Half of all UK jobs shed since Labour came to power are among under-25s | UK unemployment and employment statistics

Keir Starmer has been warned that Britain’s youth are at risk of changing into a “misplaced era” on his watch because it emerged nearly half of all jobs shed since Labour got here to energy are among the many under-25s.With the federal government below hearth earlier than the autumn price range, Guardian evaluation reveals the dramatic leap in UK unemployment to the best ranges because the Covid pandemic is being fuelled by a youth jobs disaster.As many as 46% of the 170,000 jobs misplaced from firm payrolls since June final 12 months are from these below the age of 25 – the equal of greater than 150 jobs misplaced per day.David Blunkett, the previous Labour schooling secretary, mentioned that whereas the federal government was taking motion there was a hazard a whole era of younger folks can be let down.“I believe we’ve acquired to get our act collectively. It’s a misplaced era and if we don’t do one thing now the implications economically, societally and personally can be devastating,” he mentioned.Blunkett, a number one determine in Tony Blair’s New Labour authorities, urged Starmer to think about launching a revamped model of the Nineties New Deal for younger folks launched early in Blair’s first time period in workplace.“If we may return and be taught from it, and apply it to the fashionable period – the place clearly there’s an excellent deal extra problem – that might be good.”Youth unemployment has elevated from 14.8% a 12 months in the past to fifteen.3%, the best degree exterior the Covid pandemic since 2015, and greater than thrice the headline jobless fee for folks over the age of 16. Lengthy-term youth joblessness can be at a decade excessive.Whereas under-25s account for roughly a tenth of the general UK workforce, the Guardian’s evaluation of HMRC jobs knowledge revealed this week reveals youthful adults have borne the brunt of job losses up to now 12 months.The figures launched by the Workplace for Nationwide Statistics present the variety of staff below the age of 25 on firm payrolls in November was down by 77,000 from the extent in June 2024, earlier than Starmer’s election landslide. Many of the decline was fuelled by a drop in staff below the age of 18.The most recent month-to-month figures present a restoration in November from October of about 37,000 under-25s on firm payrolls, however the complete in work remains to be down from June final 12 months.Labour has been blamed for fuelling Britain’s jobs market slowdown after the chancellor, Rachel Reeves, focused employers with a £25bn improve of their nationwide insurance coverage contributions in final 12 months’s price range.Seized on by the federal government’s critics, the Financial institution of England has warned the tax improve has sapped hiring largely amongst employers in hospitality and retail – sometimes the place younger folks discover a first step into the world of labor.“Any misplaced era is on the chancellor,” mentioned Mel Stride, the shadow chancellor. “You don’t get extra younger folks into work by punishing the very companies that rent them.”Daisy Cooper, the Liberal Democrat Treasury spokesperson, referred to as on Reeves to reverse the tax rise on the 26 November price range. “The youth jobs disaster is a ticking timebomb however some apparent options are staring the chancellor within the face,” she mentioned.It comes as ministers brace for an replace on Thursday, which dangers exhibiting the variety of younger people who find themselves not in schooling, employment or coaching (Neet) has climbed above 1 million for the primary time in a decade.Amid mounting concern on the coronary heart of presidency, Pat McFadden, the work and pensions secretary, this week appointed Alan Milburn, the previous Blair-era well being secretary, to steer an unbiased overview into rising youth worklessness.Reeves is predicted to announce funding on this month’s price range for a “youth assure” to supply assured paid work to each eligible younger one who has been on common credit score for 18 months with out incomes or studying.The chancellor pledged in her occasion convention speech in Liverpool earlier this autumn that Labour would goal for “the abolition of long-term youth unemployment”. Nevertheless, official figures this week present the variety of 18- to 24-year-olds who’ve been unemployed for longer than 12 months has surged to 137,000, the best degree in a decade.Ben Harrison, the director of the Work Basis thinktank, mentioned the federal government wanted to broaden its plan to assist extra younger adults between the ages of 18 and 24.“If you wish to see a tangible distinction made in time for the subsequent election, extra funding and assist is required,” he mentioned.A authorities spokesperson mentioned Milburn’s overview would assist to deal with the important thing limitations behind rising youth unemployment. “It’s unacceptable that 1 million younger persons are not in schooling, employment or coaching,” the spokesperson mentioned.“We’re delivering alternatives to younger folks throughout the nation, from the enlargement of Youth Hubs to our Youth Assure to make sure the prospect to earn or be taught is out there to all.”