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Youth

UK's Youth Unemployment Hits Record High, CBI Presents Five-Point Plan to Tackle Crisis

Strategic Insights

— 2 min read

The United Kingdom's youth unemployment has reached its highest level since official records began, with 947,000 individuals between the ages of 16 and 24 out of work. The Confederation of British Industry (CBI) has responded to this crisis with a five-point plan to tackle youth unemployment, emphasizing the importance of apprenticeships and the need for a cautious approach to minimum wages. The CBI warns that setting too high a minimum wage for apprentices could deter businesses from offering these training programs, exacerbating the youth unemployment problem.

Key Takeaways:

  • The number of youth unemployed individuals in the UK has reached a record high of 947,000, with those aged 16-24 and out of work making up this figure.
  • The CBI's five-point plan aims to tackle youth unemployment by helping employers offer more apprenticeships, ensuring that employing young people is attractive, providing practical help for young people to get a job, offering more young people work experience, and ensuring the education system teaches basic skills.
  • Most apprentices in England are already paid above the minimum weekly wage of £95, with an average weekly wage of £170.
  • The CBI recommends that the Low Pay Commission exercise restraint when deciding whether to bring apprenticeships into the national minimum wage rules.
  • The CBI accepts that apprentice pay should be brought into the NMW, but recommends maintaining minimum pay at the weekly apprentice rate of £95 currently set by the Learning and Skills Council in England.
  • The CBI's concerns around apprenticeship pay complement its recent announcement of the five-point plan to tackle youth unemployment.
  • The five-point plan includes a subsidy of £2,500 for firms that offer additional apprenticeships to young people, or employ an apprentice for the first time.
  • Universities should offer additional practical sessions to help students get a job or start a business.
  • Public and private-sector employers should open up work experience schemes to young people who are not in education, employment, or training (NEET).
  • Schools and colleges should emphasize the need to develop 'employability skills' such as communication skills and self-management.

Statistics:

  • 947,000 individuals between the ages of 16 and 24 are out of work in the UK (ONS records).
  • Most apprentices in England are paid above the minimum weekly wage of £95, with an average weekly wage of £170.
  • Apprentices are already covered by a minimum weekly wage that is significantly higher than for apprentices across the UK's EU competitors.
  • Minimum weekly pay for apprentices in Scotland, Wales, and Northern Ireland is £55, £50, and £40 respectively.
  • The CBI recommends maintaining minimum pay at the weekly apprentice rate of £95 currently set by the Learning and Skills Council in England.

Sources:

  • Confederation of British Industry (CBI)
  • Office for National Statistics (ONS)
  • Learning and Skills Council (LSC)
  • Low Pay Commission

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