Keir Starmer has been cautioned that nearly half of the jobs lost since Labour came to power are held by individuals under 25, raising concerns about a potential “lost generation.” Recent analysis by the Guardian indicates that the rise in UK unemployment, reaching levels not seen since the Covid pandemic, is significantly impacting youth employment.
Since June of last year, 46% of the 170,000 positions eliminated from payrolls have been among young people, averaging over 150 job losses per day. David Blunkett, former Labour education secretary, highlighted the risk of failing to support this demographic, suggesting a renewed version of the “New Deal” from the 1990s could be a necessary response. He noted that modern challenges would require adaptation of previous strategies.
Youth unemployment has increased from 14.8% to 15.3%, marking the highest level since 2015 outside the pandemic, and is more than triple the jobless rate for those over 16. Long-term youth joblessness has also reached a decade high, with data showing 77,000 fewer individuals under 25 employed since June 2024, primarily due to declines among those under 18.
Despite a modest recovery in November, the net number of young workers remains below last year’s figures. Critics of Labour’s policies argue that recent increases in national insurance contributions have hindered hiring, particularly in sectors like hospitality and retail that typically employ young workers. Both the shadow chancellor and the Liberal Democrat Treasury spokesperson have called for reversing these tax increases to address the youth jobs crisis.
The government is expected to address concerns over young people not engaged in education, employment, or training (NEET), with reports indicating numbers may surpass 1 million. In response to rising youth worklessness, work and pensions secretary Pat McFadden has initiated an independent review led by Alan Milburn.
Chancellor Rachel Reeves plans to introduce a “youth guarantee” in the upcoming budget, aiming to provide paid work for eligible young people on universal credit for an extended period. Nevertheless, the number of 18- to 24-year-olds unemployed for over a year has reached 137,000, highlighting ongoing challenges in youth employment.
Source: https://www.theguardian.com/business/2025/nov/15/half-of-all-uk-jobs-shed-since-labour-came-to-power-are-among-under-25s