Youth unemployment in the UK has reached its highest level since the COVID-19 pandemic, with 16 to 24-year-olds facing a daunting job market. The staggering rate of 15.3% – the highest in a decade – is a harsh reality for young people seeking employment.
The economic climate cannot be ignored as a major contributor to this trend. A sluggish UK economy, marked by sticky inflation, elevated borrowing costs, and subdued consumer demand, has made it increasingly difficult for businesses to invest and hire new staff. Sanjay Raja, chief economist at Deutsche Bank, aptly put it: "The higher up you go, the bigger the opportunity cost to replace workers who firms have put more investment and training into."
Additionally, tax increases – particularly the chancellor's £25 billion rise in employer national insurance contributions (NICs) – have added fuel to the fire. This hike has disproportionately affected young people, especially those in part-time work, such as in retail and hospitality sectors. The reduced earnings threshold for NICs has resulted in increased costs for employers, leading them to become more cautious with hiring decisions.
The impact of artificial intelligence (AI) on entry-level jobs cannot be overstated. Businesses have been rapidly investing in new technologies to automate simple human tasks, leaving young people at a disadvantage. Raja explained: "You're in the perfect space where doing menial tasks – spreadsheets, etc – is being disrupted." Sectors such as retail, hospitality, and healthcare are particularly affected by AI-driven automation.
The COVID-19 pandemic has left its lasting scars on younger generations, exacerbating mental health issues and disabilities. The disruption to education during lockdowns and the resulting transition into the workforce have made it increasingly challenging for young people to find employment. Ben Harrison from the Work Foundation thinktank noted: "All of those factors taken together, it's not necessarily too surprising you've seen this rise in mental health issues since the mid 2010s."
The perfect storm of economic weakness, tax increases, AI-driven automation, and the ongoing impacts of the pandemic have created a bleak job market for young people. As Harrison aptly put it: "Young people have grown up as public services have crumbled, living costs have increased, and average wage growth has flatlined. This has acted as a barrier to getting on and a disincentive to work."
The economic climate cannot be ignored as a major contributor to this trend. A sluggish UK economy, marked by sticky inflation, elevated borrowing costs, and subdued consumer demand, has made it increasingly difficult for businesses to invest and hire new staff. Sanjay Raja, chief economist at Deutsche Bank, aptly put it: "The higher up you go, the bigger the opportunity cost to replace workers who firms have put more investment and training into."
Additionally, tax increases – particularly the chancellor's £25 billion rise in employer national insurance contributions (NICs) – have added fuel to the fire. This hike has disproportionately affected young people, especially those in part-time work, such as in retail and hospitality sectors. The reduced earnings threshold for NICs has resulted in increased costs for employers, leading them to become more cautious with hiring decisions.
The impact of artificial intelligence (AI) on entry-level jobs cannot be overstated. Businesses have been rapidly investing in new technologies to automate simple human tasks, leaving young people at a disadvantage. Raja explained: "You're in the perfect space where doing menial tasks – spreadsheets, etc – is being disrupted." Sectors such as retail, hospitality, and healthcare are particularly affected by AI-driven automation.
The COVID-19 pandemic has left its lasting scars on younger generations, exacerbating mental health issues and disabilities. The disruption to education during lockdowns and the resulting transition into the workforce have made it increasingly challenging for young people to find employment. Ben Harrison from the Work Foundation thinktank noted: "All of those factors taken together, it's not necessarily too surprising you've seen this rise in mental health issues since the mid 2010s."
The perfect storm of economic weakness, tax increases, AI-driven automation, and the ongoing impacts of the pandemic have created a bleak job market for young people. As Harrison aptly put it: "Young people have grown up as public services have crumbled, living costs have increased, and average wage growth has flatlined. This has acted as a barrier to getting on and a disincentive to work."
I feel so bad for all these young ppl out there struggling 2 find a job 
. It's like, the economy is all messed up & tax increases r really hurting them 
. And AI taking over their jobs just breaks my heart 
. Can't we do something about it? Like, invest in education & training programs that focus on skills that'll be needed in the future? 
. Young people are already struggling with mental health issues and pandemic stuff, so it's not like they're getting a fair shot at finding employment. We need to support them more than ever 
.
16-24 year olds in the UK are really struggling to find jobs 
it's all because of this slow economy 
that chancellor did 
& AI is making a lot of entry level jobs disappear 
. We need to do something to help our young people get back on track 
. Maybe it's time for a new approach to education and job training? Something that prepares them for the future, not just the past? 
. It's like the whole system is stacked against them, ya know? The economy's all over the place 
and AI's just making it harder for 'em to compete 
. And don't even get me started on the tax hike 
. We can't just leave 'em high and dry when they're trying to navigate this crazy job market 
. Gotta be more proactive, you know? 
.
and it's all because of the government's tax hikes 
.
. The government should be doing more to support these young people, but instead they're just piling on more tax increases 
. This is not okay, and we need to make some real changes 
.
I can totally feel how scary that must be for all those young folks out there trying to find their footing in the job market. It's like, one thing after another is piling up against them - economic uncertainty, increased taxes, automation... it's like, they're already struggling to cope with everything that happened during the pandemic, and now this? 
I mean, 15.3% youth unemployment in the UK? That's like trying to find a needle in a huge pile of... well, you know what 
. But seriously, it's a bit of a mess for our young folks. The economy's all slow and sticky, inflation's high, and tax increases are sucking the life outta their jobs 
Not me, that's for sure! But on a more serious note, it's not all doom and gloom... we just need some creative solutions to boost the economy and give young people a chance to shine 
young people in the UK are literally facing a harsh reality with no clear escape route from this toxic job market. i feel for them, it's like they're stuck in the matrix of economic woes and AI-driven automation 
.
.
. and honestly, it's not too surprising to see a rise in mental health issues among young people. they've been living through some tough times, you know?