The number of young people neither working nor learning has surged past one million for the first time since 2013, as retail bosses warn that government taxes and red tape are “pricing out” firms from hiring entry-level staff.
Official figures from the Office for National Statistics show that 1.01 million 16- to 24-year-olds were not in employment, education or training – known as Neets – in the three months from January to March. Alan Milburn, who is leading the government’s review of the crisis, has warned that the figure could surpass 1.25 million within five years.
“Retail bosses warn government policies are pricing out firms from hiring young workers as Neet numbers top 1 million”
In a letter coordinated by the British Retail Consortium, the bosses of more than 80 high street giants – including Tesco, Sainsbury’s, John Lewis, Amazon, M&S and Greggs – told the Prime Minister that policies are “making it harder to hire young people”. They called on policymakers to revisit national insurance contributions, changes to the national living wage and employment rights in order to support the creation of entry-level jobs.
Helen Dickinson, chief executive of the BRC, said: “The message from retail is clear: if Government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs.” She added that retail and its supply chain account for almost a quarter of all youth employment, but “this first step on the ladder is cracking under the weight of Government-imposed costs and regulations”.
The warning comes a fortnight after the Neet figures were released and days after the government drafted former Marks & Spencer chief executive Marc Bolland to help get more young people into work.
A Government spokesman responded: “We are already working in partnership with businesses to tackle youth unemployment and create 50,000 more opportunities for young people as part of our £2.5 billion youth employment support package. From this month, we’re rolling out £3,000 payments, covering wages for six months for those out of work long-term, and cutting hiring costs for under‑21s and apprentices. We will continue working with businesses to address the challenges set out in the Milburn report and help more young people take their first step into work.”