Labour has been warned that the UK risks creating a 'lost generation' of young people as youth unemployment soars to its highest level in a decade. The unemployment rate for 16- to 24-year-olds now stands at 16.2 per cent, more than three times the national average of 5 per cent, and the highest since 2014.
Lord Wolfson, chief executive of Next, told the BBC that the number of applicants for entry-level shop jobs has doubled in just two years, describing the situation as 'indicative of just how big the crisis in youth unemployment is at the moment'. His comments follow former Labour minister Alan Milburn's call for a 'complete system reset' to address the nearly one million young people not in employment, education, or training (Neet).
Despite the bleak picture, some employers report a paradox: while many young applicants lack resilience and retention, those who demonstrate commitment through sustained part-time work or self-taught skills are highly sought after. In interviews with over 100 companies, including KPMG, Deloitte, and Disney, a clear preference emerged for candidates with customer-facing experience and evidence of sticking with roles, such as working in a coffee shop or bar for a substantial period.
One graduate, Riley, 23, was told her solid work history from age 17 secured her a job at an investment bank. Another, James, 25, taught himself conversational Japanese and gained deep knowledge of the country's culture to secure a place on a competitive teaching programme in Tokyo after two rejections.
Employers are also calling for a overhaul of recruitment processes, moving away from AI-screened CVs toward video applications and skills-testing to better identify genuine talent. The challenge for young people, experts say, is to stand out by acquiring specific, industry-relevant skills and demonstrating resilience in a market where even the most aspirational companies struggle to find reliable hires.
