The news is full of the latest youth unemployment figures which are at a record high, with unemployment among under-25s now over a million.These are the highest figures since records began in 1992, so what has been the Government’s solution to this growing problem?
In a recent breakfast summit at Downing Street, David Cameron sought to identify barriers that prevent companies, especially small and medium-sized ones, from hiring more young people as apprentices, whether it’s red tape, minimum pay rates, or the training available from colleges.
As a result a raft of new initiatives has been announced over the last few weeks to combat the growing concerns about this issue.
There’s the Youth Contract, which will create at least 410,000 work places for 18 to 24-year-olds from next April at a cost of £1 billion; wage subsidies worth £2,275 will be handed to employers to take on 160,000 18 to 24-year-olds; and there will be extra funding for apprenticeships. There’s also £50 million for a programme to help 16 and 17-year-old NEETs (those not in education, employment or training).
However, a report by the Institute for Public Policy Research think tank says that government apprenticeship schemes have not helped enough young people in the past – just 37,000 of the 126,000 apprenticeships created last year went to 16 to 24 year-olds.
The work placement scheme currently operating through job centres offers work experience to young people on benefits. A proportion of these young people do manage to secure employment following the placement but there have also been criticisms that suggest it does nothing to break the cycle of unemployment and poverty, but is actually verging on exploitation.
Do these kinds of placements, often low-skilled work, really help young people gain valuable skills and experience for the future? Are they of any value to businesses particularly if there is no-one available to train and supervise them – surely a growing feature of companies already on stretched staffing ratios?
When the placements are properly structured, with support from an appointed member of staff, they do provide the type of work experience that is going to benefit young people and help them gain future employment.
But what many young unemployed people need more than anything is a responsible and knowledgeable adult who can provide them with one to one guidance and advice about their career, and their life in some cases, to inspire and motivate them.
Many young people lack confidence in themselves and in the future, so are handicapped before they even begin to think about a job. These are the kind of services that have been cut and are unlikely to be provided because they are expensive and time-consuming.
Companies who are able to provide both work opportunities and staff who can mentor or coach young people will reap the rewards both for their company and in providing a skilled and focused workforce for the whole business community in the future.
Without this investment in young people now, what hope is there in the future of competing with other economies across the world? Do we want a whole generation of disaffected, unskilled young people moving into adulthood with all the problems that brings to our communities and society as a whole?
Janet Dunnett works for Onside Northwest, a charity working with businesses and the public sector, to build a network of 21st century Youth Zones across the North West and beyond, that will give young people somewhere to go, providing both leisure and work-based activities including long term mentoring and coaching.
Watch a video of Peter Chambers, a partner at PricewaterhouseCoopers, sharing his thoughts on why supporting young people should be a priority for all businesses.
