One in six young people will not be in education, employment or training within five years unless “urgent” action is taken, a major review by former minister Alan Milburn has warned.
He said the education, health and welfare systems were “no longer fit for purpose” in preparing young people for adult life, with the number of 16 to 24-year-olds out of work, education or training set to rise to 1.25 million by 2031.
He said the “first rung” on the career ladder was “more out of reach” for the current generation of young people, with many young people applying for “sometimes hundreds” of job applications but not hearing back.
Latest figures show the unemployment rate for 16 to 24-year-olds is 16.2%, the highest since 2014, and more than three times the broader unemployment rate of 5%. 
Shevaun Haviland (pictured), Director General of the British Chambers of Commerce, said: “The Milburn report must be a wakeup call for policymakers about the crisis of young people not in employment, education and training.
“Unless urgent comprehensive action is taken a whole generation is at risk of being cut loose from society, and economic growth will be hampered.
“Today’s report accurately diagnoses the problem, with suggested solutions to come later in the year. The issues identified in the Milburn Review have long been reported by businesses. It is important that government urgently takes steps to address these.
“BCC research shows that more than half of businesses are facing skills shortages, but high employment costs are causing many to cut back on recruitment and training.
“Both young people and employers often see risk as a barrier to taking a chance on a job or on someone with less experience. We welcome the Jobs Guarantee which will reduce this fear factor on both sides.
“Now, Government needs to take even bolder action to tackle those at risk before they become NEET. That means earlier and better careers education; more training routes at Level 2; and reducing costs for employers.
“Businesses are keen to engage with the Milburn Review and with Government in the coming months as solutions to these critical issues are developed. For example, Chambers are already bringing businesses to the table through Local Skills Improvement Plans, to match up training with the real jobs available to young people. The LSIP structure can be a ready-made part of the solution to these problems.
“It is welcome to see the Milburn Review recognise the “overwhelming desire” of most businesses to employ young people from their local area.
“Without strong business input, the government risks settling on interventions that fail to tackle the NEETs crisis in a meaningful way.
“An ambitious approach is needed between health, education, the welfare system, and employers. Solutions need to be locally rooted but nationally joined up.”
Join Somerset Chamber of Commerce to give your business a stronger voice both locally, regionally and nationally. Combined with local town chambers, we represent over 2,000 businesses across Somerset with a direct line to policy-makers at all levels.
