Key Takeaways:
- The number of 16- to 24-year-olds who are not in education, employment, or training (Neets) in the UK is estimated to be around 946,000.
- The government has announced a review of the issue, led by Alan Milburn, which will focus on the relevance of disability and mental health.
- The benefits system and job market are full of trapdoors and dead ends, making it difficult for young people to navigate and find employment.
- The COVID-19 pandemic has had a lasting impact on young people, with many experiencing anxiety, lack of confidence, and underdeveloped social skills.
- The job market is becoming increasingly automated, with AI reducing the need for entry-level jobs and making it harder for young people to start their working lives.
Introduction to the Issue
The recent publication of the quarterly estimate of Neets in the UK has highlighted the huge issues faced by hundreds of thousands of young people living on the social and economic edge. The government has announced a review of the issue, led by Alan Milburn, which will focus on the relevance of disability and mental health. However, experts have warned that the figures should be taken with a pinch of salt due to the flaws in the labour force survey. Despite this, there is universal agreement about the huge issues the figures highlighted, and the need for urgent action to address the crisis.
The Human Impact
Roman Dibden, the chief executive of the employment charity Rise Up, has seen firsthand the impact of the Neets crisis on young people. He has experienced similar struggles himself, dropping out of school at 14 and spending eight months unemployed after his 16th birthday. His charity has assisted 120 people into work this year, but he believes that many more are struggling to navigate the benefits system and job market. Dibden emphasizes that the COVID-19 pandemic has had a lasting impact on young people, with many experiencing anxiety, lack of confidence, and underdeveloped social skills.
The Benefits System and Job Market
The benefits system and job market are full of trapdoors and dead ends, making it difficult for young people to navigate and find employment. Dibden notes that many young people have faced endless rejections, are disillusioned, and feel under pressure at the jobcentre. The experience of engaging with employers can be awful, with some companies using AI bots to conduct interviews. Even if young people manage to find employment, they are at risk of being tipped back out due to the precarious nature of the job market. The recent loss of 170,000 jobs from UK company payrolls since last summer has disproportionately affected young people, with nearly half of those losses hitting people under 25.
Systemic Problems
Experts such as Xiaowei Xu and Louise Murphy, Neets experts at the Institute for Fiscal Studies and the Resolution Foundation, believe that the problems are systemic. The Department for Work and Pensions is responsible for addressing the Neets emergency, but by the time someone collides with the benefits system, it may be too late. The roots of the problem lie in the schools and colleges, which operate on the basis that high-flying academic success is the only sure route to a secure career and a good life. The further education colleges that ought to be at the heart of the modern economy are still feeling the effects of long years of underfunding and neglect.
The Impact of Automation
The job market is becoming increasingly automated, with AI reducing the need for entry-level jobs and making it harder for young people to start their working lives. Companies such as Shopify are now requiring managers to justify hiring a human by explaining why AI can’t do the relevant job. This trend is likely to continue, with big tech disrupting young people’s lives twice over – corroding the social skills necessary for a successful career, while automating the jobs that even work-ready teens and twentysomethings might once have walked into. This highlights the deepening crisis and raises important questions about the future of work and the impact of automation on young people.
Conclusion
The Neets crisis is a complex and multifaceted issue that requires a comprehensive and nuanced approach. The government’s review, led by Alan Milburn, is a step in the right direction, but it must be followed by concrete actions to address the systemic problems that underlie the crisis. This includes reforming the benefits system and job market, investing in education and training, and addressing the impact of automation on young people’s lives. Ultimately, the fate of the COVID-19 generation hangs in the balance, and it is imperative that policymakers take urgent and effective action to address the crisis and ensure that young people have the opportunities they deserve to thrive.