Government Takes Action Against Youth Unemployment

The UK government has appointed Marc Bolland, former CEO of Marks & Spencer, as a jobs adviser to address the escalating youth unemployment crisis. Bolland, who led M&S from 2010 to 2016, will spearhead a summit of business leaders to create clear pathways into employment for young people.

Bolland's appointment comes in response to a warning from former health secretary Alan Milburn about the risk of a 'lost generation' if urgent action is not taken. Currently, about 1 million people aged 16 to 24 in the UK are not in education, employment, or training. This figure could rise to 1.25 million by the 2030s without significant intervention.

Why It Matters

The youth unemployment crisis has far-reaching consequences for both individuals and the economy. The economic cost of this crisis is estimated to be around £125 billion. Moreover, the proportion of young people not in education or work in the UK is significantly higher than in many other developed countries, such as the Netherlands.

Addressing this issue is crucial for the future workforce and the overall economic health of the country. The government's collaboration with Movement to Work, a charity Bolland is involved with, has already helped over 200,000 unemployed young people find jobs. This initiative demonstrates the potential impact of public-private partnerships in tackling unemployment.

Background and Public Impact

Youth unemployment has been a persistent challenge in the UK. The proportion of young people who have never had a job has increased from four in ten in 2005 to six in ten today. This trend is alarming and highlights the need for effective interventions.

The public impact of this crisis is profound. Young people, particularly those with disabilities, face significant barriers to employment. Ensuring access to training and employment opportunities for disabled young people is a central part of Bolland's role. The government's current spending on benefits for young people far outweighs its investment in helping them find work, with a ratio of £25 to £1.

What Happens Next

Bolland will work closely with the Department for Work and Pensions (DWP) and advise the work and pensions secretary, Pat McFadden, on the government's response to Milburn's findings. His role will involve collaborating with leading chief executives across various sectors to create clear routes into work.

One of the key challenges will be addressing the health conditions that prevent many young people from working. Anxiety, depression, and neurodevelopmental conditions are among the issues that need to be tackled. Bolland's experience and passion for this cause, as well as his existing involvement with the DWP through his charity, position him well to lead these efforts.

Similar to past economic downturns where youth unemployment spiked, the current crisis requires a coordinated and sustained effort from both the public and private sectors. The success of previous initiatives, such as the collaboration with Movement to Work, provides a blueprint for future efforts.

Original reporting by The Guardian.