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The government needs to take action to support young people in the jobs market, the Chartered Institute of Personnel and Development (CIPD) has said, as new figures show unemployment rose to 5% in the three months to September.
The Office of National Statistics data shows unemployment is at the highest rate since the period covering December 2020 to February 2021.
The rise was higher than predicted. Many experts forecast it would be 4.9%.
James Cockett, senior labour market economist for the CIPD, said:
“Young people have been particularly hard hit by the surge in unemployment highlighted in today’s statistics, suggesting employers are shying away from hiring those with more development needs because of the additional costs involved. The percentage of 18–24-year-olds unemployed for over 12 months is the highest it’s been in a decade.
“It seems no coincidence that yesterday the government announced an inquiry to tackle the number of young people who are not in education, training or employment. Whilst a positive step, any actions resulting from this may be too late for many, as time outside of the labour market early in working lives can have long term negative effects on future employment prospects and earnings.
“More immediately, the government can support the labour market by avoiding adding further costs on employers in the Budget later this month, as it’s likely young people will continue to be hardest hit by any hesitancy to hire.
“We also need the government to take stronger action to support young people in securing training and employment by introducing an apprenticeship guarantee for 16 to 24-year-olds. This will offer valuable training and employment opportunities for young people, providing them with the best possible start to their working lives, and has significant support from employers.”
Almost one million young people, approximately one in eight young people aged 16 to 24, are currently not in education, employment, or training (NEET).
