Youth unemployment could top 1 million by the end of the year, a new report warns - highlighting the scale of the jobs crisis facing an entire generation of young people.
The Institute for Public Policy Research think tank estimated that an extra 620,000 people aged between 18 and 24 will be jobless by the end of the year, on top of the 410,000 already unemployed.
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This will be the highest number of young people unemployed on record, surpassing the levels seen in the 2008-09 and 1990s’ recessions, says the report.
This level of youth unemployment should be a major cause for concern, according to the IPPR, as being out of work at an early age can cause serious “scarring effects” on people’s life chances, including lower wages, increased risk of further unemployment and worse health into later life.
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A £3 billion government intervention is needed to ensure that everyone under the age of 25 is in education, training, apprenticeship or a job, according to the report.
Harry Quilter-Pinner, IPPR senior research fellow, said: “We face an unemployment crisis in the UK. Our analysis suggests youth unemployment could more than double by the end of the year. This would be a huge waste of talent and potential. It doesn’t have to be like this.
“That’s why we are calling on the government to step in to guarantee all young people either a funded place in education, an apprenticeship or a job.
“This will require the state to support businesses to take on young people, just as it has supported them to retain adults through the furlough scheme.”
A report published by the Learning and Work Institute and think tank Reform today said the government had to invest £3.2 billion to mitigate against the looming unemployment crisis.
Yesterday, City and Guilds urged the government to release and redirect the £3 billion National Skills Fund to support and retrain those who have lost their jobs as a result of Covid-19.
A new report by the training organisation showed that more than half (59 per cent) of those currently out of work felt they could not afford to pay for training.
