people aged 16 to 24 taking part in the programme, nearly double the amount that took part five years ago. But demand for such programmes continues to outstrip supply. A recent Connexions survey suggested at least another 32,000 work-based learning placements were required to meet the needs of 16- to 17-year-olds alone (YPN, 15-21 February, p7). And a document produced by the Apprenticeships Task Force urged the Government to ensure that enough resources were available to enable employers to offer Apprenticeships to 35 per cent of young people by 2010.

The New Deal for Young People has also had a major impact. Under the programme, young people aged 18 to 24 out of work for more than six months are given help to draw up a work action plan to assist their direction.

If they fail to secure work or training within four months, they are offered a range of additional support and extra assistance in applying for jobs.

Since the programme was established in 1998, the Government claims it has helped more than 630,000 young people find jobs and benefited the economy by up to 500m a year.

Although Isles doesn't believe all the Government rhetoric, he says it's hard to make a case against New Deal. "There's no doubt it is having a real impact on getting hard-to-reach young people into the labour market," he says.

The Centre for Economic and Social Inclusion's Bivand also credits the programme with helping to boost the UK's employment record internationally.

"If you look at the International Labour Organisation figures on youth employment, the UK compares favourably with other countries," he says.

"The main reason for this is that young people are placed on the New Deal programme, whereas most other countries don't have such a scheme."

Hidden issues

The programme is not universally popular, however. The Conservative Party claims that it masks the true extent of unemployment and does little to tackle the causes of long-term unemployment.

"The Government really needs to re-evaluate its approach both to long-term unemployment and the increasing number of economically inactive young people," says Hammond. "For all Labour's claims it is not clear if the New deal for Young People is delivering - either jobs for young people or value for money for the taxpayer."

The Conservatives are so against the programme that they have vowed to scrap it if they win the next election. The scheme has also proved unpopular with some of those it was designed to help the most. According to Steve Hillman, learning and services manager at The Foyer Federation, which helps young people experiencing social exclusion to live independently, this is because it sometimes fails to take into account individuals' needs.

"We have many cases where our residents have been taken out of full-time college and placed on New Deal," he says. "This isn't always the best course of action for the young person. Many would have preferred to have stayed at college, but they've been told it's in their best interests to go on to New Deal."

Finding a job may be statistically easier now for young people than a decade ago, but finding meaningful employment remains a problem. Many employers in sectors such as retail and industry rely heavily on young staff, paying them the minimum wage of between 3 and 4.25 an hour and offering limited training opportunities or chances for career progression.

Gregory Perkins, 19, who attends the LIVE magazine project in Brixton, southwest London, worked at supermarket chain Somerfield for two years before leaving to do a training course. He says it can be hard for young people on the bottom rung of the job ladder. "Working in a supermarket was the only job I could get when I left college," he says. "I took it because I needed the money and knew I didn't have the qualifications to get anything better. But I realised I wanted more out of life."

Hillman believes such stories are replicated across the country. He says that the feedback he receives from Foyer residents is that most can find employment but the jobs don't necessarily cover the bills.

"Many of the jobs are low paid and seasonal, which provides a disincentive to work," he adds. "Some young people think they're better off on benefits."

Opportunity must knock

Jenny Rudge, chief executive of Connexions Cornwall and Devon, shares Hillman's view. Rudge has worked in the careers advice sector for nearly 30 years and says despite the excellent advances made in tackling youth employment, the quality of jobs available remains poor, especially in low-wage economies such as Cornwall and Devon. "Many of the jobs on offer don't come with proper qualifications or good levels of pay," she says.

"Not enough employers taking on young people offer recognised NVQ-level training, which poses problems when the young person wants to move on."

Rudge believes the answers could lie with the young people themselves.

"There must be more opportunities for young people to set up their own businesses and to help them become entrepreneurs," she says. "There needs to be more chances for them to make the most of these skills."

But for those young people relying on the traditional labour market, finding a job is becoming harder, even if statistically their choices are a lot better than a generation ago.

DARREN OPTS TO BECOME AN APPRENTICE

Darren Middleton, 18, is currently an apprentice at the British Gas Engineering Academy in west London. He comes from a stable home and went on to complete his A-levels after studying for his GCSEs. He joined the British Gas Engineering Academy after deciding that further education wasn't for him. "I had lots of options open to me when I left school but becoming a gas engineer was definitely my favourite," he says. "I liked the idea of doing something practical and earning a bit of money while training."

He found the job after searching for apprentice schemes on the internet and joined the scheme three months ago. "It's really good," he says. "You learn lots about the technical side and have a good laugh at the same time."

He currently earns 12,000 but when he qualifies in 13 months' time this will rise to 20,000. Many of his friends are in education or training and, he says, like him they are now reasonably confident about finding suitable work. "I don't think any of them think they won't get a good job," he says.

DIANNE'S CAREER HOPES

Dianne Namara, 20, is a young mother from southwest London. She moved to London from Uganda in her mid-teens and currently attends the LIVE magazine project in Brixton. When she finishes the course, she'd like to either find a job in journalism or go to university. "I'm feeling really confident about finding work," she says. "I've learned loads and think I've got the type of skills employers are looking for, such as editing and online publishing."

But finding work is not easy for everyone, she admits. Many of her friends are also from minority ethnic groups and struggle to find meaningful employment.

"It can be really hard if you're from a foreign country," says Dianne.

"I've known people to change their names on their CVs just to get an interview. I refuse to do it but some of my friends with the same qualifications have applied for jobs and only those with English-sounding names have been offered interviews."

The way to combat this is to gain as much experience as you can and have the right qualifications, Dianne believes. "You just have to make sure you have a 'good-looking CV'," she says. "It gives you the edge. It's a fast-moving world so you have to stand out from the crowd."

LOW EXPECTATIONS

Many young people from disadvantaged backgrounds have low career aspirations, which often stops them from fulfilling their own potential, says Dianne.

All too often they are willing to accept any job that comes their way.

"My first job was at the clothing shop New Look, but I knew it was only a short-term thing," she explains. "But you get lots of young people who go off and get part-time jobs in places like sports shops and think they've got everything they need. They have a bit of money and can afford to go out with their friends, so they stop looking further. It's quite sad really."

The fact she has a 20-month-old son will hinder her chances of finding employment, she believes, but it won't stop her pursuing a full-time career.

"I know if I put in the time and the commitment I'll find something suitable," she says.

UNEMPLOYMENT RATE FOR 18- TO 24-YEAR-OLDS 1997 Sep 12.5% 1998 Sep 12.0% 1999 Sep 10.0% 2000 Sep 10.6% 2001 Sep 10.5% 2002 Sep 10.4% 2003 Sep 10.4% 2004 Sep 10.6% 2005 Sep 11.9% Source: Labour Force Survey.

ECONOMIC ACTIVITY AMONG 16- TO 24-YEAR-OLDS Year Economically Economically Total Employed Un- active inactive employed Sep-Nov 1997 4,549,000 1,732,000 6,281,000 3,950,000 600,000 Sep-Nov 1998 4,519,000 1,725,000 6,244,000 3,904,000 615,000 Sep-Nov 1999 4,496,000 1,756,000 6,252,000 3,938,000 557,000 Sep-Nov 2000 4,456,000 1,839,000 6,295,000 3,904,000 552,000 Sep-Nov 2001 4,577,000 1,838,000 6,415,000 4,016,000 561,000 Sep-Nov 2002 4,620,000 1,928,000 6,548,000 4,051,000 570,000 Sep-Nov 2003 4,667,000 2,030,000 6,697,000 4,112,000 555,000 Sep-Nov 2004 4,737,000 2,103,000 6,840,000 4,144,000 593,000 Sep-Nov 2005 4,719,000 2,232,000 6,951,000 4,069,000 650,000 Source: Labour Force Survey, Office for National Statistics.


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