Member Article

Youth unemployment and the role of the business community

The past two weeks have seen a flurry of reports on youth unemployment released amidst a wave of renewed media interest. The Office of National Statistics (ONS) revealed that around 20 percent of young people in the UK are currently unemployed – that’s one fifth of the nation’s 16-24 year olds. In certain areas such as Glasgow, this figure is as high as 25 percent, as documented by The Work Foundation’s ‘Geography of Youth Unemployment’ study.

Although the research shows that the situation is starting to improve slightly, the last few years have seen the worst ever levels of youth unemployment in the UK.

What’s the problem?

One of the main issues surrounding youth unemployment is that once young people are at the point of leaving compulsory education and looking to get on the career ladder, the options available to them are increasingly narrow.

Those that choose the university route struggle to secure degree-related jobs after graduation, and with tuition fees rising, face huge debts. A report published last week by the Institute for Fiscal Studies and the Sutton Trust has estimated that the average student will leave university with more than £44,000 worth of debt and that many graduates will still be paying back their student loans well into their fifties.

Those opting for apprenticeships are also finding it difficult, with too few places available. Not enough employers are offering apprenticeship opportunities and the level of demand is now twice that of supply.

Fundamentally, the opportunities for young people to enter into a meaningful career are diminishing.

What can be done?

In order for this critical issue to be addressed, it’s vital that young people are made aware of their options, and this means looking at alternatives to conventional study, which is currently failing as an effective route into work.

Vocational training is often an overlooked pathway into work but is an extremely valuable one. Up-skilling young job seekers can be achieved efficiently via fast-track vocational training and can help individuals into work within weeks and months rather than years.

In order to stand a better chance of securing a job, the UK’s youngest employment candidates need to be educated on the entire breadth of training and careers options available to them, rather than following conventional routes simply because it’s expected, or because it’s previously been the only way to get on the career ladder. Things have moved on, the landscape has changed and different action must be taken to achieve different results.

So how can the business community help?

Businesses have an important role to play both in raising awareness around this subject, but also in showing willingness to recruit from a wider talent pool. For decades they have recruited graduates or apprentices into their entry-level positions. Yet if young people are to be made aware of other routes into employment they need to see businesses taking on individuals from a variety of backgrounds. Employers need to be open to recruiting young people from all paths; graduates, apprentices and, now more than ever, the vocationally trained.

What’s the case?

Broadening recruitment horizons is as much beneficial for businesses as it is for young jobseekers. The timescales of vocational courses mean those who choose them are more readily and consistently available than graduates and apprentices. Students can be qualified within weeks on fast-track courses, and be ready for employment much sooner than those studying for years at university or as apprentices. As a result, the vocationally trained are available for work year-round and businesses have the opportunity to recruit talented young people at any time, rather than having to revolve their hiring efforts around the traditional summer window.

Of course, no one sector of society can solve the problem of youth unemployment alone; it requires coordinated action from a variety of stakeholders – from government to business to academic organisations. But if young people begin to see businesses widening their scope when recruiting, they’ll start to realise the validity of less conventional training options as door openers to fantastic careers.

Jonathan Davies is CEO at The Training Room, a careers provider specialising in fast-track vocational training across a range of industries, including personal training and beauty.

This was posted in Bdaily's Members' News section by The Training Room .