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Chancellor of the Exchequer needs to do more to tackle youth unemployment in Pre-Budget Report

Tuesday, 01 December 2009

Christian Zarro

The Work Foundation is calling on the Chancellor of the Exchequer to take stronger action against youth unemployment in The Road to Recovery: Getting Britain back to Work, a detailed account of what the Pre-Budget Report should address. With young people (18-24 year-olds) being the hardest hit by this recession, the fight against youth unemployment needs to be a top priority in Alistair Darling’s Pre-Budget Report claims the paper, published today (30 November).

David Coats, report author and Associate Director (Policy) at The Work Foundation sets the global context, provides an overview of the UK labour market then outlines the specific policy priorities: to minimise the inflow of new claimants onto the unemployment register and to prevent the scarring effects of youth unemployment.

He makes a compelling case for a one-off higher education expansion in 2010 so that all suitably qualified applicants are guaranteed a place. He also urges the government to adapt the job guarantee scheme to help young people increase their job prospects at the end of the programme.

Specific policy proposals to the job guarantee scheme include:

  • More intensive job search support for those most likely to find jobs
  • A strong skills development element in the job guarantee programme itself and full integration with other employment programmes
  • Continued job search support during the job guarantee perio

  •  A link to a real job at the end of the job guarantee programme

In addition, the report urges the introduction of a short-time working scheme similar to the arrangements in Germany that have helped to keep unemployment low, along with an immediate increase in the Job Seekers Allowance of £10 per week.

David Coats said, "It is vital that the government reinforces its commitment to helping young people in these tough times. Youth unemployment is at a record high and there is no excuse for inaction.

"Revising the Job Guarantee will improve the effectiveness of the programme, focus resources on the young people most in need of support and encourage employers to become active partners in the initiative. In addition, the temporary expansion of higher education will reduce the inflow of new entrants into a labour market that is still weak.

 "Both the development of the Job Guarantee and the expansion of higher education are essential practical measures that will keep the most vulnerable young people in touch with the world of work and ensure that the UK has the highly qualified workforce we need to respond to the opportunities of economic recovery."

 Ends

Notes to editors  

  1. David Coats is available for interviews and briefings. 
  2. The paper on the Pre-Budget Report, The Road to Recovery: Getting Britain back to Work is available at www.theworkfoundation.com
  3. The Work Foundation is the leading independent authority on work and its future. It aims to improve the quality of working life and the effectiveness of organisations by equipping leaders, policymakers and opinion-formers with evidence, advice, new thinking and networks.

Media enquiries: Christine George or Christian Zarro 020 7976 3507 / 07825 527 036 cgeorge@theworkfoundation.com