Youth Jobs Crisis Fuels UK Unemployment Surge
Britain faces a mounting youth employment crisis as new figures reveal under-25s are bearing the brunt of job losses since Labour came to power. Exclusive Guardian analysis shows youth unemployment has climbed to 15.3% - more than three times the national average for people aged over 16.
Alarming Statistics Paint Bleak Picture
Since June 2024, nearly half of all jobs lost from company payrolls - 46% of 170,000 positions - have disappeared from the under-25 workforce. This translates to more than 150 youth jobs lost every day, creating what former Labour education secretary David Blunkett warns could become a "lost generation" on Keir Starmer's watch.
"I think we've got to get our act together," Blunkett told the Guardian. "It's a lost generation and if we don't do something now the consequences economically, societally and personally will be devastating." The prominent New Labour figure urged Starmer to consider launching a modern version of Tony Blair's 1990s New Deal for young people.
Economic Policies Under Scrutiny
The crisis has intensified political tensions ahead of the autumn budget, with government critics pointing to Chancellor Rachel Reeves's £25 billion increase in employer national insurance contributions as a key factor. The Bank of England has warned this tax rise has particularly dampened hiring in hospitality and retail - sectors traditionally providing crucial first-step employment for young people.
Shadow chancellor Mel Stride didn't mince words: "Any lost generation is on the chancellor. You don't get more young people into work by punishing the very businesses that hire them."
The Liberal Democrats' Treasury spokesperson, Daisy Cooper, called for immediate action, demanding Reeves reverse the tax increase in the 26 November budget.
Long-Term Challenges and Government Response
Beyond immediate job losses, long-term youth unemployment has reached concerning levels. The number of 18- to 24-year-olds unemployed for longer than 12 months has surged to 137,000 - the highest figure in a decade.
In response, Work and Pensions Secretary Pat McFadden has appointed former Blair-era health secretary Alan Milburn to lead an independent review into rising youth worklessness. The government is expected to announce funding for a "youth guarantee" in the upcoming budget, offering paid work to every eligible young person who has been on Universal Credit for 18 months without earning or learning.
Ben Harrison of the Work Foundation thinktank emphasized the urgency: "If you want to see a tangible difference made in time for the next election, more investment and support is needed."
With ministers bracing for Thursday's update that could show young people not in education, employment or training (Neet) exceeding 1 million for the first time in a decade, the pressure is mounting for concrete solutions to Britain's deepening youth employment crisis.
