Nearly half (49%) of the public believe younger unemployed people need more support from Government to get a job, according to new polling by Opinium and the British Retail Consortium (BRC). This comes at a time when official figures show youth unemployment has climbed to 16%, with 713,000 people aged 16-24 out of work.
When asked which groups needed more support from the UK Government to get jobs, younger unemployed people topped the list, followed by those with disabilities (41%), working age unemployed (36%), and those out of work for longer than 12 months (35%).
Employment costs have been rising fast, making it harder for businesses to offer entry-level roles and pushing youth unemployment steadily higher. In the last two years businesses have faced two rises to the National Living Wage, a rise in the employer National Insurance Contributions (NIC) tax rate, and a drop in the employer NIC threshold for payment. This has pushed up the costs of employment for retailers by well over £6bn in just two years.
Concern about youth unemployment was highest in Wales, where 63% of respondents said there should be more support for younger unemployed. This comes just before Welsh voters go to the polls to elect a new parliament.
A second question asked whether people agreed or disagreed that government should “reduce the cost and requirements for employers when hiring people under 25”. This showed 53% agreeing, and only 7% disagreeing (see full polling results in notes).
While initiatives like the Youth Guarantee are a step forward, it is unlikely to meet the scale of the challenge. Retail is ready to step up to support young people across the country. The industry is one of the country’s biggest gateways into work, employing around 2.8m people, including 780,000 16-25-year-olds who account for 28% of its workforce.
Both the BRC and the public believe that more must be done to support young people into work and avoid unemployment rising even higher. Essential to this is government playing its part in reducing the costs of employment for businesses. This includes expanding youth employment schemes and ensuring the implementation of the Employment Rights Act strikes the right balance in ensuring it gives workers meaningful protection without adding unnecessary cost and complexity to hiring.
Going forward, policymakers must work closely with large employing sectors like retail to ensure reforms reflect real-world conditions and do not unintentionally shut young people out of jobs. The more the Act raises the cost of employment, the more young people will pay the price.
Helen Dickinson, Chief Executive of British Retail Consortium, said:
“Opportunities for young people are disappearing in front of our eyes. The reasons are clear: hiring is more expensive and businesses costs are soaring. The public want decisive action by government to get people - particularly young people - back into work. This is critical for their future, and the future of our economy. Instead we see government pushing up the cost of hiring, from last year's National Insurance hike to poor implementation of parts of the Employment Rights Act. We are sleepwalking towards a jobless generation unless government halts the upwards spiral of employment costs and red tape."
