Young People and Work Report: Call for evidence
We welcome the opportunity to submit to this call for evidence and the government’s commitment to tackle the growing number of young people who are NEET.
The youth NEET crisis has been years in the making and is now being exacerbated by slow economic growth. Turning round the drivers will take time, but we need urgent action now - for the generation who have already been let down and the children who are already coming next.
Our submission shows that rising rates are a result of structural failures in the labour market – including persistent regional economic inequalities – and cuts to education, health and social security systems. Young people want to work – but they have been let down by past government failures. Today’s NEET young people face a combination of weak labour market demand, poor quality jobs, disrupted education pathways, including a lack of apprenticeship opportunities and inadequate public services such as mental health and youth services – undermined by over a decade of sustained underinvestment.
We need both immediate support for the pandemic generation, and a comprehensive cross-government plan to turn around wider drivers of the NEET crisis. A successful response must focus on creating quality, paid work and apprenticeship opportunities, alongside sustained investment in skills, education, health and social security.
What is stopping more young people from participating in employment, education or training?
Weak labour demand for entry level work. Vacancies have fallen sharply, particularly in roles suitable for young people, while unemployment has risen faster for 18–24-year-olds than for older workers. Young people are being increasingly displaced by more experienced workers in a tightening labour market. More quality jobs for young people, particularly in regions with high NEET rates are needed.
Regional and local labour market inequalities. The UK labour market remains characterised by significant regional and local labour market inequalities. Young people living in areas of high deprivation and lower employment rates are far more likely than others to be NEET.
Poor quality and insecure work. Young people are disproportionately concentrated in low paid, insecure work. Our analysis demonstrates that sectors where young people are overwhelming represented have the highest flows into economic inactivity. These sectors are often those associated with lower pay and job insecurity, which are both contributing factors to economic inactivity and the growth in poor mental health.
Disruption to education and skills pathways. Disruption to education and employment during the pandemic has meant many young people feel less job ready. In addition, there has been a significant decline in apprenticeship start and completion rates. Those who drop out of apprenticeships often cite poor quality training or financial pressures. Not having Level 2 qualifications is a common risk factor amongst NEET young people and therefore improving access to skills is vital. This is compounded by a one-size-fits all approach to curriculum, assessment and qualifications that must be addressed so that systems better support and recognise educational progress for all learners.
Rising ill health. A growing share of NEET young people are disabled, and this has been attributed to a growth in mental ill-health. Cuts to mental health and youth services and the detrimental impact of insecure work and the cost of living have been found to be some of the primary drivers of this, rather than suggestions of lower levels of resilience amongst young people. In addition, TUC research shows that too many disabled people do not get access to reasonable adjustments to help them stay in employment.
Inequalities and discrimination. Disabled young people, young carers, and some ethnic minority groups are more likely to be NEET. Discrimination, inaccessible transport, lack of flexible working and harassment in the workplace are all barriers to accessing quality work for young people with protected characteristics.
Finally, our view is that the minimum wage has a vital role in supporting the living standards of young workers and is not a significant determinant of employment outcomes as young people navigate the transition through education, training and the labour market, despite suggestions claiming so. There is also no evidence that claiming social security is driving NEET rates.
What would make the biggest difference to support more young people to participate?
Given the scale and nature of the problem, we welcome the announcements the government has made to tackle this issue in the Youth Guarantee and in apprenticeship reform. We urge them to be bold in their efforts to ensure young people’s futures and in turn drive economic growth.
The TUC recommends the government:
expands the jobs guarantee for young people. Evidence from the Future Jobs Fund shows that real experience of decent, paid work is the best way to turn the tide on rising rates of worklessness. We believe places need to be expanded beyond 55,000 and paid opportunities should be prioritised over unpaid work experience placements. There should also be selection criteria measures to ensure employers are providing quality experiences. Whilst job guarantee schemes need initial upfront investment, they result in a return on investment for the government. Overall, given the number of NEET young people not on Universal Credit, eligibility for both work experience and jobs guarantee placements should be expanded.
ensures young people’s opportunities are a cross-government priority, with policy levers across government focused on young people’s job creation. The government’s industrial strategy, the new infrastructure pipeline and wider ongoing government procurement all provide opportunities to place a strategic priority on training and employment opportunities for young people. Government should use both its convening and spending power to ensure that a national priority is given to creating opportunities for young people in the regions and local areas with the highest NEET rates.
ensures quality experiences of work. Given the evidence that poor quality jobs can drive economic inactivity, the government should ensure full and rapid implementation of the Employment Rights Act and the government’s Make Work Pay agenda, in particular measures that will support job security. In addition, it should introduce legislative changes to improve the accessibility of work including improving access to reasonable adjustments, improving Access to Work and ensuring sufficient funding for the Equality and Human Rights Commission and Health and Safety Executive.
reforms apprenticeships. Reversing the decline in apprenticeship opportunities for young people requires improving quality, expanding provision and ensuring apprentices are financially supported to complete their training. The industrial strategy provides an opportunity to create sustainable, quality apprenticeships. Funding for infrastructure projects should come with requirements for apprenticeship delivery; a certain percentage of apprenticeships should be ringfenced for 18–24-year-olds and apprenticeships should also be targeted at people without a Level 2 qualification.
reforms funding for education. Both further and higher education are facing a financial crisis which is jeopardising the ability to deliver apprenticeships and upskill the workforce. The government must work with unions on a sustainable tertiary education workforce strategy, take steps to stabilise higher education through intervention and funding reform and address the systemic pressures affecting colleges and universities so they have the capacity needed to deliver apprenticeships and wider learning opportunities.
Sustained investment in schools, including SEND support and action to address recruitment and retention, is also needed to ensure inclusive schooling, stronger wellbeing services, and wider vocational options to keep young people engaged. Finally, we welcome the reforms to careers education announced by the government and urge them to implement the three key recommendations of the Labour Skills Advisory Council on the National Careers Service outlined in our response below. Reinstating Educational Maintenance Allowance in England will also improve attendance rates for learners aged 16-19. Alongside this, it is important to retain choice and fairness for learners by avoiding premature defunding of trusted and high-quality courses, particularly applied general and vocational qualifications.
reforms funding for health. Given the high rates of young disabled people who are NEET, fully-funded comprehensive rehabilitative services as part of NHS care – encompassing mental health, physiotherapy, orthopaedic and occupational therapy – is a fundamental step in supporting young disabled workers and individuals with ill health to return to and stay in employment. The government should work with NHS unions to deliver this.
ensures quality work experience. Left unchecked, the work experience element of youth unemployment policies could result in the exploitation of young people and job replacement. High quality work experience should be time limited, include a substantial element of structured learning and have trade union involvement to ensure that young people are not exploited and do not end up undertaking work for free. The government should ensure financial support to cover travel and other costs. Given high rates of sexual harassment amongst young women, particularly in sectors selected for the Youth Guarantee, the government should ensure that participating employers are meeting requirements under equality legislation including the Worker Protection Act.
ensures a supportive social security system. Cutting benefits for a small number of high needs young people is not the answer to the complex, structural and long-run challenges of rising NEET rates. The Youth Guarantee should not be funded by removing benefits for young people, and the policy of cutting access to the health element for young people should not proceed.
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