Youth Unemployment & the Skills Gap
ONS, Young People not in Education, Employment or Training (May 2018)¹:
ONS, Labour Market Statistics (July 2018)²:
- Unemployment for 16-24: 12% (down from 12.5% a year ago)
- Unemployment for aged 16 and over: 4.2% (down from 4.5% a year ago)
Also see ONS report Analysis of the UK labour market – estimates of skills mismatch using measures of over and under education (release date: 17 March 2016)
British Chambers of Commerce, Business and Education Survey³:
- Two-thirds of businesses (69%) believe that secondary schools are not effective at preparing young people for work
- Top five entry level skills that firms value most are communication (88%), literacy (69%), numeracy (64%), computer literacy (56%) and teamwork (53%
- Firms think careers advice should include workplace experiences (64%), encounters with employers and employees (62%), and link curriculum learning to careers (45%)
CBI/Pearson Education, Education and Skills survey 2016: The Right Combination⁴
- By far the most important factor employers weigh up when recruiting school and college leavers is their attitude to work (89%) followed by their aptitude for work (66%); these rank well ahead of formal qualifications (23%)
- Around half of businesses are not satisfied with school leavers’ work experience (56%) and their skills in communication (50%), analysis (50%) and self-management (48%)
- For the 14-19 age group, employers believe a top priority for schools and colleges should be developing awareness of working life with support from businesses (42%) as well as improving the quality of careers advice (42%)
World Economic Forum, Future of Jobs Report⁵
- 36% of jobs in the future will require complex problems solving as part of their core skill compared to 4% of jobs that will require physical strength or dexterity
- social skills (e.g. persuasion, emotional intelligence and teaching others) will be in higher demand across industries than narrow technical skills, such as programming or equipment operation
Princes Trust, Youth Index 2018 ⁶
- 59% of young people feel they need to develop new skills before they can consider career options
- 25% of young people feel trapped in their jobs
- 29% of young people feel a lack of work experience is one of the biggest challenges in pursuing a career
- 42% of young people feel traditional goals e.g. owning a house or getting a steady job, are unrealistic
Eurostat, Unemployment rate of 15-24 year olds (%) ⁷
- For the latest quarter (2015 Q3) 15.2% of 15-24 year olds in the UK were unemployed. This compares to over 45% unemployment of the same age group in Greece, Spain and Republic of Macedonia and under 10% in Iceland and Germany
Other useful links:
- Graduate Labour Market Statistics 2016
- The Human Capital Report 2017
- The Skills Dilemma: The Work Foundation
- Beyond the business case: The Work Foundation
- OECD: Building Skills for All: A Review of England
- The Work Foundation: Underemployment vs Unemployment
¹ ONS, Young People not in Education, Employment or Training (May 2018), release date: 23 May 2018. Estimates of young people who are NEET (not in education, employment or training) broken down by age, sex and by labour market status.
² ONS, Labour Market Statistics (July 2018), release date: 17 July 2018. Estimates of labour market statistics (including employment, unemployment and economic inactivity) for UK
³ British Chambers of Commerce, Business and Education Survey, release date: 11 Nov 2015. A survey of businesses and educational institutions across the UK to learn what could be done to bridge the gap between education and business.
⁴ CBI/Pearson Education,Education and Skills survey 2016: The Right Combination, release date: July 2016. A guide to trends in business opinion and practice across education and skills issues.
⁵ World Economic Forum, Future of Jobs Report, release date: January 2018. The Future of Jobs Report provides specific information on the relative magnitude of technological trends by industry and geography, and on the expected time horizon for their impact to be felt on job functions, employment levels and skills
⁶ Prince’s Trust , Youth Index 2018, release date: January 2018.This is the ninth annual Prince’s Trust Youth Index. It takes an in-depth look into the views and outlooks of young people aged 16 to 25. The Index gauges’ young people’s feelings about their lives today and their feelings about the future.
⁷ Eurostat, Unemployment rate of 15-24 year olds (%), release date: 2016. Eurostat provide high quality statistics on Europe. We used the data on their site to create this infographic which shows unemployment rates by sex, age and citizenship.