Youth Unemployment in the UK Nears 18% Amid Economic Challenges
Labour under fire as youth unemployment heads towards 18 per cent
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Youth unemployment in the UK is projected to rise to 17.9% by spring 2024, marking the highest level since 2014. The British Chambers of Commerce warns this could result in over 800,000 young people out of work, urging the government to cut taxes on jobs to combat the crisis.
- 01Youth unemployment is expected to increase from 16.2% to 17.9% by spring 2024, adding 79,000 more jobless young people.
- 02The overall unemployment rate is predicted to reach 5.5%, the highest in 12 years, as economic growth slows to just 0.9% this year.
- 03The rise in national insurance contributions and minimum wage hikes for younger workers are seen as factors pricing youth out of jobs.
- 04The British Chambers of Commerce calls for urgent reforms, including better careers education and reducing employer costs.
- 05Hospitality sector leaders highlight that the increased cost of entry-level roles due to tax hikes is detrimental to job creation.
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The British Chambers of Commerce (BCC) has issued a stark warning regarding youth unemployment in the UK, projecting it could rise to 17.9% by spring 2024, the highest rate since early 2014. This increase would add approximately 79,000 young people to the ranks of the unemployed, bringing the total to over 800,000. The BCC attributes this surge to a combination of higher taxes on businesses, including an increase in national insurance contributions, and inflation-driven hikes in minimum wage for younger workers, which they argue have made it more difficult for young people to secure employment. The overall unemployment rate is also expected to climb to 5.5%, marking a 12-year high. Business leaders, particularly in the hospitality sector, are urging the government to reverse the national insurance hike to foster job creation and are advocating for better career support and training for young individuals. The BCC emphasizes the need for urgent action to stabilize the economy and support youth employment, warning that failure to do so could lead to a 'lost generation' of jobless youth.
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The rise in youth unemployment could lead to increased economic strain, particularly in sectors that traditionally employ young people, such as hospitality.
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