At the end of June we ran our third workshop on local economic recovery from the pandemic, on behalf of CLGU.
The topic was youth unemployment and scarring (the long term impacts of unemployment). In our recent rapid evidence review on the topic, we said:
The evidence from previous recessions is that unemployment tends to rise more sharply for young people. Periods of unemployment when young, especially during recessions, can have long-lasting impacts on young people’s future labour market outcomes and on wider issues such as quality of life.
Sadly, this evidence is borne out by the data since the pandemic started. Naomi Clayton of the Learning and Work Institute presented sobering figures showing that young people are over-represented in the industries which have taken the hardest hit – hospitality and retail. Given this, it’s perhaps no surprise that while young people account for 12% of the employment in the UK, they represent 60% of those who have lost their jobs during the crisis. The number of people aged 18 – 24 claiming unemployment has doubled since March 2020.
Naomi had a number of suggestions from a policy point of view: that time on furlough be counted towards Kickstart eligibility; that a ‘Youth Guarantee’ be introduced to ensure that NEETs can access a job, apprenticeship, training, or educational place; and that local authorities play a leadership role in coordinating the support offer and helping young people find it and take it up – especially the hardest to reach groups.