Since the pandemic, youth unemployment levels have been on the rise. Official figures from the House of Commons show that the unemployment rate for 1624-year-olds has risen from 13% in 2023 to 14.2% in 2024. The Secretary of State for Work and Pensions, Liz Kendall, warned of the long-term cost to the taxpayer and the State if these numbers do not lessen.
She views this as a critical issue that requires immediate attention. There is also a risk of becoming long-term unemployed for the 1 in 8 young people who are not in education, employment or training. According to the Resolution Foundation, a big part of the cause is poor mental health in young people, with signs starting before 14 years old.
Risks to the taxpayers’ money are a major concern during this time. Indeed, overall unemployment due to poor health is now costing an extra £16 billion a year since the pandemic. Despite 2024 Tory claims of being less lenient with benefits, “over the next five years there will be 600,000 more people on incapacity and disability benefits, and these benefits will cost an extra £33 billion”, according to Liz Kendall.
The stagnant living standards under the Tory government will only be pursued if not addressed. However, Kendall gave details on the government’s idea to implement a plan to help youth employment and access to education. Her goal “is every young person earning or learning, with help to build their skills and careers, and to manage and improve their health”.
The proposal for a new “youth guarantee” comes in response to the concerning statistics, including a doubling of unemployment due to ill health among young people over the past decade. The plan will empower local areas to deal with economic inactivity while also being supported by the Government. She states cities are best informed about their specific needs and should lead this struggle from each local root.
The Secretary of State says the key to battling youth unemployment and low skills is to support the education system. Labour will provide mental health specialists and career advisers in schools.