Member Article

Youth unemployment is a "war" that could get worse

A former Bank of England rate-setter has warned that the current high level of youth unemployment is merely the “lull before the storm”.

David Blanchflower, former Monetary Policy Committee Member, said the school leaving age should be raised to 18, along with more investment in infrastructure to create jobs as part of a package of flexible measures that could be withdrawn as the economy grew stronger.

He said: “This is a war - we have to deal with this situation now because the consequences of not dealing with it are even worse.”

Currently, around one in five, or 946,000, under-25s are out of work, and Professor Blanchflower believes national insurance contributions should be scrapped for those under 25 to encourage employers to hire youths.

Speaking at an event organised by V, the National Young Volunteering Service, Professor Blanchflower said: “Unemployment is going to be high for some time to come. It is hitting the least skilled, minorities, and the young the most.

“Government policy is helping, but the scale of that help is much too small.”

Dr Terry Ryall, Chief executive of V, set up three years before the recession struck, said: “Implementing a unified national public service scheme could make a significant impact on the lives of young people as well as all the issues surrounding youth unemployment.”

Nevertheless, Chief Secratary to the Treasury Stephen Timms said there was “some grounds for encouragement” as unemployment has not risen as quickly as it has done in previous recessions.

This was posted in Bdaily's Members' News section by Ruth Mitchell .